EAI Announces Acquisition of Swedish Firm Kx Verksamhetsutveckling AB

29 July 1999
EAI Announces Acquisition of Swedish Firm Kx Verksamhetsutveckling AB
    Establishes EAI as a Leading Provider of Collaboration, Visualization
         and Analysis Solutions to Scandinavian Manufacturing Market

    AMES, Iowa, July 29 -- Engineering Animation, Inc.
announced today that it has acquired Kx Verksamhetsutveckling
AB, ("Kx") a privately-held company in Gothenburg, Sweden.  The transaction,
valued at approximately $3 million, was completed on July 27, 1999.  Kx
provides integrated software solutions, training and support for customers
such as Volvo, Saab, Scania, ABB and Ericsson.
    "The Kx acquisition helps further establish EAI as the leading provider of
collaboration, visualization and analysis solutions to the manufacturing
industry," said Matthew Rizai, president and chief executive officer of EAI.
"Kx has superb people and excellent client relationships -- and we are pleased
that they chose to become part of the EAI team.  With Kx's broad customer base
and strong deployment and systems integration capabilities, we are well
positioned to meet the needs of customers throughout Scandinavia and Europe."
    Kx's product line includes K-log(TM), a Web-based database system designed
to capture key project decisions in real time, and K-room(TM), a meeting space
for product development teams.  Kx has extensive experience in the automotive
and other manufacturing sectors as well as with EAI's solutions, having served
as a major distributor for DELTA Industrie Informatik GmbH, which was acquired
by EAI in 1998.
    Kx was founded by Jan Bergland and Bertil Olsson in 1996.  "Joining with
EAI will strengthen our ability to provide integrated solutions to our
customers," said Bergland.
    "Kx has always focused on the needs of its customers," added Olsson.  "As
part of EAI, we will be even more effective in serving our customers and
helping them achieve new levels of efficiency."
    Kx reported revenue for its fiscal year ended April 30, 1999 of
$2 million.  EAI will account for the acquisition of Kx as a purchase and
there will be no in-process research and development charges.  The Company
expects the impact of the acquisition on 1999 earnings per share to be neutral
to slightly accretive.
    "Kx adds to our expanding presence and distribution capabilities in
Europe," said Raimund Menges, vice president and general manager of European
operations for EAI.  "We believe that with Kx as part of the EAI team, we are
better positioned than ever to win new customers and provide additional
solutions to current customers throughout Europe."

    About EAI
    Engineering Animation, Inc. is the leader in Internet-enabled visual
process management, collaboration, analysis and communication solutions for
extended manufacturing enterprises.  EAI's e-Vis.com(TM)
( http://www.e-vis.com ) and VisEPM(TM) solutions help manufacturing companies
drive down costs while improving business practices, efficiency, quality and
time-to-market.  The Company maintains its corporate headquarters and
technology center in Ames, Iowa and has offices worldwide.
    For more information, visit EAI at http://www.eai.com or call
515-296-9908.  To see e-Vis.com go to http://www.e-vis.com