PLM solutions from IBM and Dassault Systèmes help Shipbuilder Pioneer Development of Next-Generation Aircraft Carrier

Paris, September 22nd, 2005 – IBM and Dassault Systèmes (Nasdaq: DASTY, Euronext Paris: #13065, DSY.PA) today announced that Northrop Grumman Corporation recently cut the first piece of steel for the CVN-21, the U.S. Navy’s first digitally designed and produced aircraft carrier, thus reaching its first construction milestone in this project. Using IBM Product Lifecycle Management (PLM) solutions, developed by Dassault Systèmes, with a migration to the V5 portfolio of solutions already planned, Northrop Grumman’s Newport News sector is designing, building and managing the CVN-21 in a global and complex project in which IBM Global Services and Dassault Systèmes’ R&D teams have been working closely.

To help meet the challenge of increasing productivity and performance through all phases of development, from initial design to manufacturing, Northrop Grumman has relied on IBM Global Services. This massive undertaking capitalizes on the collaboration capabilities within each of the IBM PLM solutions, developed by Dassault Systèmes, ensuring secure integration between Northrop Grumman Newport News business information systems, suppliers, sub-contractors and the government client. These PLM solutions integrate engineering capabilities and business needs, enabling Northrop Grumman Newport News and the Navy to plan the near and long-term requirements for the CVN-21, as well as manage the lifecycle costs, while significantly improving quality.

Northrop Grumman Newport News has rolled out a 1700-user implementation of CATIA, the world’s leading 3D product development application, and a 2000-user implementation of ENOVIA, the industry’s premier lifecycle application for product data and lifecycle management and decision support.

 “The IBM and Dassault Systèmes PLM solutions have delivered on scalability as we moved from a few hundred to 1700 users,” said Mike Shawcross, vice president, CVN-21 Program, Northrop Grumman Newport News. “The stability has been excellent. IBM and Dassault Systèmes have partnered with Northrop Grumman from day one. Their enhancements have improved productivity and delivered the overall ship design capabilities we need to meet the demands of our Navy customer. In fact, we expect to gain even more efficiencies when we migrate to the V5 platform.

” The scope of the CVN-21 project is massive. The ship’s 1100-foot hull will include a new propulsion system, already being designed, along with many transformational features to reduce crew size while improving combat performance. With the steel already cut earlier this year for the first advanced hull unit, Northrop Grumman Newport News is planning to start construction on additional advanced hull units in 2006. To build upon the benefits gained with its V4 implementation, Northrop Grumman Newport News is planning a migration to V5, IBM and Dassault Systèmes’ groundbreaking architecture for CATIA, ENOVIA and the rest of their industry-leading PLM solutions. Execution of the V5 roadmap transition starts this month and is expected to be completed by the end of 2010.

”From our solid position on the V4 architecture, we can move confidently to take advantage of the advances in the V5 portfolio of PLM solutions,” said Leni Kaufman, vice president and CIO, Northrop Grumman Newport News. ”Execution of our V4 to V5 Roadmap will allow us to continually improve our performance and bring more value to our Navy customer.”

“This is a tremendous recognition that our PLM solutions can transform the shipbuilding industry business model and provide real business benefits, just like in automotive or aerospace.” says John Porter, vice president, Americas, Product Lifecycle Management Solutions, IBM. “IBM is the only PLM partner that could succeed in managing a project of such a magnitude and complexity.”

“A project of this massive scale and scope demonstrates the power of our PLM solutions,” said Harry Daglas, vice president, R&D Shipbuilding & Plant Solutions, Dassault Systèmes. “Northrop Grumman has renewed its commitment to PLM by moving to V5, thereby continuing the CVN-21 success story, which has been and continues to be a source of pride for Northrop Grumman, the U.S. Navy and all of the entities involved in the project.”

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