The ESEC program for day one features speakers and thought-leaders from pioneering organizations in the global energy industry. Among the keynote presenters are Mark Peters of Gulf Publishing, which sponsors events and publishes information dedicated to the energy sector (including Hydrocarbon Processing), on the state of the industry, trends and opportunities; Washington Geraldelli of major Brazilian oil producer PETROBRAS (CENPES) highlighting refining and processing; Roberto Ruiz of the process burners group at leading industrial combustion technology company John Zink speaking on pollution control and combustion systems; Grant Bromhal from NETL in the U.S. Department of Energy speaking on carbon sequestration; Scott Parent at GE Gasification, one of the world's leading providers of both gasification and power generation technologies, discussing renewable energy; Roger Basu from marine standards developer American Bureau of Shipping on engineering challenges in sea keeping; and Jim Cashman, president and CEO of ANSYS, Inc. presenting on innovation in energy and the role of engineering simulation.

Day two features users of ANSYS software presenting leading-edge applications from real-world case studies that showcase ways to apply engineering simulation to maximum effect. There are three technical tracks: upstream and production, refining and processing, and renewables and environment. Multiple discussion forums will provide attendees with the opportunity to drill further into each of six pivotal subject areas (multiphysics, LNG -- gasification, high-performance computing, flow assurance, equipment and reactor design, and offshore structures), share and debate ideas, and learn how to maximize the use of engineering simulation in this rapidly developing industry sector.

A technology pavilion at ESEC will feature a wide range of complementary hardware and software suppliers. There is also an exciting social program planned for delegates and partners.

ESEC will uniquely bring together leading technology solutions providers, industry experts and thought-leaders in the energy industry under one roof to hear how computational technology and engineering simulation software can accurately and efficiently test and predict operational efficacy and environmental impact to reduce design and development times, minimize costs, and ensure regulatory compliance.

To register for the event or to view the agenda, visit the event website at http://www.ansys.com/esec. For questions or further information, send email to Ahmad Haidari at ahmad.haidari@ansys.com.

About ANSYS, Inc.

ANSYS, Inc., founded in 1970, develops and globally markets engineering simulation software and technologies widely used by engineers and designers across a broad spectrum of industries. The Company focuses on the development of open and flexible solutions that enable users to analyze designs directly on the desktop, providing a common platform for fast, efficient and cost-conscious product development, from design concept to final-stage testing and validation. The Company and its global network of channel partners provide sales, support and training for customers. Headquartered in Canonsburg, Pennsylvania, U.S.A., with more than 60 strategic sales locations throughout the world, ANSYS, Inc. and its subsidiaries employ approximately 1,700 people and distribute ANSYS products through a network of channel partners in over 40 countries. Visit www.ansys.com for more information.

ANSYS, ANSYS Workbench, Ansoft, AUTODYN, CFX, FLUENT and any and all ANSYS, Inc. brand, product, service and feature names, logos and slogans are registered trademarks or trademarks of ANSYS, Inc. or its subsidiaries in the United States or other countries. All other brand, product, service and feature names or trademarks are the property of their respective owners.

SOURCE: ANSYS, Inc.

ANSYS, Inc. 
Media: Kelly Wall, 724-514-3076 
kelly.wall@ansys.com 
or 
Investors: Annette Arribas, 724-514-1782 
annette.arribas@ansys.com

"Aside from the technological feat of solving a problem so large, this is another milestone for ANSYS in providing engineering simulation tools that offer quality results and ease of use," said Jim Cashman, president and CEO of ANSYS, Inc. "Quality is sacrificed anytime an engineer is forced, due to technological limitations, to solve a part of a system, rather than a whole system. This achievement is yet another step toward the goal of simulating complex problems without adversely impacting results."

For the 1 billion cell simulation, engineers from two prominent Italian engineering organizations worked alongside Dr. Viola to perform the study. Raffaele Ponzini represented CILEA (the inter-university consortium for information and communication technologies, named Consorzio Interuniversitario Lombardo per L'Elaborazione Automatica), an organization that made available its supercomputer Lagrange, ranked among the most powerful in the world, to power the simulation. Giuseppe Passoni represented the Politecnico di Milano (Polytechnic of Milan), an institution internationally renowned for its expertise in fluid dynamics. In addition, the Regione Lombardia (regional government in Lombardy, Italy) provided finance for the project.

Simulation of an America's Cup racing yacht has the potential to include some of the most complex physics effects possible, with hydrodynamic and aerodynamic fluid flow and stiffness among the structural physics involved. The 1 billion cell-plus simulation case focused on the aerodynamic impact of wind on the America's Cup racing yacht sailing downwind, with a particular emphasis on the mainsail and an asymmetrical spinnaker. A reconstructed fluid dynamics geometry was used for the study based on work done using a wind tunnel at the Politecnico di Milano. The supercomputer used was CILEA's HP Cluster Platform 3000BL with Linux(R), a system equipped with 208 HP ProLiant BL460c server blades and Intel(R) Xeon(R) 3.166 GHz quad-core central processing units (CPUs). Total peak performance of the system approached 22 teraflops (22 thousand billion floating point operations) per second; the system has recently been ranked number 135 on TOP500's list of supercomputers.

