SANTA ANA, CA -- MSC.Software Corp. (NYSE:MNS), a leading global provider of simulation software, services and systems, today announced financial results for the first quarter ended March 31, 2002. -- Revenues for the quarter of $66.4 million (49% increase); -- Reported net loss of $2.4 million or ($0.08) per share; -- Completed the tender offer for Mechanical Dynamics. For the first quarter ended March 31, 2002, MSC.Software reported revenue of $66.4 million, an increase of 49% over revenue of $44.7 million for the first quarter last year. A net loss of $2.4 million or ($0.08) per diluted share was reported in the quarter, compared with net income of $1.4 million or $0.09 per diluted share in the first quarter last year. "Clearly, we are disappointed with the results in the first quarter," said Frank Perna, chairman and chief executive officer of MSC.Software. "The earnings shortfall was due to a combination of revenue mix, a slight slow down in our software business in the international markets and an acceleration of our legal costs associated with the FTC matter as we approach trial. "We are taking immediate steps to restructure our expenses and are confident that we can achieve approximately a 5%-10% decrease in our overall operating expenses for the remainder of 2002," continued Perna. "The acquisition of MDI fits extremely well with our core software positioning in the marketplace and confirms our software focus, which will give us a continuing advantage in the execution of our strategy to help our customers exceed their goals and expectations. "We are seeing confirmation from the market that the potential for Product Lifecycle Management (PLM) is a reality. Companies are working hard to increase the effectiveness of their product development processes. As this trend matures, we continue to strengthen our sales force, which will position us well to respond to the needs of the global manufacturing sector, for software, services and systems." Visit www.mscsoftware.com for more information.