Dassault Systemes Reports Third Quarter Financial Results with Software Revenue up 17%, Total Revenue up 14% and EPS up 14%

Third Quarter Financial and Business Highlights

-- Total revenue EUR 213.8 million, up 14% as reported and in constant currencies

-- Software revenue EUR 183.3 million, up 17% as reported and in constant currencies

-- Process-centric revenue EUR 170.4 million, up 11% as reported and 12% in constant currencies

-- PDM revenue EUR 26.5 million, up 12% as reported and in constant currencies, with PDM software end-user revenue up 33%

-- SolidWorks revenue EUR 43.4 million, up 24% as reported (up 24% in U.S. dollars)

-- EPS EUR 0.32 on U.S. GAAP basis and EPS EUR 0.32 excluding acquisition costs, up 14%

-- Providing initial 2006 financial objectives

Bernard Charles, President and Chief Executive Officer, commented,"Strong growth across our software applications drove our thirdquarter financial performance, enabling Dassault Systemes to report a17% increase in software revenue, and a 14% increase in earnings pershare. We were particularly pleased with the third quarter andyear-to-date progress in the Americas region, where we aresuccessfully further expanding our market presence and increasing ourmarket share. Our record performance in the Americas in 2005 to-datereflects contributions across all our software applications and marketsegments, reflecting strong customer demand for our PLM solutions andthe effectiveness of our partnership with IBM. More specifically,building upon strong growth of CATIA V5, our total PLM software salesrose 28% in the Americas year-to-date. Our performance in V5 PLM wasalso mirrored in the Mainstream market with SolidWorks, where softwarerevenues increased 26% in the Americas during this same time-period.

"DS is on track in 2005 to deliver another year of acceleratingrevenue growth based upon our year-to-date performance and fourthquarter outlook. Looking to 2006 we believe DS is well-positioned tosustain the dynamics of strong revenue and earnings growth as wecontinue to penetrate and enlarge our addressable markets."

Third Quarter Financial Results

Revenue

Total revenue increased 14% as reported and in constant currenciesto EUR 213.8 million in the third quarter of 2005, up from EUR 188.0million in the year-ago quarter. Strong growth in software revenuedrove the year-over-year increase in total revenue. Total softwarerevenue represented 86% of total revenue with service revenueaccounting for the remaining 14% of total revenue in the third quarterof 2005.

Total software revenue increased 17% (as reported and in constantcurrencies) to EUR 183.3 million in the third quarter of 2005, onstrong growth across the Company's software applications. In the thirdquarter of 2004 total software revenue was EUR 156.7 million.Recurring licenses revenue represented 52% of total software revenuein the third quarter of 2005. New CATIA and SolidWorks seats licensedin the third quarter of 2005 increased 12% to 15,717 seats, comparedto 14,002 seats in the year-ago period, with pricing up 3% for CATIAand up 4% in U.S. dollars for SolidWorks.

Service and other revenue decreased 3% as reported and 2% inconstant currencies to EUR 30.5 million in the third quarter of 2005,compared to EUR 31.3 million in the third quarter of 2004, solely dueto customer deferrals related to the execution of several consultingcontracts in Europe. The Company noted that its CMP activity, theChannel Management Provider model, focused on PLM opportunities in thesmall- and medium-sized business (SMB) market, was well on track inthe quarter.

Looking at total revenue by geographic regions, the Americasrepresented 35% of total revenue, Asia was 25% and Europe accountedfor 40% of total revenue in the third quarter of 2005. In theAmericas, total revenue increased 23% as reported and in constantcurrencies on strong year-over-year growth in software revenue amongthe Company's major brands. Similarly, in Asia, total revenueincreased 23% as reported and 24% in constant currencies year overyear, with good contributions from all major brands. In Europe,following a very strong first half performance, total revenueincreased 2% year over year, largely reflecting lower than anticipatedservice revenue as noted above.

Process-centric revenue increased 11% as reported and 12% inconstant currencies in the third quarter of 2005 largely reflectingstrong software growth across design, digital manufacturing and PDMapplications. In the third quarter of 2005, Process-centric revenue,including PDM revenue, totaled EUR 170.4 million, compared to EUR153.0 million in the third quarter of 2004. PDM revenue increased 12%as reported and in constant currencies to EUR 26.5 million, comparedto EUR 23.7 million in the year-ago period, on strong growth insoftware revenue. PDM software end-user revenue increased 33% in the2005 third quarter, compared to the year-ago period. For the 2005third quarter, CATIA licenses increased 7% year over year to 7,712.