The huge analysis was completed in 170 hours, a little more than a week, achieved by theparallel processing performance of the softwareon the highly scaled computing resource. This time frame is considered commercially viable when the value of the complex problem solution is mission critical. The simulation results were compared to experimental wind tunnel testing data to benchmark the accuracy, with good agreement being found -- confirming the capabilities of fluid dynamics software from ANSYS to operate well at even this most complex and demanding level of engineering simulation.

"Our research indicates that this is among the world's first applied engineering simulations using a single mesh of more than 1 billion cells performed with commercial software," said Dr. Viola. "Our dedicated and able team has brought together its expertise in various areas to help us achieve a truly significant moment in engineering. The possibilities for engineering simulation using high-performance computing are massive, and I'm sure we will see new groundbreaking design developments across industry by those following on from our work."

Such advances in computing power unlock the potential to dramatically increase engineering simulation capabilities. By partnering with key hardware vendors, ANSYS delivers on its commitment to engineered scalability and in providing customers with the best engineering simulation solutions available.

"ANSYS has played a key role in achieving this milestone at the leading edge of what is possible today in our industry," said Cashman "The ANSYS vision challenges us to continually drive to improve our products, and to take our technology solutions to the next level to meet customer needs. Our software has been specifically engineered to scale from the desktop to the largest multi-processor supercomputers, and it's extremely fulfilling to see our efforts validated by this major milestone. Without question, the demand for larger, more-detailed simulations will continue to grow, and today's achievement shows that we are well-positioned to meet this need."

For downloadable images, visit http://www.ansys.com/newsimages.

About CILEA Interuniversity Consortium

CILEA is a consortium of 10 universities in Lombardy, established in 1974. The ItalianMinistry of Universities and Research also belongs to the Consortium. CILEA is among the most advanced supercomputing centers in Europe. According to its statute, CILEA has many different purposes. Among them, it promotes the use of the most advanced computing systems in scientific and technological research, both public and private. It provides high-performance computing systems for national research. It promotes technology transfer in the field of information and communication technology. It creates, maintains and manages information systems for the national education and research system. All CILEA's services are offered to universities, public agencies and private companies.

About ANSYS, Inc.

ANSYS, Inc., founded in 1970, develops and globally markets engineering simulation software and technologies widely used by engineers and designers across a broad spectrum of industries. The Company focuses on the development of open and flexible solutions that enable users to analyze designs directly on the desktop, providing a common platform for fast, efficient and cost-conscious product development, from design concept to final-stage testing and validation. The Company and its global network of channel partners provide sales, support and training for customers. Headquartered in Canonsburg, Pennsylvania, U.S.A., with more than 60 strategic sales locations throughout the world, ANSYS, Inc. and its subsidiaries employ approximately 1,700 people and distribute ANSYS products through a network of channel partners in over 40 countries. Visit www.ansys.com for more information.

ANSYS, ANSYS Workbench, Ansoft, AUTODYN, CFX, FLUENT, HFSS and any and all ANSYS, Inc. brand, product, service and feature names, logos and slogans are registered trademarks or trademarks of ANSYS, Inc. or its subsidiaries in the United States or other countries. All other brand, product, service and feature names or trademarks are the property of their respective owners.

SOURCE: ANSYS, Inc.

ANSYS, Inc. 
Media: Kelly Wall, 724-514-3076 
kelly.wall@ansys.com 
or 
Investors: Annette Arribas, 724-514-1782 
annette.arribas@ansys.com

ANSYS' third quarter and year-to-date 2008 financial results are presented below. The non-GAAP results exclude the income statement effects of stock-based compensation, purchase accounting for deferred revenue and acquisition-related amortization of intangible assets. Non-GAAP and GAAP results reflect:

-- Total non-GAAP revenue of $128.8 million in the third quarter of 2008 as compared to $94.0 million in the third quarter of 2007; total non-GAAP revenue of $349.6 million in the first nine months of 2008 as compared to $275.9 million in the first nine months of 2007; total GAAP revenue of $122.2 million in the third quarter of 2008 as compared to $94.0 million in the third quarter of 2007; total GAAP revenue of $343.0 million in the first nine months of 2008 as compared to $274.1 million in the first nine months of 2007;

-- A non-GAAP operating profit margin of 45.6% in the third quarter of 2008 as compared to 43.8% in the third quarter of 2007; a non-GAAP operating profit margin of 47.0% in the first nine months of 2008 as compared to 43.3% in the first nine months of 2007; a GAAP operating profit margin of 31.3% in the third quarter of 2008 as compared to 33.6% in the third quarter of 2007; a GAAP operating profit margin of 36.1% in the first nine months of 2008 as compared to 32.4% in the first nine months of 2007;

