The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

Nevada Automotive Test Center Implements New Software in Military Vehicle Project

27 June 2000

Nevada Automotive Test Center Implements ADAMS(R) Functional Virtual Prototyping Software in Military Vehicle Demonstrator Project; Initial Contract Worth $480,000 to Mechanical Dynamics

    ANN ARBOR, Mich. - With the successful implementation of ADAMS functional 
virtual prototyping software in a recent U.S. Marine Corps project at the Nevada 
Automotive Test Center, Mechanical Dynamics, Inc. is extending its vehicle 
simulation expertise into the military truck market.

    NATC, located near Carson City, Nevada, was contracted by the Naval
Surface Warfare Center, Carderock Division, to design and build prototype 10-
wheel-drive vehicle technology demonstrators for the Logistics Vehicle System
Replacement (LVSR) program.  Tested against mission scenarios, the performance
of the technology demonstrators is evaluated and designs are optimized to
allow the USMC to evaluate a range of "off-the-shelf" solutions.  Data from
these evaluations is utilized to support Marine Corps development of the
performance parameters and specifications for the LVSR.  These parameters and
specifications can then be provided to contractors bidding on and
manufacturing the actual vehicles.

    "NATC's use of ADAMS in this military vehicle project is a natural
extension of Mechanical Dynamics' expertise in system-level functional virtual
prototyping for the automotive industry," said Michael E. Korybalski, chairman
and chief executive officer of Mechanical Dynamics.  "The demonstrators are
complex vehicles featuring innovative, state-of-the-art technologies.  What we
learn from this project will also benefit our plan to provide our customers
with the Functional Digital Car."

    After a competitive selection process, NATC chose ADAMS to develop models
representing various technologies available in the demonstrators, including
suspensions, mechanical systems, and electronic displays.  NATC's initial
contract with Mechanical Dynamics was worth approximately $480,000, with
follow-on investment anticipated for additional specifications and support.
Roughly half of the project revenue has been recognized through the second
quarter of 2000.

    Henry Hodges Jr., president of NATC and Hodges Transportation, NATC's
parent company, said, "ADAMS offered the best technology for the LVSR project.
It's template-based and offers an integrated solution.  Using ADAMS, we were
able to design and build three demonstrators in less than a year."

    Hodges said the ADAMS models will have a positive benefit for companies
who bid on building the final vehicle design.  "They will be able to implement
the lessons we learned from the technology demonstration program, thereby
reducing their development costs and efforts," he explained.  "They can be
more competitive and effective, and will be able to quickly and more easily
determine whether their solution will meet Marine Corps requirements."

    According to Hodges, the technologies represented by the demonstrators --
such as integrated electronic controls, flat-panel displays, and single-
lubrication oil systems -- meet many of the Marines' 21st century
requirements.

    Captain William Shannon, USMC project officer for the LVSR program, said,
"The Marine Corps must employ the best technology available in order to
procure future vehicles and systems for maximum performance.  The use of
modeling and visualization tools allows us to evaluate, with more accuracy
than ever before, how these designs will operate in mission-critical
situations."

    About NATC

    A division of Hodges Transportation, Inc., the Nevada Automotive Test
Center was founded in 1957 and is one of the largest independent proving
grounds in the world, with more than 3,000 miles of test courses and terrain
conditions which represent terrains found worldwide.  NATC conducts
development and certification tests on commercial and military vehicles and
has accumulated more than 45 million test miles on thousands of different
vehicle systems ranging from motorcycles and hybrid electric vehicles to sport
utility vehicles, construction equipment, and military combat vehicles.
Prior to the LVSR, NATC developed technology demonstrators for the USMC Medium
Tactical Vehicle Replacement (MTVR) program.

    Along with its primary location near Carson City, Nevada, NATC has offices
in Troy, Michigan and Quantico, Virginia, and a dedicated winter testing
facility near West Yellowstone, Montana.  The company's website is
http://www.natc-ht.com .

    About Mechanical Dynamics

    Mechanical Dynamics pioneered the field of mechanical system simulation
with its market-leading ADAMS(R) software, and has remained 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.
ADAMS users also take advantage of a full range of implementation services,
including consulting and training.  In this way, Mechanical Dynamics 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.

    Already the de facto standard for functional virtual prototyping in the
automotive industry, Mechanical Dynamics is expanding its offerings toward the
concept of a Functional Digital Car(TM), which will allow simulation of a
complete vehicle including chassis, engine, driveline, and body.  Besides
providing insight into how the overall system and its components move, the
Functional Digital Car will give users an understanding of how that movement
affects packaging, comfort, vibration, noise, and component durability.

    Except for historical information contained herein, some matters discussed
in this news release constitute forward-looking statements that 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.