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EXHIBIT 99.2
The following news release was distributed via PR Newswire at 1:00 p.m. ET
Monday, December 18, 2000:
MECHANICAL DYNAMICS COMPLETES ESTECH ACQUISITION
ANN ARBOR, Mich. - Mechanical Dynamics, Inc. (Nasdaq: MDII), a worldwide
provider of functional virtual prototyping software and services, announced
today that it has completed the acquisition of ESTECH, a computer-aided
engineering (CAE) service provider based in Yokohama, Japan, from Nissan Motor
of Japan and Structural Dynamics Research Corporation (SDRC).
Under the terms of the agreement, ESTECH (Engineering Solutions & TECHnology)
will become a wholly owned subsidiary of Mechanical Dynamics. The total purchase
price paid, less ESTECH cash, approximated $4.7 million, including other
acquisition-related costs. For its fiscal year ended March 31, 2000, ESTECH
reported revenue of $6.6 million. Excluding any one-time acquisition-related
charges, the transaction is expected to be neutral to Mechanical Dynamics'
fourth-quarter 2000 earnings and accretive to the company's calendar year 2001
earnings.
Except for historical information contained herein, some matters discussed in
this news release constitute forward-looking statements which involve risks and
uncertainties that could cause actual results to differ materially from those
projected. These include possible delays in developing, completing, or shipping
new or enhanced products, as well as other risks and uncertainties that are
detailed from time to time in reports filed by Mechanical Dynamics, Inc. with
the Securities and Exchange Commission, including Mechanical Dynamics, Inc.'s
1999 Annual Report and Form 10-K and most recent Quarterly Report on Form 10-Q.
Mechanical Dynamics pioneered the field of mechanical system simulation with its
market-leading ADAMS(r) software, and remains committed to extending the
capabilities of this technology to benefit manufacturers in every industry
worldwide. Additional information about Mechanical Dynamics can be obtained by
writing to the company at 2300 Traverwood Drive, Ann Arbor, Michigan 48105.
Phone: 734-994-3800. Fax: 734-994-6418. E-mail: [email protected]. Online:
www.adams.com.
Editor's advisory: ADAMS and the Mechanical Dynamics logo are registered
trademarks of Mechanical Dynamics, Inc.
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Contact: Investor Relations, Dave Peralta, Vice President and Chief Financial
Officer, 734-913-2508; Media Relations, Carrie G. Bachman, Corporate
Communications Specialist, 734-913-9251
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