In the Mainstream market, SolidWorks revenue increased 24% (24% inU.S. dollars) to EUR 43.4 million in the third quarter of 2005, upfrom EUR 35.0 million in the year-ago quarter. SolidWorks seatslicensed increased 18% to 8,005 licenses.

Operating Income and Margin and EPS

Earnings per diluted share increased 14% to EUR 0.32 in the thirdquarter of 2005, compared to earnings per diluted share of EUR 0.28 inthe third quarter of 2004. Earnings per diluted share excludingacquisition costs increased 14% to EUR 0.32 in the third quarter of2005, compared to earnings per diluted share excluding acquisitioncosts of EUR 0.28 in the year-ago period.

In the third quarter of 2005 operating income increased 10% to EUR50.5 million (23.6% operating margin), compared to EUR 46.1 million inthe year-ago quarter (24.5% operating margin). Operating incomeexcluding acquisition costs increased 10% to EUR 50.8 million in therecently completed quarter, compared to EUR 46.3 million in the thirdquarter of 2004. The operating margin excluding acquisition costs was23.8% in the third quarter of 2005, coming in above DS's objective ona higher level of software revenue. In the year-ago quarter, theoperating margin excluding acquisition costs was 24.6%.

Nine-month Financial Highlights

-- Total revenue EUR 630.3 million, up 13% as reported and up 15% in constant currencies

-- Software revenue EUR 531.4 million, up 14% as reported and up 16% in constant currencies

-- Process-centric revenue EUR 425.6 million, up 10% as reported and up 12% in constant currencies

-- PDM revenue EUR 74.8 million, up 13% as reported and up 15% in constant currencies, with software end-user revenue up 26%

-- SolidWorks revenue EUR 129.9 million, up 24% as reported (up 28% in U.S. dollars)

-- EPS EUR 0.91 on U.S. GAAP basis

-- EPS excluding acquisition costs up 10% to EUR 0.92

Strategy, Technology and Partnerships

Bernard Charles stated, "We completed the acquisition of ABAQUS inearly October. I am pleased to report that the closing process wentvery smoothly. In fact, at the time of the completion of theacquisition, our new organization was ready to hit the ground running,with our simulation teams at both ABAQUS and CATIA working together."

DS completed the acquisition of ABAQUS Inc., the establishedleader in advanced finite element analysis software on October 4,2005. The all-cash purchase price was US$413 million, before cashbalances and tax benefits. ABAQUS, a wholly-owned subsidiary of DS,employs about 500 people worldwide, with its headquarters located inProvidence, RI, USA, and R&D centers in Providence and in Suresnes,France. ABAQUS has 29 offices for technical support, sales andservices, plus a network of distributors in emerging markets.

In a separate press release issued today, ABAQUS announces thatBMW Group has adopted ABAQUS software as the basis for all its vehiclecrashworthiness simulation. The decision comes after an intensivefour-year technical collaboration during which the two companiesworked together to advance ABAQUS software to meet BMW's requirementson accuracy and robustness.

In a separate press release also issued today, DS announces thatSpirit AeroSystems, the world's largest independent supplier ofstructures for commercial aircraft, will use CATIA V5 for design,ENOVIA LCA for product data management, and DELMIA for digitalmanufacturing simulation.

During the quarter DS announced that Northrop Grumman Corporation,the global aerospace and defense company, had reached a key milestonein the development of the U.S. Navy's first digitally designed andproduced aircraft carrier, the CVN-21. As part of this project,Northrop Grumman Newport News has rolled out a 1,700 userimplementation of CATIA and a 2,000 user implementation of ENOVIA. Inaddition, Northrop Grumman Newport News is also planning a migrationto DS V5 solutions.

Working closely with the education community around the world,SolidWorks was pleased to have been selected by the NorwegianEducation System, who will purchase up to 30,000 licenses ofSolidWorks software as part of its program to strengthen the country'smanufacturing industry. It is anticipated that more than 60,000 highschool and junior high school students will learn CAD skills asSolidWorks becomes the most widely taught CAD software in the Nordicregion.

SolidWorks recently announced that its DWGgateway(TM) datatranslation tool now offers the ability to publish AutoCAD designs inthe popular Adobe Portable Document Format (PDF). This new capabilitymakes it easy for design engineers to share designs with anyone,regardless of whether the recipient has AutoCAD software.

The DWGgateway tool enables any AutoCAD software user to open andedit any DWG file. In this way, the DWGgateway software tool fostersopen collaboration and saves users the time and money of unnecessarilyimplementing new products.

