Bosch and Mechanical Dynamics Collaborate on $1 Million Project To Develop Advanced Sensor System for Automotive Occupant Safety

    ANN ARBOR, Mich., Aug. 2 Robert Bosch Corp., a leading
supplier of automotive safety systems and other products, is working with
Mechanical Dynamics, Inc. in a year-long, $1 million program to
develop a sensor that could reduce the risk of injuries caused by air bags in
automobile crashes.  Approximately $400,000 in revenue from this project
remains to be recognized by Mechanical Dynamics in the second half of 2001 as
additional services are performed.
    "We are very pleased to work with Bosch on this critically important
project," said Robert R. Ryan, president of Mechanical Dynamics.  "They have
always been in the forefront of automotive advancements, and this sensor
program is one more example of the ground-breaking research they conduct.
Utilizing our expertise in providing engineering solutions through virtual
prototyping, we can help Bosch not only achieve their project timeline, but
accelerate innovation while reducing the risk involved in developing a
significant safety system."
    Mechanical Dynamics' consultants are working with Bosch, automotive OEMs,
and supplier partners in both the U.S. and Germany to develop and document
analytical procedures and perform manufacturing design and analysis.  The
highly collaborative process includes conducting finite element analysis (FEA)
studies, correlating test data with the analyses, and optimizing the design.
    "At Bosch, we've been working on these advanced sensor systems for several
years," said Robert Jones, director of engineering, Sensor Systems, at Bosch.
"Our experience has suggested several keys to success, and Mechanical
Dynamics' mechanical design and analysis expertise, along with their knowledge
of advanced computer-aided engineering tools, will give us a decided advantage
in creating an optimal sensor that meets our development criteria."
    Bosch designs and produces precision automotive components and systems
sold to vehicle and powertrain manufacturers worldwide.  These include systems
and components for gasoline and diesel injection, airbag components, ABS and
conventional braking systems, and telematics, as well as small motors,
electrical, and electronic equipment.  Robert Bosch Corporation, the wholly
owned subsidiary of Robert Bosch GmbH, headquartered in Stuttgart, Germany, is
responsible for North American operations.
    Mechanical Dynamics' market-leading ADAMS(R) software allows engineering
teams to build and test functional virtual prototypes of complex mechanical
designs, realistically simulating full-motion behavior 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.  The company's products are the de facto standard in the
automotive industry, and lead the market in aerospace, rail, and general
machinery.  Building on industry partnerships, strategic acquisitions, a
strong product pipeline, and a dedicated team worldwide, Mechanical Dynamics
has established itself as the global leader in functional virtual prototyping.
    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 and 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 2000 Annual Report and Form 10-K and most recent Quarterly
Report on Form 10-Q.
    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.

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