-- Non-GAAP net income of $38.7 million in the third quarter of 2008 as compared to $25.0 million in the third quarter of 2007; non-GAAP net income of $105.8 million in the first nine months of 2008 as compared to $73.0 million in the first nine months of 2007; GAAP net income of $25.8 million in the third quarter of 2008 as compared to GAAP net income of $18.7 million in the third quarter of 2007; GAAP net income of $79.8 million in the first nine months of 2008 as compared to GAAP net income of $53.1 million in the first nine months of 2007; and

-- Non-GAAP diluted earnings per share of $0.43 in the third quarter of 2008 as compared to $0.31 in the third quarter of 2007; non-GAAP diluted earnings per share of $1.25 in the first nine months of 2008 as compared to $0.90 in the first nine months of 2007; GAAP diluted earnings per share of $0.29 in the third quarter of 2008 as compared to GAAP diluted earnings per share of $0.23 in the third quarter of 2007; GAAP diluted earnings per share of $0.94 in the first nine months of 2008 as compared to GAAP diluted earnings per share of $0.66 in the first nine months of 2007.

-- Operating cash flows of $42.7 million in the third quarter of 2008 as compared to $26.3 million in the third quarter of 2007; operating cash flows of $135.0 million in the first nine months of 2008 as compared to operating cash flows of $85.5 million in the first nine months of 2007.

The Company's GAAP results reflect stock-based compensation charges of approximately $2.8 million ($2.3 million after tax), or $0.03 diluted earnings per share, for the third quarter of 2008 and approximately $8.7 million ($7.0 million after tax), or $0.08 diluted earnings per share, for the first nine months of 2008.

The non-GAAP financial results highlighted above, and the non-GAAP financial outlook for 2008 and 2009 discussed below, represent non-GAAP financial measures. A reconciliation of these measures to the appropriate GAAP measures, for the three months and nine months ended September 30, 2008 and 2007, and for the 2008 and 2009 financial outlook, is included in the condensed financial information included in this release.

Cashman continued, "Recently, we held our ANSYS 2008 International Users Conference, along with a number of regional user conferences throughout the globe. We received enthusiastic responses from customers and partners not only to our upcoming product launches, but also to our long-term vision and product strategy. We believe that the continued strength of our financial performance validates our strategy to engage customers at new levels driven by the breadth and depth of our world-class simulation capabilities. It also reinforces the importance of continued focus on our customers and their increasingly complex challenges as we build the foundation for the future."

Cashman concluded by stating, "While we continue to remain optimistic about our near term outlook, and more importantly, our long-term future, we also are faced with the realities and challenges that stem from the economic uncertainty that currently exists across many markets. In spite of these, and as we have demonstrated in the past, we have a combination of internal disciplines and good business visibility which we will use to direct our focus and resources toward delivering results in line with our current outlook for 2009. Our efforts over the last several years have positioned us with a vast array of technologies that set us apart in the industry, continue to bring us new business and increase the adoption rates of ANSYS solutions with our existing customer base. While a great deal of work remains to be done, our strategies and vision have continued to be validated. The opportunity over the long haul appears to be solidifying, and we believe that the ANSYS trajectory of future technology, coupled with our focus on execution and understanding of the business drivers, should enable us to cope with current and future challenges. This is a real testament to all of our employees, partners and expanding array of customers who have propelled us in this endeavor. As we enter into the close of this year, we are committed to continuing to focus and invest to support the needs of our customers and our business, all with an eye toward generating long-term stockholder value."

Management's Remaining 2008 and Initial 2009 Financial Outlook

The Company has provided its 2008 and 2009 revenue and earnings per share guidance below. The revenue and earnings per share guidance is provided on both a GAAP basis and a non-GAAP basis. Non-GAAP revenue and non-GAAP diluted earnings per share exclude charges for stock-based compensation, as well as the income statement effects of purchase accounting for deferred revenue and acquisition-related amortization of intangible assets.

Fourth Quarter 2008 Guidance

The Company currently expects the following for the quarter ending December 31, 2008:

-- GAAP revenue in the range of $137 - $141 million

-- Non-GAAP revenue in the range of $145 - $149 million

-- GAAP diluted earnings per share of $0.26 - $0.29

-- Non-GAAP diluted earnings per share of $0.43 - $0.45

Fiscal Year 2008 Guidance

The Company currently expects the following for the fiscal year ending December 31, 2008:

-- GAAP revenue in the range of $480 - $484 million

-- Non-GAAP revenue in the range of $494 - $499 million

-- GAAP diluted earnings per share of $1.20 - $1.23

-- Non-GAAP diluted earnings per share of $1.68 - $1.70

Fiscal Year 2009 Initial Guidance

The Company currently expects the following for the fiscal year ending December 31, 2009:

-- GAAP revenue in the range of $602 - $622 million

-- Non-GAAP revenue in the range of $610 - $630 million

-- GAAP diluted earnings per share of $1.30 - $1.44

-- Non-GAAP diluted earnings per share of $1.84 - $1.90

Non-GAAP revenue and diluted earnings per share are supplemental financial measures and should not be considered as a substitute for, or superior to, revenue and diluted earnings per share determined in accordance with GAAP.