DS and Microsoft announced that as part of their strategicalliance, they will make V5 PLM available for Microsoft(R) Windows(R)XP Professional x64 Edition, including versions of CATIA V5, DELMIAV5, ENOVIA V5 and SMARTEAM. These versions will take advantage of thefull power of the Windows 64-bit architecture to enable customers tocreate, analyze and manage very large assemblies and complex products,such as entire automobiles or aircraft. This capability considerablyreduces product development cycles by accelerating design andenhancing design reviews, product optimization and decision support.

DS and IBM have teamed up to integrate IBM Lotus Notes and DS 3DXML technology, which will be delivered with the next release versionof 3D XML Player fully supporting Lotus Notes. The 3D XML Player forLotus Notes gives users outside the engineering department the abilityto enhance collaboration and joint decision-making by sharing productand business information with other knowledge workers from theirdesktops, through the traditional Lotus Notes interface.

DS and IBM recently signed an agreement in services around ProductLifecycle Management designed to help customers accelerate theirbusiness transformations, of which PLM is a key component. Clientswill benefit from the combination of IBM's consulting and projectmanagement skills and DS software technology and technical expertise.This agreement, between IBM Global Service Business Consulting Groupand DS Services, reinforces the nearly 25-year, strategic partnershipbetween DS and IBM.

DS recently achieved a new milestone in its Component ApplicationArchitecture Version 5 (CAA V5) Software Community Program. Theprogram now includes more than 360 applications to be delivered inVersion 5 Release 16 of DS' PLM portfolio. The CAA V5 open softwaredevelopment platform enables customers, partners and independentsoftware companies to design leading-edge applications that seamlesslycomplement DS' PLM portfolio.

In August, Virtools(TM), a company acquired by DS earlier thisyear, announced the availability of Virtools Software Suite 3.5.Virtools Software Suite 3.5, a set of comprehensive softwaredevelopment solutions for building highly interactive 3D content, isthe result of extensive client and partner feedback. Virtools SoftwareSuite 3.5 addresses development and production needs for Virtools'target customers in the industrial, game development and multimediamarkets.

Business Outlook

Thibault de Tersant, Executive Vice President and CFO, stated,"Business opportunities are good. There is strong demand for oursoftware applications and we see this continuing. As a result, we arecomfortable with our revenue growth outlook for 2005 and are raisingour 2005 EPS objective, as we did in the first and second quarters ofthis year.

"We are adjusting our revenue objective for 2005 to reflect theinclusion of ABAQUS following the completion of this acquisition inearly October. Our new objective for 2005, before the deferred revenuewrite-down, is to grow total revenue about 17-18% in constantcurrencies, with approximately EUR 20 million or two points of growthcoming from the inclusion of ABAQUS. Therefore, we are essentiallyreconfirming our previous revenue growth objective of 15-16% which weset at the end of the second quarter.

"We are increasing our EPS growth objective to 15-16% from 12-13%,reflecting better performance in the third quarter and the inclusionof ABAQUS going forward. This objective is given excluding acquisitioncosts and before the deferred revenue write-down.

"Specifically, our objectives as well as key data for the fourthquarter and year are listed below:

-- Fourth quarter total revenue of about EUR 300-305 million, with ABAQUS estimated revenue contribution of about EUR 20 million before the deferred revenue write-down;

-- Fourth quarter EPS excluding acquisition costs of about EUR 0.64-0.66, with ABAQUS estimated contribution of EUR 0.01 before the deferred revenue write-down;

-- 2005 total revenue of about EUR 930-935 million, with ABAQUS estimated revenue contribution of about EUR 20 million before deferred revenue write-down, compared to the previous objective of EUR 910-915 million;

-- 2005 EPS objective, excluding acquisition costs and before deferred revenue write-down, about EUR 1.56-1.58, representing 15-16% growth, compared to our previous EPS objective, excluding acquisition costs, of EUR 1.52-1.53, representing 12-13% year-over-year-growth;

-- 2005 operating margin of about 28.5-29% excluding acquisition costs and deferred revenue write-down (0.2% dilution estimated from ABAQUS before deferred revenue write-down), compared to our previous objective of about 29% for 2005;

-- Estimated deferred revenue write-down of about EUR 10 million for the 2005 fourth quarter;

-- No change to our currency exchange rate assumptions of US$1.25 to 1 euro;

"As has been our practice, we are providing our preliminaryfinancial objectives for 2006. Our 2006 constant currency revenuegrowth objective is about 17-18%, including 7 points of growth fromABAQUS, before the deferred revenue write-down. This leads to a totalrevenue range for 2006 of about EUR 1.105-1.115 billion, before anestimated EUR 8-9 million deferred revenue write-down, assuming aUS$1.25 per euro exchange rate. Looking at profitability in 2006, ourgoals are to deliver a stable operating margin and a similar level ofearnings growth in comparison to 2005, before acquisition costs,deferred revenue write-down and share-based compensation."

