Dassault Systèmes Reports Strong Third Quarter Results With New Licenses Revenue up 54% in Constant Currencies

Paris ─ Dassault Systèmes (DS) (Euronext Paris: #13065, DSY.PA) reports IFRS unaudited financial results for the third quarter and nine months ended September 30, 2010. These results were reviewed by the Company’s Board of Directors on October 27, 2010.

“Dassault Systèmes delivered a powerhouse third quarter thanks to important contributions from all of our brands and superb execution from every organizational unit in DS and among our sales partners around the globe. We were very pleased by both the level of new software sales and the growth of our recurring software revenue, commented Bernard Charlès, Dassault Systèmes President and Chief Executive Officer. “Given the backdrop of a still fragile economic recovery, this performance demonstrates the value of our industry solutions for our customers. “We continued to gain important new references for our Version 6 global collaborative platform, amongst the most recent of which was Bell Helicopter’s decision to select ENOVIA V6 and expand the usage of our products to include SIMULIA, DELMIA and 3DVIA and to upgrade to CATIA V6.”

DS completed the acquisition of the IBM PLM operations on March 31, 2010 and these operations were merged into the Company’s operations within its PLM business segment for the six-month period commencing April 1, 2010. Due to the deep integration of former IBM PLM employees into the Company’s operations, involving many changes in sales territories and responsibilities, it is not possible to track the IBM PLM revenue and profit since the acquisition date. As previously disclosed, the IBM PLM share of DS software revenue was estimated at approximately €45 million in the 2009 third quarter.

* Non-IFRS revenue, operating margin and EPS ahead of DS objectives

* In constant currencies, IFRS total revenue increased 30% (38.4% as reported) and non-IFRS total revenue increased 32% (40.1% as reported)

* Non-IFRS operating margin increases 250 basis points to 28.0%

* EPS up 44% to €0.46 (IFRS) and up 48% to €0.65 (non-IFRS)

* DS increases 2010 non-IFRS financial objectives for Q3 overachievement