Conference Call Information

ANSYS will hold a conference call at 10:30 a.m. Eastern Time on November 6, 2008 to discuss third quarter results. To participate in the live conference call, dial 888-631-3389 (US & CAN) or 913-312-9305 (INT'L) and enter the passcode "ANSYS" or "26797". The call will be recorded and a replay will be available approximately two hours after the call ends. The replay will be available for one week by dialing 888-203-1112 (US & CAN) or 719-457-0820 (INT'L) and entering the passcode "ANSYS" or "26797". The archived webcast can be accessed, along with other financial information, on ANSYS' website at http://www.ansys.com/corporate/investors.asp.

Use of Non-GAAP Measures

The Company provides non-GAAP revenue, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share as supplemental measures to GAAP regarding the Company's operational performance. These financial measures exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. A detailed explanation of each of the adjustments to such financial measures is described below. This press release also contains a reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measure.

Management uses non-GAAP financial measures (a) to evaluate the Company's historical and prospective financial performance as well as its performance relative to its competitors, (b)to set internal sales targets and spending budgets, (c) to allocate resources, (d) to measure operational profitability and the accuracy of forecasting, (e) to assess financial discipline over operational expenditures and (f) as an important factor in determining variable compensation for management and its employees. In addition, many financial analysts that follow our Company focus on and publish both historical results and future projections based on non-GAAP financial measures. We believe that it is in the best interest of our investors to provide this information to analysts so that they accurately report the non-GAAP financial information. Moreover, investors have historically requested and the Company has historically reported these non-GAAP financial measures as a means of providing consistent and comparable information with past reports of financial results.

While management believes that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, are not reported by all of the Company's competitors and may not be directly comparable to similarly titled measures of the Company's competitors due to potential differences in the exact method of calculation. The Company compensates for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures.

The adjustments to these non-GAAP financial measures, and the basis for such adjustments, are outlined below:

Purchase accounting for deferred revenue. As announced on July 31, 2008, ANSYS acquired Ansoft Corporation. In accordance with the fair value provisions of EITF 01-3, "Accounting in a Business Combination for Deferred Revenue of an Acquiree," acquired deferred revenue of approximately $7.5 million was recorded on the opening balance sheet, which was approximately $23.5 million lower than the historical carrying value. Although this purchase accounting requirement has no impact on the Company's business or cash flow, it adversely impacts the Company's reported GAAP revenue primarily for the first twelve months post-acquisition. In order to provide investors with financial information that facilitates comparison of both historical and future results, the Company has provided non-GAAP financial measures which exclude the impact of the purchase accounting adjustment. The Company believes that this non-GAAP financial adjustment is useful to investors because it allows investors to (a) evaluate the effectiveness of the methodology and information used by management in its financial and operational decision-making and (b)to compare past and future reports of financial results of the Company as the revenue reduction related to acquired deferred revenue will not recur when related annual lease licenses and software maintenance contracts are renewed in future periods.

Amortization of intangibles from acquisitions and its related tax impact. The Company incurs amortization of intangibles, included in its GAAP presentation of amortization of software and acquired technology, and amortization expense, related to various acquisitions it has made in recent years. Management excludes these expenses and their related tax impact for the purpose of calculating non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when it evaluates the continuing operational performance of the Company because these costs are fixed at the time of an acquisition, are then amortized over a period of several years after the acquisition and generally cannot be changed or influenced by management after the acquisition. Accordingly, management does not consider these expenses for purposes of evaluating the performance of the Company during the applicable time period after the acquisition, and it excludes such expenses when making decisions to allocate resources. The Company believes that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the effectiveness of the methodology and information used by management in its financial and operational decision-making and (b)compare past reports of financial results of the Company as the Company has historically reported these non-GAAP financial measures.

Stock-based compensation expense and its related tax impact. The Company incurs expense related to stock-based compensation included in its GAAP presentation of cost of software licenses, cost of maintenance and service, research and development expense and selling, general and administrative expense. Although stock-based compensation is an expense of the Company and viewed as a form of compensation, management excludes these expenses for the purpose of calculating non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when it evaluates the continuing operational performance of the Company. Specifically, the Company excludes stock-based compensation during its annual budgeting process and its quarterly and annual assessments of the Company's and management's performance. The annual budgeting process is the primary mechanism whereby the Company allocates resources to various initiatives and operational requirements. Additionally, the annual review by the board of directors during which it compares the Company's historical business model and profitability as it relates to the planned business model and profitability for the forthcoming year excludes the impact of stock-based compensation. In evaluating the performance of senior management and department managers, charges related to stock-based compensation are excluded from expenditure and profitability results. In fact, the Company records stock-based compensation expense into a stand-alone cost center for which no single operational manager is responsible or accountable. In this way, management is able to review on a period-to-period basis each manager's performance and assess financial discipline over operational expenditures without the effect of stock-based compensation. The Company believes that the non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the Company's operating results and the effectiveness of the methodology used by management to review the Company's operating results, and (b)review historical comparability in its financial reporting, as well as comparability with competitors' operating results.

