ESI GROUP'S CASTING SOLUTIONS BENEFIT FROM TWO AMBITIOUS EUROPEAN PROJECTS

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ESI GROUP'S CASTING SOLUTIONS BENEFIT FROM TWO AMBITIOUS EUROPEAN PROJECTS
18 November 2005 - ESI Group

ESI Group's (ISIN FR0004110310), metallurgical development team has been selected for its proven ability to develop and implement accurate material models to simulate complex solidification and solid state transformation phenomena.

ISA-PESR, started in September 2004 with a duration of three years. This is an innovative project dedicated to the simulation of advanced protective gas electro-slag-remelting for the production of high quality steels. It is financed by a research program from the European Commission Research Fund for Coal and Steel. ESI Group, France participates in the program developing specific solvers enabling the modeling of complex electromagnetic interactions during the casting process. A commercial module tailored to the needs of the remelting industry will be developed and coupled with the casting simulation software available from ESI Group.

The project is coordinated by the Montan University of Leoben in Austria with the participation of prestigious partners such as ALD Vacuum Technologies in Germany, Böhler Edelstahl GmbH in Austria and Centro Sviluppo Materiali in Italy.

The second program is IMPRESS which started in November 2004 for a duration of five years. This project is part of the 6th Framework Program of the European Commission coordinated by the European Space Agency. Calcom ESI, ESI Group's Swiss subsidiary, is directly funded by the Swiss Secretariat for Education and Research. The goal of the project, in which 41 European institutes and companies are participating, is to understand the critical link between material processing, material structure and material properties of novel higher-performance multi-functional intermetallic alloys and to transfer this new knowledge into breakthrough prototypes tailored for extreme applications such as turbine blades and fuel cells.

Calcom ESI will contribute to this ambitious project by concentrating its efforts on coupled casting and heat treatment simulation, prediction of material properties altered by porosity and assessment of the solid state transformation during heat treatment. For this study, a close collaboration with the Swiss Federal Institute of Technology in Lausanne has already been initiated.

"These close collaborations with visionary companies and leading Universities and Research Institutes enable ESI Group to further develop its casting solutions and thereby to continuously provide industries worldwide with improved, reliable and sophisticated software products." says Marco Gremaud, Business Development Director, Casting Solutions, ESI Group.

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About: ESI Group
ESI Group is the world leading software editor for the numerical simulation of prototype and manufacturing process engineering in applied mechanics. The key to ESI Group's success is the use of realistic material physics, providing "as good as real" virtual solutions, in order to replace the lengthy trial and error processes on real prototypes.

ESI Group has developed an entire suite of coherent industry-oriented applications to realistically simulate a product's behavior during testing, to fine tune the manufacturing processes in synergy with the desired product performance, and to evaluate the environment's impact on product usage. ESI Group's product portfolio, which has been industrially validated and combined in multi-trade value chains, represents a unique collaborative, virtual engineering solution, known as the Virtual Try-Out Space (VTOS), enabling a continuous improvement on the virtual prototype.

By drastically reducing costs and development lead times, VTOS solutions offer major competitive advantages by progressively eliminating the need for physical prototypes.

A sustained growth

Total consolidated revenue for fiscal year 2003, ending January 31st 2004, increased by 15% in real terms and 22% at constant exchange rates, compared to the previous year reaching 49 million euro.

The software activity remained stable with 73% from licenses and 27% from services.

The major acquisitions made in 2002 and 2003 accounted for 15% of revenue growth and took part in the strengthening of the Group's position on the American market.

As in previous years, ESI Group maintained a strong international presence with 50% of turnover generated outside Europe and 79% of revenue outside.

Listed on the Nouveau Marché of Euronext Paris, ESI Group employs almost 500 high-level specialists worldwide.
ESI Group and its global network of agents provide sales and technical support to customers in more than 30 countries.

A key investment area: Research and Development

ESI Group is making substantial R&D efforts and forms partnerships with leading academic and research laboratories in order to offer state-of-the-art solutions.

ESI Group also provides high value-added services, worldwide through its subsidiaries located in Europe, Asia and Americas. Consulting projects with strategic industrial partners as well as European R&D contracts exemplify ESI Group's strong engineering knowledge and scientific expertise.

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