MSC.Software and IBM Form Worldwide Strategic Alliance to Offer Enterprise Simulation Solutions and Capture PLM Growth

Global Leaders to Jointly Market Services and Products

Santa Ana, CA - 17 Jul 2006: IBM (NYSE: IBM - News) and MSC.Software Corp. (OTC: MNSC - News), the leading global provider of enterprise simulation solutions including simulation software and services, today announced a worldwide strategic alliance. MSC will embed and optimize IBM technology as part of their SimManager Enterprise offering, integrating services oriented architecture (SOA) with DB2, Websphere and Tivoli to meet the growing demand for enterprise based computer-aided engineering (CAE) and analysis in the PLM space.
Building upon its strong experience in engineering, IBM Global Services will develop Centers of Competence that help deliver CAE enterprise solutions to clients in association with SimManager Enterprise implementations. IBM Global Services will also resell and implement SimManager Enterprise, and both companies will undertake joint sales and marketing activities to promote the offering.

With this alliance, enterprise simulation customers can now take advantage of an alliance between two trusted providers that helps deliver high performance, enterprise scalability, storage flexibility and robust reliability and availability in an on demand world. The combined SOA will also permit customers to take advantage of deploying an on demand enterprise built from reusable components that help curb development costs and improve time to market.

“The combination of IBM and MSC’s capabilities in the PLM and CAE/Simulation markets will enable us to drive accelerated product innovation in the automotive, aerospace and heavy equipment industries through the deployment of Enterprise Simulation Solutions,” said Jan Beauchamp, general manager, IBM Global Automotive and A&D Industries. “The CAE and PLM markets are enjoying significant growth, this alliance positions IBM and MSC Software with the right solution at the right time to take advantage of the market opportunity.”

“This is a killer strategy for both companies that complements the activities of IBM’s PLM group,” said Charles Foundyller, CEO, Daratech. “The CAE software and services market topped $2.25 billion in 2005, with a year- over-year increase of 11% and is projected to outpace the growth of the CAD and CAM markets during the next five years. With this alliance, MSC Software, the worldwide revenue leader in CAE, and IBM are poised to grow this dynamic market to a new level, especially in the automotive, aerospace and defense industries, where IBM is an icon.”

“We are honored to have been selected by IBM, the longstanding leader in PLM, to globally deliver enterprise simulation solutions,” said Bill Weyand, chairman of the board and chief executive officer, MSC.Software. “MSC brings the simulation domain expertise while IBM brings the enterprise infrastructure experience -- together we offer the best of both worlds for our customers -- an enterprise simulation solution set that drives innovation and is deployed globally through the seasoned IBM consulting and services team.”

For more information on this alliance or on SimManager Enterprise, please visit: www.mscsoftware.com.

About SimManager Enterprise
Using a combination of simulation data management, process management and knowledge automation, SimManager Enterprise allows business to harness the sea of data produced in product development and save time and costs with easy management and integration of engineering data within the IT infrastructure. The adaptable and configurable SimManager Enterprise can be used immediately to leverage intellectual property for business advantage.

About IBM Global Services
For more information on IBM and its services business, visit www.ibm.com.

About MSC.Software Corporation
MSC.Software (OTC: MNSC - News) is the global leader of enterprise simulation solutions, that help companies make money, save time and reduce costs associated with designing and testing manufactured products. MSC.Software works with thousands of companies in hundreds of industries to develop better products faster by utilizing information technology, software, services and systems. MSC.Software employs more than 1200 people in 23 countries. For additional information about MSC.Software’s products and services, please visit www.mscsoftware.com.

***

Safe Harbor Language This press release contains forward-looking statements, including all statements relating to the features, benefits, capabilities and performance of SimManager Enterprise, SimEnterprise and other MSC.Software products. These statements are subject to risks and uncertainties that could cause actual results to be materially different than expectations. Such risks and uncertainties include, but are not limited to, changes in technology, the end- user computing and analysis environment, implementation and support that meet evolving customer requirements, general industry trends and the impact of competitive products. Furthermore, information provided herein, which is not historical in nature, are forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All such forward- looking statements are based largely on management’s expectations and are subject to and qualified by risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations. The MSC.Software Corporate Logo, MSC, Adams, Dytran, Marc, MD Nastran, MSC Nastran, Patran, MSC SimDesigner, MSC SimEnterprise, and MSC SimManager Enterprise are trademarks or registered trademarks of MSC.Software Corporation in the USA and/or other countries. NASTRAN is a registered trademark of NASA. All other trademarks belong to their respective owners.

Contact Information

Takako Yamakura

IBM Media Relations

IBM

Contact via E-mail