Non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. The Company's non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures, and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.

Pursuant to the requirements of Regulation G, the Company has provided a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures as listed below:

GAAP Reporting Measure        Non-GAAP Reporting Measure
Revenue                       Non-GAAP Revenue
Operating Profit              Non-GAAP Operating Profit
Operating Profit Margin       Non-GAAP Operating Profit Margin
Net Income                    Non-GAAP Net Income
Diluted Earnings Per Share    Non-GAAP Diluted Earnings Per Share

About ANSYS, Inc.

ANSYS, Inc., founded in 1970, develops and globally markets engineering simulation software and technologies widely used by engineers and designers across a broad spectrum of industries. The Company focuses on the development of open and flexible solutions that enable users to analyze designs directly on the desktop, providing a common platform for fast, efficient and cost-conscious product development, from design concept to final-stage testing and validation. The Company and its global network of channel partners provide sales, support and training for customers. Headquartered in Canonsburg, Pennsylvania, U.S.A., with more than 60 strategic sales locations throughout the world, ANSYS, Inc. and its subsidiaries employ approximately 1,700 people and distribute ANSYS products through a network of channel partners in over 40 countries. Visit www.ansys.com for more information.

Forward Looking Information

Certain statements contained in the press release regarding matters that are not historical facts, including, but not limited to, statements regarding our projections for revenue and earnings per share for the fourth quarter and fiscal year 2008 and fiscal year 2009 (both GAAP and non-GAAP, as applicable, to exclude purchase accounting for deferred revenue, acquisition-related amortization and stock-based compensation expense), statements about management's views concerning the Company's prospects in the remainder of 2008 and subsequent years, including statements about the strategic acquisition of Ansoft and its importance as a milestone in the ANSYS journey, statements about remaining optimistic that third quarter 2008 performance is only the beginning, statements about continued focus and execution of the Company's integration plan and long-term strategy, statements about uncertainties and confidence issues predominant in today's global economy, statements about continuing to forge ahead and deliver business results in-line with the Company's commitments and proven strategy, statements about the Company's strong balance sheet, strong cash flows, solid fundamentals and disciplined team, statements about steering through the current business climate, statements about the Company's resilient business model, continuing to drive profitable growth and delivering on the ANSYS mission to lead innovation in engineering simulation, statements about the Company's solid operating performance and belief that engineering simulation solutions remain a high priority for the Company's expanding customer base in a challenging economic environment, statements about business pressures on customers to deliver innovative, high-quality products with fewer resources having never been greater, statements about enthusiastic responses from customers and partners to the Company's upcoming product launches and long-term vision and product strategy, statements about the continued strength of the Company's financial performance and validation of the Company's strategy to engage customers at new levels driven by the breadth and depth of its world-class simulation capabilities, statements about the importance of the Company's continued focus on customers and their increasingly complex challenges, statements about building the foundation for the future, statements about continuing to remain optimistic about the Company's 2008 outlook and long-term future, statements about the realities and challenges stemming from the economic uncertainty existing in many markets, statements about the Company's internal disciplines and good business visibility, statements about directing the Company's focus and resources toward delivering results in-line with its outlook for 2009, statements about the Company's vast array of technologies that set it apart in the industry and continue to bring new business and increase adoption rates of ANSYS solutions with its existing customer base, statements about the continued validation of the Company's strategies and vision, statements about the opportunity over the long haul solidifying, statements about the ANSYS trajectory of future technology, focus on execution and understanding business drivers enabling the Company to cope with current and future challenges, statements about the Company's expanding array of customers, statements about the Company's commitment to continuing to focus and invest to support the needs of customers and the Company's business, statements about generating long-term stockholder value, statements and projections relating to the impact of stock-based compensation, statements regarding management's use of non-GAAP financial measures, statements regarding the Company's fourth quarter and beyond visibility, and statements regarding the impact of the Ansoft acquisition are "forward-looking" statements (as defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. All forward-looking statements in this press release are subject to risks and uncertainties. These include the risk that the business of ANSYS and Ansoft may not be combined successfully or such combination may take longer or cost more to accomplish than expected, the risk that the indebtedness incurred in connection with the acquisition of Ansoft may negatively impact ANSYS' flexibility and its financial condition, the risk that operating costs, customer loss and business disruption following the acquisition of Ansoft may be greater than expected, and risks relating to the Company's reliance on Ansoft's financial statements. Additional risks include, but are not limited to, the risk of a general economic downturn in one or more of ANSYS' primary geographic regions or industry sectors, the risk that the assumptions underlying ANSYS' anticipated revenues and expenditures will change or prove inaccurate, the risk that ANSYS has overestimated its ability to maintain growth and profitability and control costs, uncertainties regarding the demand for ANSYS' products and services in future periods, the risk that ANSYS has overestimated the strength of the demand among its customers for its products, risks of problems arising from customer contract cancellations, uncertainties regarding customer acceptance of new products, the risk that ANSYS' operating results will be adversely affected by possible delays in developing, completing, or shipping new or enhanced products, risks that enhancements to the Company's products may not produce anticipated sales, uncertainties regarding fluctuations in quarterly results, including uncertainties regarding the timing of orders from significant customers, and other factors that are detailed from time to time in reports filed by ANSYS, Inc. with the Securities and Exchange Commission, including ANSYS, Inc.'s 2007 Annual Report and Form 10-K, as amended. We undertake no obligation to publicly update or revise any forward-looking statements, whether changes occur as a result of new information or future events, after the date they were made.