Endnotes:

1. All comparative figures are given on a year-over-year basisunless specified otherwise.

2. All financial information is unaudited and reported inaccordance with U.S. generally accepted accounting principles (U.S.GAAP). Additional financial information is also presented that is notin conformity with U.S. GAAP, in particular the presentation ofoperating income, operating margin and earnings per share excludingacquisition costs (acquisition costs are primarily comprised oftechnology amortization in addition to other acquisition-relatedcosts). In addition, certain other financial information, inparticular, the Company's financial objectives presented in theOutlook section of this press release, is also not presented inconformity with U.S. GAAP, in particular the presentation of revenuebefore deferred revenue write-down, and operating income, operatingmargin and earnings per share excluding acquisition costs (acquisitioncosts are primarily comprised of technology amortization in additionto other acquisition-related costs) and before the deferred revenuewrite-down and share-based compensation. The Company has provided inthe tables to this press release and on its websitehttp://www.3ds.com/corporate/investors/ reconciliations between U.S.GAAP and non-U.S. GAAP figures.

3. The Company uses constant currency revenue growth to evaluateits financial performance in comparison to prior periods and as ameasure of expected growth in planning and setting objectives forfuture periods. The Company believes this measure is an importantindicator of the Company's progress and outlook because it provides abetter gauge of the level of change in the business activity as iteliminates any changes arising from currency fluctuations. The Companybelieves the presentation of this measure is relevant and useful forinvestors because it allows investors to view revenue growth in amanner similar to the method used by the Company's management, helpsimprove investors' ability to understand the Company's revenue growth,and makes it easier to compare the Company's results with othercompanies, including competitors, whose reporting currency may bedifferent from Dassault Systemes. Constant currency revenue growth, ascalculated by the Company, may not be comparable to similarly titledmeasures employed by other companies.

Conference call information

Dassault Systemes will host a teleconference call today, Tuesday,October 25, 2005 at 3:00 PM CET/2:00 PM London/9:00 AM New York. Theconference call will be available via the Internet by accessinghttp://www.3ds.com/corporate/investors/. Please go to the website atleast fifteen minutes prior to the call to register, download andinstall any necessary audio software. The webcast teleconference willbe archived for 30 days. Financial information to be discussed in thecall will be available on the Company's website prior to commencementof the teleconference http://www.3ds.com/corporate/investors/.Additional investor information can be accessed athttp://www.3ds.com/corporate/investors/ or by calling DassaultSystemes' Investor Relations at 33.1.40.99.69.24.

Statements above that are not historical facts but expressexpectations or objectives for the future, including but not limitedto statements regarding the Company's: a) 2005 revenue growthobjective in constant currencies, excluding deferred revenuewrite-down; the calculation of a revenue range, before deferredrevenue write-down; 2005 operating margin objective excludingacquisition costs and before deferred revenue write-down and a 2005EPS objective excluding acquisition costs and before deferred revenuewrite-down; b) fourth quarter 2005 revenue before deferred revenuewrite-down and fourth quarter EPS excluding acquisition costs andbefore deferred revenue write-down; c) 2006 revenue growth objectivein constant currencies before deferred revenue write-down, 2006operating margin outlook excluding acquisition costs and beforedeferred revenue and share-based payments, and our 2006 EPS growthoutlook excluding acquisition costs and before deferred revenuewrite-down and share-based payments; and d) ABAQUS estimated 2005fourth quarter revenue and EPS contribution before deferred revenuewrite-down, ABAQUS estimated contribution to our 2006 revenue growthobjective before deferred revenue write-down and ABAQUS estimateddeferred revenue write-down for the fourth quarter 2005 and full year2006 are forward-looking statements (within the meaning of Section 21Eof the 1934 Securities Exchange Act, as amended). Such forward-lookingstatements are based on management's current views and assumptions andinvolve known and unknown risks and uncertainties. Actual results orperformances may differ materially from those in such statements dueto, among other factors: (i) currency fluctuations, particularly thevalue of the U.S. Dollar or Japanese Yen with respect to the euro;(ii) reduced corporate spending on information technology as a resultof changing economic or business conditions that could negativelyaffect market demand for our products and services; (iii) difficultiesor adverse changes affecting our partners or our relationships withour partners, including our longstanding, strategic partner, IBM; (iv)new product developments and technological changes; (v) errors ordefects in our products; (vi) growth in market share by ourcompetitors; and (vii) the realization of any risks related to theintegration of ABAQUS, following the completion of its acquisition inearly October, 2005. Unfavorable changes in any of the above or otherfactors described in the Company's SEC reports, including the Form20-F for the year ended December 31, 2004, which was filed with theSEC on June 28, 2005, could materially affect the Company's financialposition or results of operations.

