DS introduced Abaqus Release 6.10 from SIMULIA with New Multiphysics Technology. In response to expanding industry demand for realistic simulation, the new release delivers more than 100 customer-requested enhancements for modeling, performance, usability, visualization, multiphysics, and core mechanics. Abaqus 6.10 introduces a new multiphysics capability for performing Computational Fluid Dynamics (CFD) simulation.

DS Has Launched Open Online DraftSight Community. DS has made available DraftSight.com, aimed at providing all computer-aided design (CAD) users access to new services and products to unlock valuable data stored in billions of DWG files. Building on Dassault Systèmes’ vision of enabling social innovation, the launch of this community comes as a direct result of customer demand and marks the next step in bringing DWG file management and storage into an easy-to-use, online, service-oriented environment.

Business Outlook

Thibault de Tersant, Senior Executive Vice President and CFO, commented, “The quarter unfolded largely as we expected from a revenue perspective. We saw some upside thanks to our recurring software revenue, which has reached a positive inflection point somewhat earlier than we had estimated. Our customers are moving back to their historical subscription renewal levels, confirming the value our software brings to them. Our bottom-line performance was particularly gratifying, with a non-IFRS operating margin of 28% and an EPS growth of 57%, coming in above our objectives thanks principally to the continued positive impact of our 2009 efficiency plan and our revenue performance.

“Looking ahead we are reconfirming our second half outlook and adding to it the recently completed acquisitions, leading to an acceleration of revenue growth to about 22% to 25% in constant currencies for the 2010 second half. Taking into account the second quarter over-performance leads to an updated full year non-IFRS total revenue growth objective of 16% to 18% in constant currencies. Our objectives are consistent with our view of a gradual improvement in the economic environment.

“With respect to our earnings and operating margin objectives, we are now targeting non-IFRS EPS growth of 21% to 26% to reflect our continued focus on driving efficiencies across the business and benefiting from the progress made to date, and to take into account the currency evolution.”

The Company’s current objectives are the following:

• Third quarter 2010 non-IFRS total revenue objective of about €365 to €375 million, non-IFRS operating margin of about 25% to 26% and non-IFRS EPS of about €0.52 to €0.56;
• 2010 non-IFRS revenue growth objective range of about 16% to 18% in constant currencies; (€1.495 to €1.515 billion based upon the 2010 currency exchange rate assumptions below from €1.455 to €1.475 billion previously);
• 2010 non-IFRS operating margin of about 26% to 27% from about 26%;
• 2010 non-IFRS EPS range of about €2.25 to €2.35, representing growth of about 21% to 26%; (previous range €2.19 to €2.28)
• Objectives are based upon exchange rate assumptions for the 2010 third quarter of US$1.37 per €1.00 and JPY128 per €1.00 and a full year average of US$1.35 ($1.40 previously) per €1.00 and JPY125 (JPY130 previously) per €1.00.

The Company’s objectives are prepared and communicated only on a non-IFRS basis and are subject to the cautionary statement set forth below.

The non-IFRS objectives set forth above do not take into account the following accounting elements and are estimated based upon the 2010 currency exchange rates above: deferred revenue write-downs estimated at approximately €17 million for 2010; share-based compensation expense estimated at approximately €21 million for 2010 and amortization of acquired intangibles estimated at approximately €66 million for 2010. The above objectives do not include any impact from other operating income and expense, net principally comprised of, acquisition, integration and restructuring expenses. These estimates do not include any new stock option or share grants, or any new acquisitions or restructurings completed after July 29, 2010.

Webcast and Conference Call Information

Dassault Systèmes will host a webcast and a conference call today, Thursday, July 29, 2010. Management will host a webcast at 9:30 AM London time/10:30 AM Paris time and will then host the conference call at 9:00 AM New York time/2:00 PM London time/3:00 PM Paris time. The webcast and conference call will be available via the Internet by accessing http://www.3ds.com/company/finance/. Please go to the website at least fifteen minutes prior to the webcast or conference call to register, download and install any necessary audio software. The webcast and conference call will be archived for 30 days.

Additional investor information can be accessed at http://www.3ds.com/company/finance/ or by calling Dassault Systèmes’ Investor Relations at 33.1.61.62.69.24.

Forward-looking Information

Statements herein that are not historical facts but express expectations or objectives for the future, including but not limited to statements regarding the Company’s non-IFRS financial performance objectives, are forward-looking statements.