Paris, France, July 26, 2007 ─ Dassault Systèmes (DS) (Nasdaq: DASTY; Euronext Paris: #13065, DSY.PA) reported financial results for the second quarter and six months ended June 30, 2007.

Summary Second Quarter 2007 Financial Results

*? GAAP revenue up 14% in constant currencies and GAAP EPS up 24%

*? Non-GAAP revenue up 13% in constant currencies and non-GAAP EPS up 14%

*? DS raises 2007 revenue objective and reconfirms EPS objective

Bernard Charlès, Dassault Systèmes President and Chief Executive Officer, commented, “Dassault Systèmes delivered a very solid second quarter with revenue and earnings coming in above objectives.? Moreover, given the large customer transaction in the year-ago second quarter, achieving non-GAAP revenue growth of 13% in constant currencies and delivering non-GAAP EPS growth of 14% is rewarding.

“One of our most visible initiatives is the successful transformation of our PLM channel. Our results to date demonstrate that we are well in line with our plans, driving growth for CATIA and ENOVIA. At the same time, we continue to advance our technology and strategic roadmap.? During the second quarter we launched our newest brand, 3DVIA, whose goal is to enable 3D to become a universal media for online product experiences.? This new brand enlarges our addressable market to a wider community of users, to now include professional and consumer communities.”????
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Second Quarter 2007 Financial Summary

Second Quarter 2007 Financial Highlights:

GAAP total revenue increased 9% to €305.7 million (14% in constant currencies) and GAAP earnings per diluted share increased 24% to €0.31 in the 2007 second quarter.

Non-GAAP total revenue increased 13% in constant currencies to €308.8 million on constant currencies non-GAAP software revenue growth of 10% and services growth of 31%. Non-GAAP earnings per diluted share increased 14% to €0.42 in the 2007 second quarter.

“Looking more closely at our second quarter activity, we saw strength in all geographic regions, including Europe and across all sales channels. Overall, software revenue increased 10% in constant currencies thanks to the strong growth of recurring revenue coming from new licensing activity and a growing installed base. New licenses revenue decreased year over year, but would have been up excluding the large customer transaction of the year-ago period. ENOVIA’s results clearly illustrate the success of its product lines, with constant currency revenue growth of 32% in total and 23% before including MatrixOne.

“Importantly, our revenue results translated into strong growth in EPS in spite of the persistently strong currency headwinds,” Thibault de Tersant, Senior Executive Vice President and CFO commented.

Non-GAAP PLM revenue increased 14% in constant currencies, with non-GAAP ENOVIA revenue up 32% in constant currencies. Non-GAAP Mainstream 3D revenue increased 11% in constant currencies in the 2007 second quarter. In line with the Company’s expectations, new CATIA and SolidWorks seats totaled 20,457, level with the year-ago period, largely reflecting the very strong year-over-year comparison for CATIA. On a sequential basis, new CATIA and SolidWorks seats increased 4%.

First Half 2007 Financial Summary

First Half 2007 Financial Highlights:

Cash flow and other financial highlights

Net operating cash flow was €68.8 million and €177.2 million, respectively, for the second quarter and six months ended June 30, 2007. Cash and short-term investments totaled €544.6 million and long-term debt was €208.9 million at June 30, 2007. During the second quarter, DS paid cash dividends aggregating €50.8 million.

Other Corporate Announcements

On June 12, 2007, DS completed the acquisition of ICEM, a leading provider of high quality, surface modeling and rendering solutions. For 2006, ICEM’s revenues were approximately €20 million.

Business Outlook

Thibault de Tersant, Senior Executive Vice President and CFO, commented, “Looking to our full year 2007 objectives, our non-GAAP constant currency revenue objective is for growth of about 14-15%, increasing from 13% previously. Thanks to our strong second quarter performance and the inclusion of ICEM following completion of its acquisition, we are increasing our revenue objective. In addition, we are adjusting our yen currency exchange rate assumption, leading to a 2007 reported revenue range of about €1.285 to €1.30 billion. We are reconfirming our earnings per share and operating margin objectives.”?

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

*? Third quarter non-GAAP total revenue objective of about €300 to €305 million, non-GAAP EPS of about €0.39 to €0.41 and non-GAAP operating margin of about 22% to 22.5%;

*? 2007 non-GAAP total revenue objective of about 14% to 15% growth in constant currencies (previously 13%);

*? 2007 non-GAAP EPS objective of about €2.00 to €2.05, representing about 9% to 12% growth, (unchanged);

*? 2007 non-GAAP operating margin objective of about 27%, (unchanged);

*? Objectives based upon exchange rate assumptions for the remaining 2007 quarters of US$1.35 (unchanged) per €1.00 and JPY 165 (previously 160) per €1.00;

*? 2007 non-GAAP revenue range of about €1.285 to €1.30 billion, updated from the prior range? of €1.275 to €1.285 billion;

The non-GAAP objectives set forth above do not take into account the following accounting elements: deferred revenue write-downs estimated at approximately €9 million for 2007; stock-based compensation expense estimated at approximately €18 million for 2007, and amortization expense for acquired intangibles estimated at approximately €11 million per quarter. These estimates do not include any new stock option or share grants, or any new acquisitions completed after July 26, 2007.
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Recent Business News Highlights

*? On July 11th, DS announced the appointment of Jeff Ray as CEO of SolidWorks. Mr. Ray was previously Chief Operating Officer of SolidWorks.

*? On June 28th, Publicis Groupe and Dassault Systèmes announced a strategic partnership and launched their 3dswym Joint Venture to bring innovative 3D marketing solutions to global marketers.

*? On June 26th, DS unveiled 3DVIA to Imagine, Play and Experience Life in 3D Online.

*? On June 26th, Microsoft and DS announced an expansion of their alliance into Virtual Earth.

*? On June 18th, DS’ SolidWorks brand introduced SolidWorks 2008.

*? On June 12th, DS highlighted mid-market customers’ adoption of DS’ CATIA PLM Express.

*? On May 25th, DS announced that Airbus had selected DS’ SIMULIA Realistic Simulation Solutions as its preferred solution for non-linear FEA of aircraft structures.

*? On May 9th, DS announced full access to ENOVIA MatrixOne’s Business Process Capabilities for all CATIA/ ENOVIA VPLM users and also announced delivery of PLM SOA enterprise middleware with ENOVIA MatrixOne 10.7.1.

*? In mid-May, DS made several announcements regarding its SIMULIA brand, including a new release for Unified Finite Element Analysis, plans to introduce SIMULIA solutions for Simulation Lifecycle Management and a new SIMULIA multi-physics platform.

*? On May 8th, DS announced that DELMIA’s Body-in-White Solution received the Automotive Engineering Tech Award at the SAE (Society of Automotive Engineers) World Congress.