About Dassault Systemes

As world leader in 3D and PLM (Product Lifecycle Management)solutions, the Dassault Systemes group brings value to more than80,000 customers in 80 countries. A pioneer in the 3D software marketsince 1981, Dassault Systemes develops and markets PLM applicationsoftware and services that support industrial processes and provide a3D vision of the entire life cycle of products from conception tomaintenance. Its offering includes integrated PLM solutions forproduct development (CATIA(R), DELMIA(R), ENOVIA(R), SMARTEAM(R)),mainstream product design tools (SolidWorks(R)), and 3D components(Spatial - ACIS(R)). Dassault Systemes is listed on the Nasdaq (DASTY)and Euronext Paris (#13065, DSY.PA) stock exchanges. For moreinformation, visit http://www.3ds.com
DASSAULT SYSTEMES
NON-U.S. GAAP KEY FIGURES

3rd QUARTER

in millions of Euro, except per share data, headcount and exchange
rates.

3Q05 3Q04 Variation
--------- --------- ----------
Process-Centric excluding PDM 143.9 129.3 11%
PDM 26.5 23.7 12%
Design-Centric 43.4 35.0 24%
Revenue 213.8 188.0 14%
Americas 74.7 60.6 23%
Europe 85.0 83.4 2%
Asia 54.1 44.0 23%
Operating Income (1) 50.8 46.3 10%
Operating Margin (1) 23.8% 24.6%
Net Income (1) 38.0 32.3 18%
EPS (1) 0.32 0.28 14%
Closing Headcount 5,114 4,363 17%

Average Rate USD per Euros 1.22 1.22 0%
Average Rate JPY per Euros 135.6 134.4 1%

(1) Excluding acquisition costs. For U.S. GAAP figures please refer to
reconciliation tables.
NINE MONTHS ENDED

in millions of Euro, except per share data, headcount and exchange
rates.

YTD05 YTD04 Variation
--------- --------- ----------
Process-Centric excluding PDM 425.6 386.0 10%
PDM 74.8 66.1 13%
Design-Centric 129.9 104.6 24%

Revenue 630.3 556.7 13%
Americas 200.6 162.3 24%
Europe 280.4 251.4 12%
Asia 149.3 143.0 4%
Operating Income (1) 151.4 142.8 6%
Operating Margin (1) 24.0% 25.7%
Net Income (1) 107.2 97.4 10%
EPS (1) 0.92 0.84 10%

Average Rate USD per Euros 1.26 1.23 3%
Average Rate JPY per Euros 136.0 133.5 2%

(1) Excluding acquisition costs. For U.S. GAAP figures, please refer
to reconciliation tables
DASSAULT SYSTEMES
CONSOLIDATED STATEMENT OF INCOME DATA PREPARED IN ACCORDANCE
WITH U.S. GAAP
(in millions of Euro, except per share data)

Three Months Ended Nine Months Ended

September September September September
30, 2005 30, 2004 30, 2005 30, 2004
------------ ------------ ----------- -----------
New licenses
revenue 85.8 68.5 241.4 202.4
Recurring licenses
and product
development
revenue 97.5 88.2 290.0 262.1
------------ ------------ ----------- -----------
Software revenue 183.3 156.7 531.4 464.5
Service and other
revenue 30.5 31.3 98.9 92.2
------------ ------------ ----------- -----------
Total Revenue EUR 213.8 EUR 188.0 EUR 630.3 EUR 556.7

Software 5.9 5.2 18.5 15.0
Service and other 26.9 25.3 82.3 75.9
------------ ------------ ----------- -----------
Total Cost of
Revenue EUR 32.8 EUR 30.5 EUR 100.8 EUR 90.9

Gross Profit EUR 181.0 EUR 157.5 EUR 529.5 EUR 465.8

Research and
Development 62.0 55.1 179.9 162.6
Marketing and Sales 54.1 44.8 156.5 125.8
General
Administration 14.1 11.3 41.7 34.6
Acquisition Costs 0.3 0.2 1.1 1.3
------------ ------------ ----------- -----------
Total Research,
Selling,
Administration and
Acquisition
expenses EUR 130.5 EUR 111.4 EUR 379.2 EUR 324.3
============ ============ =========== ===========
Operating
Income (1) EUR 50.5 EUR 46.1 EUR 150.3 EUR 141.5

