SDRC Announces SteinhilberSchwehr as Major I-DEAS® Distributor

- SteinhilberSchwehr Commits 15 Million DM ($7 Million, USD) in I?DEAS License Business to SDRC;
SDRC announces new channel alliance program -

CINCINNATI-February 26, 2001-SDRC (Nasdaq: SDRC) today announced a new, worldwide channel alliance program, driving the majority of its MDA business through indirect channels, while focusing the company's direct sales resource on expanding enterprise accounts. The new model focuses on leveraging the channel's vertical industry and application experience, specialized services and SDRC's production proven solutions, including I-DEAS®, Metaphase®, Accelis and today's announced I-DEAS® Enterprise™, for maximum customer benefit.

A primary example of this program is SDRC's new assignment of its Central European MDA business to SteinhilberSchwehr GmbH. Recently merging with systaix GmbH, SteinhilberSchwehr will be a major force in providing MDA solutions in central Europe, committing 15 million DM ($7M, USA) in license and services business to SDRC.

"Global competition has placed enormous economic pressures on companies in Central Europe," said Karl-Heinz Eberle, general manager, SteinhilberSchwehr GmbH. "Our recent merger with systaix GmbH allows us to maximize and complement the professional resources of these two companies. By becoming an integral part of the SDRC sales strategy, we are confident that we can meet, or exceed, the changing requirements of our customers."

With the new program, the channel becomes an extension of SDRC's direct sales force to maximize value into the supply chain. By leveraging I-DEAS and Metaphase customers, such as Lockheed Martin and Boeing (aerospace), Land Rover and Mazda (automotive), Sandvik and Briggs & Stratton (industrial machinery), SaabTech Electronics and Seagate (electronics), the channel is aligned to capitalize and expand the deployment of SDRC's solutions within the supply chain in these vertical industries. With new solution offerings, such as I-DEAS Enterprise, the channel can now provide suppliers with the capability to seamlessly integrate and collaborate directly with their OEMs in all phases of product development.

"We believe I-DEAS Enterprise may be the most significant new CAD tool since solid modeling," said Tom McKasson, president, Acuity. "I-DEAS Enterprise provides us with a unique opportunity to expand product development solutions for our customers beyond today's CAD, CAM and CAE tools. I-DEAS Enterprise will allow our customers to collaborate with their design partners and supply chain in an unprecedented real-time fashion without geographic bounds."

Currently, SDRC has approximately 150 global channel alliance partners that represented over 35% of SDRC's MDA revenues in 2000. Specifically, Asia Pacific's I-DEAS license revenue grew 34%, with a 68% growth in design seats, in 2000 over 1999.

"Our philosophy to increase the number of channel alliance partners will be based on quality, not quantity," said Ralph L. Genesi, vice president in charge of industry and channel sales, worldwide operations. "Our new program provides focus to SDRC's channel alliances and the opportunity to increase these numbers in all industries and regions. By expanding our indirect channel, minimizing geographic and industry overlap and aligning it to assist our direct sales force, we anticipate expanding our MDA customers with enhanced support throughout 2001."

"ALACAD is greatly encouraged by the new VAR channel sales model implemented recently by SDRC," said Kirk Newell, president of ALACAD, headquartered in Birmingham, Alabama. "We are convinced that this new sales model, and the expanded array of exciting new products will offer more opportunity for success with SDRC than ever before."

SDRC is actively investigating and recruiting new channel alliances that conform to its new channel philosophy and strategy in all industries and geographies.

About SDRC
SDRC (Structural Dynamics Research Corporation), with headquarters in Ohio, provides software solutions and services that propel manufacturers to increased business competitiveness through the development of a web-based, collaborative environment for product development. SDRC employs more than 2,500 people worldwide, with 64 offices in 18 countries throughout North America, Europe, and Asia/Pacific.


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