ANSYS, ANSYS Workbench, Ansoft, AUTODYN, CFX, FLUENT and any and all ANSYS, Inc. brand, product, service and feature names, logos and slogans are registered trademarks or trademarks of ANSYS, Inc. or its subsidiaries in the United States or other countries. All other brand, product, service and feature names or trademarks are the property of their respective owners.

ANSYS, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(in thousands, except per share data)
(Unaudited)
                                                        Three Months Ended                              Nine months Ended
                                                        Sept. 30, 2008          Sept. 30, 2007          Sept. 30, 2008          Sept. 30, 2007
Revenue:
                   Software licenses                    $ 80,226                $     61,099            $ 227,777               $     177,723
                   Maintenance and service              42,021                        32,935            115,261                       96,381
                   Total revenue                        122,247                       94,034            343,038                       274,104
Cost of sales:
                   Software licenses                    2,508                         2,236             6,911                         6,756
                   Amortization                         8,120                         5,395             18,072                        16,119
                   Maintenance and service              13,959                        11,760            41,041                        34,327
                   Total cost of sales                  24,587                        19,391            66,024                        57,202
Gross profit                                            97,660                        74,643            277,014                       216,902
Operating expenses:
                   Selling, general and administrative  36,071                        26,596            92,933                        80,582
                   Research and development             20,282                        14,198            52,768                        40,846
                   Amortization                         3,011                         2,239             7,362                         6,647
                   Total operating expenses             59,364                        43,033            153,063                       128,075
Operating income                                        38,296                        31,610            123,951                       88,827
Interest expense                                        (3,122    )                   (1,600  )         (5,349     )                  (5,549   )
Interest income                                         1,672                         1,273             4,480                         3,248
Other (expense) income                                  (273      )                   (337    )         281                           (735     )
Income before income tax provision                      36,573                        30,946            123,363                       85,791
Income tax provision                                    10,798                        12,250            43,605                        32,688
Net income                                              $ 25,775                $     18,696            $ 79,758                $     53,103
Earnings per share -- basic
                   Basic earnings per share             $ 0.30                  $     0.24              $ 0.99                  $     0.68
                   Weighted average shares -- basic     85,687                        77,981            80,831                        77,653
Earnings per share -- diluted
                   Diluted earnings per share           $ 0.29                  $     0.23              $ 0.94                  $     0.66
                   Weighted average shares -- diluted   90,117                        81,196            84,614                        80,938

ANSYS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures
For the three months ended September 30, 2008
(in thousands, except percentages and per share data)
(Unaudited)
                                                     As Reported             Adjustments                Non-GAAP Results
Total revenue                                        $122,247                $6,598       (1)           $ 128,845
Operating income                                     38,296                  $20,424      (2)           58,720
Operating profit margin                              31.3      %                                        45.6       %
Net income                                           $25,775                 $12,903      (3)           $ 38,678
Earnings per share - diluted:
                Diluted earnings per share           $ 0.29                                             $ 0.43
                Weighted average shares -- diluted   90,117                                             90,117

(1) Amount represents the revenue not reported during the period as a result of the purchase accounting adjustment associated with EITF 01-3, "Accounting in a Business Combination for Deferred Revenue of an Acquiree."

(2) Amount represents $11.0 million of amortization expense associated with intangible assets acquired in business acquisitions, including amounts primarily related to acquired software, customer list and non-compete agreements, and a $2.8 million charge for stock-based compensation, as well as the $6.6 million adjustment to revenue as reflected in (1) above.

(3) Amount represents the impact of the adjustments to operating income referred to in (1) above, adjusted for the related income tax impact of $7.5 million.