Financial revenue
and Other 6.9 2.7 12.7 6.9
------------ ------------ ----------- -----------
Income before income
taxes 57.4 48.8 163.0 148.4
Income tax expense (19.6) (16.5) (56.5) (52.1)
------------ ------------ ----------- -----------
Net Income (1) EUR 37.8 EUR 32.3 EUR 106.5 EUR 96.3
============ ============ =========== ===========
Basic net income per
share EUR 0.33 EUR 0.29 EUR 0.94 EUR 0.85
============ ============ =========== ===========
Diluted net income
per share (1) EUR 0.32 EUR 0.28 EUR 0.91 EUR 0.83
============ ============ =========== ===========
Basic weighted
average shares
outstanding (in
millions) 114.1 113.2 113.8 113.2
============ ============ =========== ===========
Diluted weighted
average shares
outstanding (in
millions) 118.0 116.2 117.1 116.0

(1) Excluding acquisition costs, operating income, net income and
diluted EPS would have been as follows:

Operating Income EUR 50.8 EUR 46.3 EUR 151.4 EUR 142.8
============ ============ =========== ===========
Net Income EUR 38.0 EUR 32.3 EUR 107.2 EUR 97.4
============ ============ =========== ===========
Diluted net income
per share EUR 0.32 EUR 0.28 EUR 0.92 EUR 0.84
============ ============ =========== ===========

Supplemental Disclosures Regarding Non-U.S. GAAP FinancialInformation: Excluding Acquisition Costs

The following table sets forth the Company's ConsolidatedStatement of Income Data excluding acquisition costs for the threemonths and nine months ended September 30, 2005. In particular, thetable presents operating income, operating margin and earnings pershare excluding acquisition costs (acquisition costs are primarilycomprised of technology amortization in addition to otheracquisition-related costs).

The Company uses these non-U.S. GAAP measures, among other things,to evaluate the Company's operating performance and for planning andsetting objectives for future periods. The Company believes thesenon-U.S. GAAP measures are useful to investors because they provide analternative method for measuring the operating performance of theCompany's business by isolating the effect of acquisition costs, whichdo not impact the underlying business. In addition, these measures areamong the primary measures used externally by analysts for purposes ofvaluation and for comparing operating performance of the Company toother companies in the industry.

Since these measures of performance are not calculated inaccordance with U.S. GAAP, they should not be considered in isolationof, or as a substitute for, operating income, operating margin andearnings per share including acquisition costs, as an indicator ofoperating performance.
DASSAULT SYSTEMES
NON-U.S. GAAP CONSOLIDATED STATEMENT OF INCOME DATA
PERCENTAGE VARIANCE
(EXCLUDING ACQUISITION COSTS)

(in millions of Euro, except per share data)

Three Months Ended

September 30, September 30, Variation
2005 2004
---------------- --------------- ---------
New licenses revenue 85.8 68.5 25.3%
Recurring licenses and
product development
revenue 97.5 88.2 10.5%
---------------- ---------------
Software revenue 183.3 156.7 17.0%
Service and other revenue 30.5 31.3 (2.6)%
---------------- ---------------
Total Revenue EUR 213.8 EUR 188.0 13.7%

Software 5.9 5.2 13.5%
Service and other 26.9 25.3 6.3%
---------------- ---------------
Total Cost of Revenue EUR 32.8 EUR 30.5 7.5%

Gross Profit EUR 181.0 EUR 157.5 14.9%

Research and Development 62.0 55.1 12.5%
Marketing and Sales 54.1 44.8 20.8%
General Administration 14.1 11.3 24.8%
---------------- ---------------
Total Research, Selling,
Administration EUR 130.2 EUR 111.2 17.1%
================ ===============
Operating Income EUR 50.8 EUR 46.3 9.7%

Financial revenue and Other 6.9 2.7 155.6%
---------------- ---------------
Income before income taxes 57.7 49.0 17.8%
Income tax expense (19.7) (16.7)
---------------- ---------------
Net Income EUR 38.0 EUR 32.3 17.6%
================ ===============
Diluted net income per
share EUR 0.32 EUR 0.28 14.3%
================ ===============
Diluted weighted average
shares outstanding (in
millions) 118.0 116.2
DASSAULT SYSTEMES
CONSOLIDATED STATEMENT OF INCOME DATA
RECONCILIATIONS NON-U.S. GAAP / U.S. GAAP

(in millions of Euro, except per share data)

