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Mechanical Dynamics and University of Iowa Sign Agreement

17 November 1998

Mechanical Dynamics and University of Iowa Sign Partnership Agreement To Develop System-Level Durability Simulation Technology

    ANN ARBOR, Mich., Nov. 16 -- Mechanical Dynamics, Inc.
today announced a strategic partnership with the University of
Iowa in which durability simulation technology developed by the University
will be integrated with Mechanical Dynamics' ADAMS(R) virtual prototyping
software to provide system-level durability assessment capabilities.
    The University's technology, developed by the Center for Computer-Aided
Design (CCAD), allows engineers and designers to study how component design
revisions will impact component durability.  As part of this agreement,
Mechanical Dynamics will acquire this technology and further develop it in
collaboration with CCAD, integrating it with the system-level design
sensitivity prediction capabilities of ADAMS.
    Douglas E. Peterson, Mechanical Dynamics' vice president of product
development, said, "The integration of these two technologies will provide
product engineers and designers a system-level approach to durability
assessment, and can assist manufacturers in reducing component defects,
lengthening product life, and improving overall product quality."
    Peterson noted that, in the automotive industry, durability testing
accounts for 60% of all testing activities, and is the most time-consuming
physical test performed during vehicle design and development.  "The ability
for engineers to accurately and reliably predict the durability of a vehicle
design at both the system and component level will have a significant impact
on our customers' product development cycle, both in terms of cost and time-
to-market," he said.
    In connection with the transaction, Mechanical Dynamics expects to report
a one-time charge in the fourth quarter of 1998 of $400,000, associated with
the write-off of in-process research and development acquired from the
University.
    Mechanical Dynamics pioneered the field of mechanical system simulation,
and has remained focused on the expansion of this technology since its
founding in 1977.  Thousands of engineering teams in nearly every
manufacturing industry use the company's ADAMS software to build and test
virtual prototypes, realistically simulating on their computers the full-
motion behavior of complex mechanical system designs.  Using ADAMS can help
manufacturers reduce the number of costly physical prototypes, improve design
quality, and significantly shorten product development cycles.
    Mechanical Dynamics offers stand-alone ADAMS software as well as fully
embedded ADAMS capabilities for use in computer-aided design and manufacturing
(CAD/CAM) software environments, including: CATIA and SolidWorks from Dassault
Systemes; I-DEAS Master Series and Artisan Series from Structural Dynamics
Research Corp.; Unigraphics from Unigraphic Solutions, Inc.; Pro/ENGINEER and
CADDS 5 from Parametric Technology Corp.; SolidDesigner from CoCreate
Software, Inc.; AutoCAD Mechanical Desktop from Autodesk, Inc., Design
Spinnaker from NK-EXA Corp.; MicroStation from Bentley Systems, Inc.; DYNAMO
from Tecnomatix; and Bravo from Applicon.
    Mechanical Dynamics has also partnered with leading computer-aided
engineering (CAE) suppliers to provide interconnectivity between their
products and ADAMS.  These partners  include: MacNeal Schwendler Corp.
(MSC/Nastran); ANSYS, Inc. (ANSYS); Hibbitt, Karlsson & Sorensen, Inc.
(Abaqus); Structural Research and Analysis Corp. (Cosmos); Integrated Systems,
Inc. (MATRIXx); The MathWorks, Inc. (Matlab); and Boeing Engineering Analysis
Group (Easy5).
    Except for historical information contained herein, some matters discussed
in this news release constitute forward-looking statements that involve risks
and uncertainties that could cause actual results to differ materially from
those projected.  These include possible delays in developing, completing, or
shipping new or enhanced products, as well as other risks or uncertainties
that are detailed from time to time in reports filed by Mechanical Dynamics,
Inc. with the Securities and Exchange Commission, including Mechanical
Dynamics, Inc.'s registration statement on Form S-1 and related prospectus
dated May 14, 1996 and the "Risk Factors" described therein.
    Additional information about Mechanical Dynamics can be obtained by
writing to the company at 2301 Commonwealth Boulevard, Ann Arbor, Michigan
48105.  Phone: 734-994-3800.  Fax: 734-994-6418.  E-mail: info@adams.com.
World Wide Web: http://www.adams.com.