ANSYS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures
For the three months ended September 30, 2007
(in thousands, except percentages and per share data)
(Unaudited)
                                                     As Reported             Adjustments                Non-GAAP Results
Total revenue                                        $ 94,034                                           $ 94,034
Operating (loss) income                              31,610                  9,575        (1)           41,185
Operating profit margin                              33.6      %                                        43.8      %
Net (loss) income                                    $ 18,696                $ 6,254      (2)           $ 24,950
Earnings per share - diluted:
                Diluted earnings per share           $ 0.23                                             $ 0.31
                Weighted average shares -- diluted   81,196                                             81,196

(1) Amount represents $7.5 million of amortization expense associated with intangible assets acquired in business acquisitions, including amounts primarily related to acquired software, customer list and non-compete agreements and a $2.1 million charge for stock-based compensation.

(2) Amount represents the impact of the adjustments to operating income referred to in (1) above, adjusted for the related income tax impact of $3.3 million.

ANSYS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures
For the nine months ended September 30, 2008
(in thousands, except percentages and per share data)
(Unaudited)
                                                     As Reported             Adjustments                Non-GAAP Results
Total revenue                                        $343,038                $6,598       (1)           $349,636
Operating income                                     123,951                 40,421       (2)           164,372
Operating profit margin                              36.1      %                                        47.0      %
Net income                                           $79,758                 $26,089      (3)           $105,847
Earnings per share - diluted:
                Diluted earnings per share           $ 0.94                                             $ 1.25
                Weighted average shares -- diluted   84,614                                             84,614

(1) Amount represents the revenue not reported during the period as a result of the purchase accounting adjustment associated with EITF 01-3, "Accounting in a Business Combination for Deferred Revenue of an Acquiree."

(2) Amount represents $25.1 million of amortization expense associated with intangible assets acquired in business acquisitions, including amounts primarily related to acquired software, customer list and non-compete agreements, an $8.7 million charge for stock-based compensation, as well as the $6.6 million adjustment to revenue as reflected in (1) above.

(3) Amount represents the impact of the adjustments to operating income referred to in (2) above, adjusted for the related income tax impact of $14.3 million.

ANSYS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures
For the nine months ended September 30, 2007
(in thousands, except percentages and per share data)
(Unaudited)
                                                     As Reported              Adjustments                Non-GAAP Results
Total revenue                                        $ 274,104                $ 1,829      (1)           $ 275,933
Operating income                                     88,827                   30,588       (2)           119,415
Operating profit margin                              32.4       %                                        43.3       %
Net income                                           $ 53,103                 $19,921      (3)           $ 73,024
Earnings per share - diluted:
                Diluted earnings per share           $ 0.66                                              $ 0.90
                Weighted average shares -- diluted   80,938                                              80,938

(1) Amount represents the revenue not reported during the period as a result of the purchase accounting adjustment associated with EITF 01-3, "Accounting in a Business Combination for Deferred Revenue of an Acquiree."

(2) Amount represents $22.4 million of amortization expense associated with intangible assets acquired in business acquisitions, including amounts primarily related to acquired software, customer list and non-compete agreements, a $6.4 million charge for stock-based compensation, as well as the $1.8 million adjustment to revenue as reflected in (1) above.

(3) Amount represents the impact of the adjustments to operating income referred to in (2) above, adjusted for the related income tax impact of $10.7 million.

ANSYS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
                                                              September 30,          December 31,
                                                              2008                   2007
ASSETS:
Cash & short-term investments                                 $212,374               $ 171,851
Accounts receivable, net                                      57,844                 48,281
Goodwill                                                      1,056,170              453,689
Other intangibles, net                                        383,844                176,850
Other assets                                                  130,859                118,621
Total assets                                                  $ 1,841,091            $ 969,292
LIABILITIES & STOCKHOLDERS' EQUITY:
Deferred revenue                                              $ 147,119              $ 122,799
Long-term debt (including current portion)                    300,244                60,146
Other liabilities                                             231,289                145,137
Stockholders' equity                                          1,162,439              641,210
Total liabilities & stockholders' equity                      $ 1,841,091            $ 969,292

ANSYS, INC. AND SUBSIDIARIES
Reconciliation of Forward-Looking Guidance
Quarter Ending December 31, 2008
                                                                   Earnings Per Share Range - Diluted
U.S. GAAP expectation                                              $0.26 - $0.29
Adjustment to exclude acquisition--related                         $0.08 - $0.09
amortization
Adjustment to exclude stock--based                                 $0.03
compensation
Adjustment to exclude purchase accounting adjustments to deferred  $0.05
revenue
Non-GAAP expectation                                               $0.43 - $0.45

