Dassault Systemes Completes Acquisition of Spatial Component Business

Spatial’s ACIS® Solid Modeling Technology and Expertise Positions Dassault Systemes as the World's Leading Provider of 3D Software Components

Suresnes, France, November 14, 2000 - Dassault Systemes (NASDAQ: DASTY, Bourse de Paris) today announced it has completed the acquisition of Spatial Technology Inc.’s 3D software component business division through a cash transaction for an amount of $ 25 Million. At the Annual Meeting, stockholders from Spatial Technology Inc. voted on and approved the transaction. The component business will be known as Spatial Corporation and will operate as an independent, wholly owned subsidiary of Dassault Systemes as of today. Michael Payne, Chief Technology Officer of Dassault Systemes, has been appointed Chief Executive Officer of Spatial.

As Dassault Systemes’ new technology company, Spatial’s mission is to expand the overall market for 3D, make 3D pervasive in e-commerce, and establish 3D industry standards to accelerate communication across all businesses. Spatial’s strategy is to offer a broader set of 3D software components to the worldwide economy thereby accelerating the overall creation of value-added services. Spatial will continue to evolve and engineer world-leading 3D component technologies including its flagship ACIS® 3D geometrical modeler, visualization technologies, and interoperability solutions. Furthermore, Spatial will leverage the technical excellence of all the Dassault Systemes companies to offer new and existing 3D technologies as component extensions of the current Spatial product family.

“As an OEM licensee of Spatial visualization component technologies, we look forward to a continued, broadening relationship with Dassault Systemes,” said Doug Johnson, Vice President and General Manager of CoCreate’s Shared Engineering Division. “Spatial’s leadership in 3D modeling, Internet and visualization technologies makes our strategic relationship with Spatial an important part of our vision of delivering best-in-class Collaborative Engineering solutions.”

Robert (Buzz) Kross, Vice President, Manufacturing Division, Autodesk, Inc. (NASDAQ: ADSK), remarked, “A long-time ACIS licensee, Autodesk is pleased with Dassault Systemes’ commitment to the success of existing Spatial customers. With the ability to leverage the technical resources of the Dassault Systemes Group, combined with a greater focus on product quality and customer support, Spatial is now even better equipped to help us provide our Mechanical Desktop and Autodesk Inventor customers with the 3D modeling functionality they need to be successful in a competitive, global marketplace.”

“Acquiring Spatial is a key step toward Dassault Systemes’ strategy to have 3D everywhere, anytime and for everyone,” said Bernard Charles, President, Dassault Systemes S.A. “Our goal for Spatial is to offer best-of-breed 3D software components for all and to establish an industry standard to simplify 3D data exchange across the industry. With Dassault Systemes, Spatial is now even better equipped to help its customers build and enhance their products, while growing to make 3D pervasive in the e-commerce revolution. We are pleased to welcome Spatial to the Dassault Systemes Group and remain dedicated to the ongoing success of Spatial customers, partners, and employees.”

Spatial has assembled a world-class executive staff, leveraging the technological and leadership strengths of both Dassault Systemes and Spatial. Mike Payne will lead the team, along with Didier Bourcier as Vice President of Research and Development, previously Director for CATIA geometry modeling technology, and Linda Lokay as Vice President of Sales and Marketing, previously with SolidWorks and Parametric Technology. Todd Londa and Bob Jamieson continue in their current roles in Finance and Administration and Human Resources.

“We realize this acquisition marks a major turning point for many of Spatial’s customers and business partners and we remain dedicated to the ongoing success of our customers' businesses. Our near-term objectives include building stronger relationships with our new and existing customers by focusing on customer satisfaction, product quality, and comprehensive services to support our customers through all phases of development,” said Michael Payne, Chief Executive Officer, Spatial. “We feel strongly that by working together to share in the success of our customers we can better fulfill customer needs and establish the strong working relationships we need to expand our product offerings in the future.”

“Alibre is focused on providing Internet-based collaborative product development solutions that address the needs of global manufacturers and their extended supply chains,” said J. Paul Grayson, President and CEO, Alibre, Inc. “Spatial's best-of-breed 3D component technologies are an important part of our strategy, and as Dassault Systemes’ new Technology Company, we feel that Spatial is better positioned to help us realize our vision.”

"The strategic relationship Alventive has forged with Spatial has been important to our vision of delivering best-in-class collaborative commerce capabilities. By leveraging Dassault Systemes' resources, we view Spatial as now even better equipped to provide innovative solutions for 3D software functionalities that support the entire design process,” remarked David W. Tiley, President and Chief Executive Officer, Alventive, Inc.

“As a long-term Spatial partner, CADKEY welcomes our new relationship with Dassault Systémes and we are confident that their acquisition of Spatial will have a positive impact on the advancement and broadening of Spatial's 3D software components. Spatial will now be able to leverage the technical capabilities of Dassault Systémes companies, which in turn will help CADKEY to advance its lead in supplying truly interoperable, price/performing professional design software,” said Robert Bean, President and Chief Executive Officer, CADKEY Corporation.

Spatial is distinguished as the market-leading provider of world-class 3D software components. Having pioneered the first 3D modeling component technology in the world, ACIS®, Spatial has evolved to offer additional 3D component technologies for visualization and 3D data interoperability. Now, as part of the Dassault Systemes group, Spatial will continue its efforts to deliver 3D components to the worldwide economy.