Three Months Ended

September 30, 2005 September 30, 2004
---------------------------- ---------------------------

Ac- Excluding Ac- Excluding
Reported quisi- Acqui- Reported quisi- Acqui-
Amount tion sition Amount tion sition
Costs Costs Costs Costs
--------- ------- --------- --------- ------- ---------
New licenses
revenue 85.8 85.8 68.5 68.5
Recurring
licenses and
product
develop-ment
revenue 97.5 97.5 88.2 88.2
--------- --------- --------- ---------
Software
revenue 183.3 183.3 156.7 156.7
Service and
other revenue 30.5 30.5 31.3 31.3
--------- --------- --------- ---------
Total
Revenue EUR 213.8 EUR 213.8 EUR 188.0 EUR 188.0

Software 5.9 5.9 5.2 5.2
Service and
other 26.9 26.9 25.3 25.3
--------- --------- --------- ---------
Total Cost
of Revenue EUR 32.8 EUR 32.8 EUR 30.5 EUR 30.5

Gross
Profit EUR 181.0 EUR 181.0 EUR 157.5 EUR 157.5

Research and
Develop-ment 62.0 62.0 55.1 55.1
Marketing and
Sales 54.1 54.1 44.8 44.8
General
Admini-
stration 14.1 14.1 11.3 11.3
Acquisition
Costs 0.3 (0.3) - 0.2 (0.2) -
--------- --------- --------- ---------
Total
Research,
Selling,
Admini-
stration EUR 130.5 EUR 130.2 EUR 111.4 EUR 111.2
========= ========= ========= =========
Operating
Income EUR 50.5 EUR 50.8 EUR 46.1 EUR 46.3

Financial
revenue and
Other 6.9 6.9 2.7 2.7
--------- --------- --------- ---------
Income before
income taxes 57.4 57.7 48.8 49.0
Income tax
expense (19.6) (0.1) (19.7) (16.5) (0.2) (16.7)
--------- --------- --------- ---------
Net Income EUR 37.8 EUR 38.0 EUR 32.3 EUR 32.3
========= ========= ========= =========
Diluted net
income per
share EUR 0.32 EUR 0.32 EUR 0.28 EUR 0.28
========= ========= ========= =========
Diluted
weighted
average
shares out-
standing (in
millions) 118.0 118.0 116.2 116.2
DASSAULT SYSTEMES
NON-U.S. GAAP CONSOLIDATED STATEMENT OF INCOME DATA
PERCENTAGE VARIANCE
(EXCLUDING ACQUISITION COSTS)

(in millions of Euro, except per share data)

Nine Months Ended

September 30, September 30,
2005 2004 Variation
---------------- --------------- ---------
New licenses revenue 241.4 202.4 19.3%
Recurring licenses and
product development
revenue 290.0 262.1 10.6%
---------------- ---------------
Software revenue 531.4 464.5 14.4%
Service and other revenue 98.9 92.2 7.3%
---------------- ---------------
Total Revenue EUR 630.3 EUR 556.7 13.2%

Software 18.5 15.0 23.3%
Service and other 82.3 75.9 8.4%
---------------- ---------------
Total Cost of Revenue EUR 100.8 EUR 90.9 10.9%

Gross Profit EUR 529.5 EUR 465.8 13.7%

Research and Development 179.9 162.6 10.6%
Marketing and Sales 156.5 125.8 24.4%
General Administration 41.7 34.6 20.5%
---------------- ---------------
Total Research, Selling,
Administration EUR 378.1 EUR 323.0 17.1%
================ ===============
Operating Income EUR 151.4 EUR 142.8 6.0%

Financial revenue and Other 12.7 6.9 84.1%
---------------- ---------------
Income before income taxes 164.1 149.7 9.6%
Income tax expense (56.9) (52.3)
---------------- ---------------
Net Income EUR 107.2 EUR 97.4 10.1%
================ ===============
Diluted net income per
share EUR 0.92 EUR 0.84 9.5%
================ ===============
Diluted weighted average
shares outstanding (in
millions) 117.1 116.0
DASSAULT SYSTEMES
CONSOLIDATED STATEMENT OF INCOME DATA
RECONCILIATIONS NON-U.S. GAAP / U.S. GAAP

(in millions of Euro, except per share data)

Nine Months Ended

September 30, 2005 September 30, 2004
--------------------------- ---------------------------