ANSYS, INC. AND SUBSIDIARIES
Reconciliation of Forward-Looking Guidance
Year Ending December 31, 2008
                                                                   Earnings Per Share Range - Diluted
U.S. GAAP expectation                                              $1.20 - $1.23
Adjustment to exclude purchase accounting adjustments to deferred  $0.10
revenue
Adjustment to exclude acquisition--related                         $0.26 - $0.27
amortization
Adjustment to exclude stock--based                                 $0.11
compensation
Non-GAAP expectation                                               $1.68 - $1.70

Reconciliation of Forward-Looking Guidance
Year Ending December 31, 2009
                                                                   Earnings Per Share Range - Diluted
U.S. GAAP expectation                                              $1.30 - $1.44
Adjustment to exclude purchase accounting adjustments to deferred  $0.04 - $0.06
revenue
Adjustment to exclude acquisition--related                         $0.31 - $0.35
amortization
Adjustment to exclude stock--based                                 $0.11 - $0.13
compensation
Non-GAAP expectation                                               $1.84 - $1.90

SOURCE: ANSYS, Inc.

ANSYS, Inc. 
Investors: Annette Arribas, 724-514-1782 
annette.arribas@ansys.com 
or 
Media: Kelly Wall, 724-514-3076 
kelly.wall@ansys.com

"The improved depth of ANSYS POLYFLOW means that users can now apply the software to more design problems," said Chris Reid, vice president, marketing at ANSYS, Inc. "And the release addresses two important demands from our industrial users: running much larger simulations faster and with less memory than ever before, and completing the manufacturing simulation model by virtual testing with structural analysis software."

The addition of three efficient and robust solvers -- fully coupled, multifrontal and iterative -- means users can run simulations on much larger meshes than ever before. For example, 3-D simulations for dies containing more than 3 million elements have been converged on a standard high-end computer in just a few hours. Significant speed-ups regularly exceed 100 percent on large simulations compared to previous releases of ANSYS POLYFLOW software.

Faster simulation opens the door in complex rubber, plastic extrusion and coextrusion processes to optimization and automatic die balancing. This reduces trial and error time, since the die designer can query ANSYS POLYFLOW to determine which geometry leads to the best velocity profile across the die lip then finalize using the unique design capability of the code. The resulting data can be provided to structural analysis simulation software from ANSYS to perform mechanical tests and to investigate whether manufacturing or design adjustments are necessary.

Glass forming applications, whether related to gob forming, bottle blowing, pressing or drinking glass production, increasingly use engineering simulation to provide better insight into the complex deformations and thermal patterns that occur during the process. These simulations are extremely challenging, since they involve very large deformations coupled with large variations in temperature. Cooling, the most delicate phase of the process, may introduce residual stress leading to defects. The thermal stress relaxation model in ANSYS POLYFLOW enables users to detect emerging defects in the early cooling stages, providing information that can lead to improved design.

For glass applications, ANSYS POLYFLOW has added thermal stress relaxation and Narayanaswamy models (which are also available in ANSYS(R) Mechanical(TM) software). "The Narayanaswamy model is an important addition to better understand the evolution of residual stresses that could lead to some defects. Having these models in both ANSYS POLYFLOW and ANSYS Mechanical allows us to study the whole process, from forming to residual stress development and annealing," said Matt Hyre from Emhart Glass Research Center, which is investigating new approaches toward a more efficient, more stable, and more consistent glass forming process. The organization's parent company is one of the world's leading suppliers of equipment, controls and parts to the glass container industry.

"The continuous evolution of the ANSYS POLYFLOW solvers, rheological library and interface to other leading post-processing codes has been a great help for innovation at Goodyear," noted Minwu Yao from The Goodyear Tire & Rubber Company, one of the top three tire companies in the world today. Goodyear was one of the earliest users of the software.

About ANSYS, Inc.

ANSYS, Inc., founded in 1970, develops and globally markets engineering simulation software and technologies widely used by engineers and designers across a broad spectrum of industries. The Company focuses on the development of open and flexible solutions that enable users to analyze designs directly on the desktop, providing a common platform for fast, efficient and cost-conscious product development, from design concept to final-stage testing and validation. The Company and its global network of channel partners provide sales, support and training for customers. Headquartered in Canonsburg, Pennsylvania, U.S.A., with more than 70 strategic sales locations throughout the world, ANSYS, Inc. and its subsidiaries employ approximately 1,700 people and distribute ANSYS products through a network of channel partners in over 40 countries. Visit www.ansys.com for more information.

ANSYS, ANSYS Workbench, Ansoft, AUTODYN, CFX, FLUENT and any and all ANSYS, Inc. brand, product, service and feature names, logos and slogans are registered trademarks or trademarks of ANSYS, Inc. or its subsidiaries in the United States or other countries. All other brand, product, service and feature names or trademarks are the property of their respective owners.

SOURCE: ANSYS, Inc.

ANSYS, Inc. 
Media: 
Kelly Wall, 724-514-3076 
kelly.wall@ansys.com 
or 
Investors: 
Annette Arribas, 724-514-1782 
annette.arribas@ansys.com