Mazda Begins Multi-Year Agreement with $600,000 Order to Mechanical Dynamics For Development and Implementation of Virtual Testing Environment

    ANN ARBOR, Mich., Feb. 5 Mazda Motor Corporation has
placed an initial $600,000 order with Mechanical Dynamics, Inc.
, a worldwide provider of software and services for the virtual
prototyping market, as the first portion of a multi-year agreement in which
Mechanical Dynamics will play a lead role in the development and
implementation of a virtual testing environment at Mazda.  The majority of
revenue from the order is expected to be recognized by Mechanical Dynamics
during the first quarter of 2001.
    Based in Hiroshima, Japan, Mazda manufactures a diverse line of passenger
cars and commercial vehicles and has the unique distinction of being the only
automaker to feature three types of engines: conventional gasoline-piston,
diesel, and rotary.
    Along with partner company MTS Systems Corporation ,
Mechanical Dynamics will provide functional virtual prototyping software and
services to Mazda as the company begins Phase 3 of its Mazda Digital
Innovation program.  First announced in 1996, the program is aimed at
increasing the quality and efficiency of vehicle development and reducing
costs and time-to-market through a complete restructuring of all vehicle
development processes, from concept to manufacturing, using integrated
computer-aided design, engineering, and manufacturing tools.  Phase 3 is
focused on incorporating advanced virtual testing simulation into the product
development cycle.
    "Mazda's selection of Mechanical Dynamics as a key partner in their
Digital Innovation program is highly gratifying, and confirms our vision of
functional virtual prototyping as an essential and critical component of the
product development process," said Robert R. Ryan, president of Mechanical
Dynamics.
    Mazda, which has previously used Mechanical Dynamics' ADAMS(R) software
for suspension design and vehicle dynamics, will use new virtual testing tools
developed by MTS and Mechanical Dynamics.  These tools allow designers to test
models on the computer before physical prototypes or physical test systems are
available.
    In Phase 3, Mazda will conduct virtual tests at the planning and design
stages of vehicle development to study issues such as durability,
crashworthiness, handling, stability, noise, vibration and harshness.  In
addition, virtual testing will be used to prove the quality of major
components such as engines, transmissions, and suspensions.  Mazda expects to
reduce the number of prototype cars by 30% and testing time by 50% with this
technology.
    "Virtual testing tools provide powerful capabilities for optimizing and
validating product design, and speeding up the development process," Ryan
said.  "By using the same user interfaces and signal processing techniques
employed with physical testing, evaluation of issues such as durability and
fatigue, vehicle dynamics, handling, ride and comfort, and noise and vibration
can be performed in predictive mode much earlier in the design process."
    "Mazda has been using ADAMS for many years in the suspension design
group," said Akito Nishiyama, senior staff manager of the Mazda Digital
Innovation program.  "The selection of Mechanical Dynamics and MTS to develop
a virtual testing environment as part of the Mazda Digital Innovation program
will allow us to complete the final phase of the program and achieve our goal
to be an industry leader in virtual testing."
    MTS Systems Corporation manufactures computer-based testing and simulation
systems for determining the mechanical behavior of materials, products, and
structures, and measurement and control instrumentation products for the
automation of the manufacturing processes.  The company had revenues of $392
million in the fiscal year ending September 2000.  Additional information on
MTS can be found on at http://www.mts.com .
    Mechanical Dynamics pioneered the field of mechanical system simulation
with its market-leading ADAMS(R) software, and remains committed to extending
the capabilities of this technology to benefit manufacturers in every industry
worldwide.  Engineering teams use ADAMS to build and test functional virtual
prototypes of their complex mechanical system designs.
    Along with getting to market faster and at lower cost, the company's
functional virtual prototyping solutions provide additional significant
benefits: closer integration between manufacturers and their suppliers;
increased communication among design, analysis, and engineering teams; and the
ability to manage the risks of the design process through more and better
information earlier in the cycle.
    Mechanical Dynamics also offers extensive implementation services,
including consulting and training.  In this way, the company partners with its
customers to help reduce the time, costs, and risks of the product development
process and meet the "Smarter to Market(TM)" challenge.
    Except for historical information contained herein, some matters discussed
in this news release constitute forward-looking statements which 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 2300 Traverwood Drive, Ann Arbor, Michigan 48105.
Phone: 734-994-3800.  Fax: 734-994-6418.  E-mail: info@adams.com .  Online:
http://www.adams.com .

    ADAMS and the Mechanical Dynamics logo are registered trademarks of
Mechanical Dynamics, Inc.  All other company, brand, or product names are or
may be trademarks of their respective holders.