Mazda Orders Mechanical Dynamics' Virtual Prototyping Software

    ANN ARBOR, Mich., May 30 Mazda Motor Corporation has
placed a $2 million follow-on order for Mechanical Dynamics, Inc.'s
functional virtual prototyping software and services related to
the development and implementation of a virtual testing environment at Mazda.
Revenue from the order is expected to be recognized by Mechanical Dynamics
during the next 18 months.

    "As a key partner in Mazda's Digital Innovation program, Mechanical
Dynamics has a significant opportunity to prove the essential need for
functional virtual prototyping as an integral component of the product
development process," said Robert R. Ryan, president of Mechanical Dynamics.
"Our Functional Digital Car solution, in combination with the virtual testing
tools we've developed with our partner companies, provides powerful
capabilities for optimizing and validating product design and speeding up the
development process."

    First announced in 1996, Mazda's Digital Innovation program, now in Phase
3, aims to increase the quality and efficiency of vehicle development and
reduce costs and time-to-market through a complete restructuring of all
vehicle development processes 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
expects to increase testing accuracy while reducing both the number of
prototype cars and testing time with this technology.

    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.

    Akito Nishiyama, senior staff manager of the Mazda Digital Innovation
program, said, "This Mazda project is aimed at extensive innovation within the
engineering process by creating a virtual testing system.  This will enable us
to verify, virtually, whether the product target is achieved at the planning
and design stage when a prototype vehicle is not available.  Mazda selected
Mechanical Dynamics as a major partner to realize our vision."

    Mazda, which has previously used Mechanical Dynamics' ADAMS(R) software
for suspension design and vehicle dynamics, will use new virtual testing tools
developed by Mechanical Dynamics and its SmartSim Community partner companies,
MTS Systems Corporation , the leader in physical and computer-
based testing and simulation systems, and nCode International Ltd., developer
of industry-leading durability software.  The three companies have jointly
developed several new products to provide an integrated suite of industry-
leading test hardware, functional virtual prototyping software, durability
assessment, and information management tools.

    The pioneer in mechanical system simulation, Mechanical Dynamics reported
$46.6 million in revenue in 2000, reflecting 16% growth over 1999.  The
company's market-leading ADAMS(R) software, the de facto standard in the
automotive industry, allows engineering teams to build and test functional
virtual prototypes of complex mechanical designs, realistically simulating the
full-motion behavior of these systems on their computers.  This helps
manufacturers produce better products faster and at lower cost, with reduced
risk and increased communication throughout the product development process.