Mechanical Dynamics Receives $650,000 Order from Dana Corporation

    ANN ARBOR, Mich., Feb. 20 Mechanical Dynamics, Inc.
announced today that Dana Corporation has selected
Mechanical Dynamics' Functional Digital Car(TM) software solution as a
standard for Dana's virtual prototyping programs, with an initial order placed
in the fourth quarter of 2000 for more than $650,000 in software and services.
Approximately $430,000 in revenue from this order remains to be recognized by
Mechanical Dynamics in 2001 as additional software is delivered and services
are performed.

    One of the world's largest suppliers to vehicle manufacturers and related
aftermarkets, Dana Corporation was founded in 1904 and is based in Toledo,
Ohio.  The company's foundation businesses are axles, driveshafts, structures,
brake and chassis products, fluid systems, filtration products, and bearings
and sealing products.

    "We are very pleased that Dana, a premier global automotive supplier, has
chosen ADAMS as its standard for functional virtual prototyping," said Robert
R. Ryan, president of Mechanical Dynamics.  "Our Functional Digital Car
solution provides a common framework for evaluating new product innovations
and their effect on overall product performance without extensive reliance on
costly hardware prototype testing.  Dana understands the strategic advantage
this technology will give it in collaborating with its OEM customers to bring
new, high-quality products to market in record time."

    "With the number and complexity of vehicle control systems increasing
rapidly and our customers continuing to shrink their time-to-market, having
the capabilities of functional virtual prototyping and hardware-in-the-loop
will afford us a competitive advantage in the marketplace," said Steve Hanley,
vice president, Dana's Modules & Systems Group.  "We need to be in the
forefront with these new technical capabilities for many reasons, including
meeting and exceeding our customers' requirements, and helping further reduce
our time-to-market.  This technology will assist in our collaboration with our
customers and suppliers and strengthen our position as a system integrator
with our modules and systems capabilities."

    As part of this new agreement, Dana also adopted Mechanical Dynamics'
hardware-in-the-loop (HIL) solution.  HIL simulation allows an engineer to
test a physical prototype of an electronic control unit (ECU) while the ECU is
connected to a real-time computer simulating the behavior of the driver and
vehicle.  Compared to traditional control system testing, which requires
driving a prototype vehicle or setting up complete test benches with hardware
components, HIL is less expensive, faster, and permits accurate repetition of
critical design tests.

    The HIL solution gives Dana's Spicer Light Axle Group in Fort Wayne, Ind.,
a leading position to test, in real-time conditions, complete virtual vehicles
with electronic integration at design concept stages, resulting in faster
time-to-market of new electronically controlled active products.