Excluding Ex-
Reported Acqui- Acqui- Reported Acqui- cluding
Amount sition sition Amount sition Acqui-
Costs Costs Costs sition
Costs
--------- ------- --------- --------- ------- ---------
New licenses
revenue 241.4 241.4 202.4 202.4
Recurring
licenses and
product
development
revenue 290.0 290.0 262.1 262.1
Software
revenue 531.4 531.4 464.5 464.5
Service and
other revenue 98.9 98.9 92.2 92.2
--------- --------- --------- ---------
Total
Revenue EUR 630.3 EUR 630.3 EUR 556.7 EUR 556.7

Software 18.5 18.5 15.0 15.0
Service and
other 82.3 82.3 75.9 75.9
--------- --------- --------- ---------
Total Cost
of Revenue EUR 100.8 EUR 100.8 EUR 90.9 EUR 90.9

Gross
Profit EUR 529.5 EUR 529.5 EUR 465.8 EUR 465.8

Research and
Development 179.9 179.9 162.6 162.6
Marketing and
Sales 156.5 156.5 125.8 125.8
General
Adminis-
tration 41.7 41.7 34.6 34.6
Acquisition
Costs 1.1 (1.1) - 1.3 (1.3) -
--------- --------- --------- ---------
Total
Research,
Selling,
Adminis-
tration EUR 379.2 EUR 378.1 EUR 324.3 EUR 323.0
========= ========= ========= =========
Operating
Income EUR 150.3 EUR 151.4 EUR 141.5 EUR 142.8

Financial
revenue and
Other 12.7 12.7 6.9 6.9
--------- --------- --------- ---------
Income before
income taxes 163.0 164.1 148.4 149.7
Income tax
expense (56.5) (0.4) (56.9) (52.1) (0.2) (52.3)
--------- --------- --------- ---------
Net
Income EUR 106.5 EUR 107.2 EUR 96.3 EUR 97.4
========= ========= ========= =========
Diluted net
income per
share EUR 0.91 EUR 0.92 EUR 0.83 EUR 0.84
========= ========= ========= =========
Diluted
weighted
average
shares
outstanding
(in millions) 117.1 117.1 116.0 116.0
DASSAULT SYSTEMES
CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions of Euro)

September 30, December 31,
2005 2004
-------------- --------------
ASSETS
Cash and short-term investments 651.4 552.8
Accounts receivable, net 188.7 237.8
Other assets 418.2 308.6
-------------- --------------
Total assets EUR 1,258.3 EUR 1,099.2

LIABILITIES
AND SHAREHOLDERS' EQUITY
Total liabilities 370.6 340.0
Shareholders' equity 887.7 759.2
-------------- --------------
Total liabilities and shareholders' EUR 1,258.3 EUR 1,099.2
equity
DASSAULT SYSTEMES
CONDENSED CASH FLOW STATEMENT

(in millions of Euro)

Three Months ended Nine Months ended

September September Vari- September September Vari-
30, 2005 30, 2004 ation 30, 2005 30, 2004 ation
--------- --------- ------ --------- --------- ------
Net Profit 37.8 32.3 5.5 106.5 96.3 10.2
Changes in
working capital
and non-cash
P&L items 3.4 (2.6) 6.0 53.3 74.4 (21.1)
--------- --------- ------ --------- --------- ------
Net Cash
provided by
operating
activities 41.2 29.7 11.5 159.8 170.7 (10.9)

Acquisition and
sale of assets (6.9) (7.1) 0.2 (22.2) (17.2) (5.0)
ST invest-ments (7.0) 1.5 (8.5) (13.4) 5.5 (18.9)
Acquisition net
of cash (1.4) (1.7) 0.3 (24.4) (2.8) (21.6)
Loans (1.0) 0.0 (1.0) (1.9) (4.7) 2.8
--------- --------- ------ --------- --------- ------
Net Cash
provided used
in investing
activities (16.3) (7.3) (9.0) (61.9) (19.2) (42.7)

Share repurchase
and proceeds
from stocks
options
exercise, net (12.3) (13.7) 1.4 3.1 (1.4) 4.5
Dividend 0.0 0.0 0.0 (43.1) (38.4) (4.7)
--------- --------- ------ --------- --------- ------
Net Cash
provided used
in financing
activities (12.3) (13.7) 1.4 (40.0) (39.8) (0.2)

Effect of
exchange rate
changes on cash (0.8) (0.4) (0.4) 25.3 4.8 20.5
========= ========= ====== ========= ========= ======
Increase
(Decrease) in
cash & cash
equivalents 11.8 8.3 3.5 83.2 116.5 (33.3)

Cash and cash
equivalents at
beginning of
period 612.5 527.8 84.7 541.1 419.6 121.5

Cash and cash
equivalents at
end of period 624.3 536.1 88.2 624.3 536.1 88.2