ESI GROUP (EPA:ESI) ESI GROUP: Sales for the Q1 2009/10

Transparency directive : regulatory news

11/06/2009 18:16

ESI Group                    NewCap.
Corinne Romefort-Régnier     Emmanuel Huynh / Axelle Vuillermet
Shareholder relations        Tel.: +33 (0)1 44 71 94 94
Tel.: +33 (0)1 53 65 14 14   esi@newcap.fr
investors@esi-group.com

Sales for the Q1 2009/10: +11.6%
Further growth in the installed base

Paris, 11th June 2009: ESI Group (ISIN FR0004110310), ), a pioneer and
world-leading solution provider in virtual prototyping and manufacturing
processes, today announced its consolidated sales for its first quarter to
30th April 2009.

                   Q1 2009/10   Q1 2008/09     Var. %     Var. %
In EUR million                                (volume)   (actual)
Licences              11.1         10.8        -6.3%       +2.9%

Services and other
revenue                5.3          3.9       +31.4%      +35.1%

TOTAL                 16.4         14.7        +3.8%      +11.6%

                         NB: the Group's FY runs to 31st January

Sales for the first quarter of the current financial year totalled EUR16.4
million euros, up +3.8% in volume terms on the first quarter of 2008/09, and up
+11.6% in actual terms given the favourable evolution of exchange rates.
The change in the geographical breakdown of the Group's activity reflects the
integration of Mindware, essentially based in the United States. 39% of
first-quarter activity was thus recorded in Europe, 23% in the Americas and 38%
in Asia, versus figures of 47%, 13% and 40% respectively in 2008/09.

Driven by the ongoing growth in the Licences installed base, which grew by +4.1%
by volume compared to the first quarter of the previous year, and by the
positive exchange rate effect, Licence sales came to EUR11.1 million euros, up
+2.9%. Although it continued to benefit from the stability of its Repeat
Business at the high level of 81% by volume and from the growth in its installed
base, Licence sales did however continue to suffer - albeit less than during the
fourth quarter of 2008/09 - from the slowdown in new investments resulting from
the deterioration in the economic situation around the world, and in Japan in
particular. Subsequently, the proportion of New Business at the end of the first
quarter of 2009/10 was down to 14% of Licence sales, versus 22% at the end of
the first quarter of 2008/09.

Sales from Services totalled EUR5.3 million euros, up +35.1% in actual terms and
+31.4% by volume. Consolidated within the Group since mid-December 2008,
Mindware recorded a first quarter that was in line with expectations and
contributed 1.5 million euros to total Group sales. Penalised by a negative base
effect given the very high rate of growth recorded by Services over the first
three months of the previous financial year, Service sales totalled EUR3.8
million euros on a constant scope basis at the end of the first quarter of
2009/10, down -2.2% on the sales figure of EUR3.9 million euros recorded over
the first quarter of 2008/09.

Alain de Rouvray, ESI Group's Chairman and CEO, concludes: "Traditionally not
very representative of our activity recorded through the rest of the year, first
quarter sales nevertheless continued to emphasize the excellent performance of
our Licences installed base within an economic context that remains very
difficult. Backed by the renewed trust placed in us by our major corporate
clients, by the significant contribution of Mindware and by the numerous
innovative projects that are currently the subject of negotiations in our
Services activity, we continue to have confidence in the pursuance of our growth
in activity and our improvement in profitability with a product mix for the full
financial year that should consist of around 30% of Service sales and 70% of
Licence sales."

About ESI Group
ESI is a world-leading supplier and pioneer of digital simulation software for
prototyping and manufacturing processes that take into account the physics of
materials. ESI has developed an extensive suite of coherent, industry-oriented
applications to realistically simulate a product's behavior during testing, to
fine-tune manufacturing processes in accordance with desired product
performance, and to evaluate the environment's impact on product performance.
ESI's products represent a unique collaborative and open environment for
Simulation-Based Design, enabling virtual prototypes to be improved in a
continuous and collaborative manner while eliminating the need for physical
prototypes during product development. The company employs over 750 high-level
specialists worldwide covering more than 30 countries. ESI Group is listed in
compartment C of NYSE Euronext Paris.
For further information, visit www.esi-group.com.

Listed in Eurolist compartment C of NYSE Euronext Paris
ISIN FR 0004110310 - FTSE 977- Bloomberg ESI FP - Reuters ESIG.LN
ESI GROUP has been qualified as "an innovative company" since January 20th 2000
by the OSEO-Anvar and is eligible for inclusion in "FCPI" (venture capital
trusts dedicated to innovation).

get it right(TM) is a registered trademark of ESI Group.

Sales for the first half of 2009/10 will be published on 10th September 2009
(after market)

G.PC.09.217.A

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