Cadence, MatrixOne and IBM Collaborate to Deliver Product Design Solutions for the Global Electronics Industry

SAN JOSE, Calif., WESTFORD, Mass., ARMONK, N.Y.--(BUSINESS WIRE)--May 21, 2003--

Industry Leaders Target Electronics with Product Lifecycle Management Solutions to Accelerate Design to Volume and Lower Costs

Cadence Design Systems, Inc. (NYSE:CDN), MatrixOne, Inc. (NASDAQ:MONE) and IBM (NYSE:IBM) have announced they are teaming to deliver a comprehensive, integrated set of Product Lifecycle Management (PLM) solutions for the global electronics industry.

The new offerings will combine business transformation consulting, application customization, installation and training from IBM Global Services; platforms and software -- including IBM WebSphere(1) and DB2(1) middleware products; along with new, integrated PLM offerings from Cadence and MatrixOne.

This advanced solution will enable collaborative design directly from the engineering desktop; synchronize activities across the software, electronics and mechanical design disciplines; and make it easier for original equipment manufacturers (OEMs), semiconductor companies and Electronic Manufacturing Services (EMS) providers to work together.

Electronics companies will be able to use the solution to help improve their new product introduction processes, optimize design manufacturing outsourcing, accelerate time to volume, and dramatically lower costs.

As part of this plan, Cadence, MatrixOne and IBM Global Services are working with customers, other vendors and industry groups to develop and support new standards to improve integration and interoperability across the key technologies used in the software, electronic and mechanical design disciplines.

"Our relationship with IBM Global Services and MatrixOne will allow us to offer new solutions that enable designers to work seamlessly across the extended enterprise," said Ray Bingham, president and CEO at Cadence Design Systems. "The result will be design chain optimization and faster time to volume production for the electronics industry."

"These new offerings enable companies to synchronize the development of electronics design, embedded software development and mechanical packaging design in a single, integrated environment," said Mark F. O'Connell, president and CEO of MatrixOne. "We believe this offering will enable our joint customers to leverage the design capabilities of Cadence, the collaboration and business process capabilities of MatrixOne and the platform and service capabilities of IBM to create an environment that will allow them to drive new innovations to market."

Cadence is a recognized leader in electronic design technologies, methodology services, and design services with leading solutions for designing integrated circuits, packaging and printed circuit boards. MatrixOne is a leading provider of collaborative product lifecycle management solutions that leverage IBM WebSphere and DB2 for product planning, development, strategic sourcing and program management. IBM Global Services, the world's largest information technology services company, is a recognized electronics leader with deep expertise ranging from complex chip design to outsourced manufacturing.

"As companies outsource more manufacturing and design, it is critical that they create effective, secure collaborative development environments across their entire value chains," said Kevin Reardon, general manager, Electronics, IBM. "IBM is a significant electronics manufacturer in its own right. Our collaboration with such leading companies as Cadence Design Systems and MatrixOne expands our ability to deliver advanced PLM capabilities to the electronics industry that leverage our own expertise, transformational offerings, platforms, open middleware and services to help customers become best-in-class manufacturers."

About Cadence Design Systems

Cadence is the world's leader in electronic design technologies, methodology services, and design services. Cadence solutions are used to accelerate and manage the design of semiconductors, computer systems, networking and telecommunications equipment, consumer electronics, and a variety of other electronics-based products. With approximately 5,200 employees and 2002 revenues of approximately $1.3 billion, Cadence has sales offices, design centers, and research facilities around the world. The company is headquartered in San Jose, Calif., and traded on the New York Stock Exchange under the symbol CDN. More information about the company, its products and services is available at www.cadence.com.

About MatrixOne

MatrixOne, Inc. (NASDAQ: MONE) is a recognized leader in delivering collaborative Product Lifecycle Management (PLM) solutions. We provide flexible solutions that unleash the creative power of global value chains to inspire innovations and speed them to market. MatrixOne's customers include global leaders in the aerospace and defense, automotive, consumer products, high technology, life sciences, machinery, and the process industries, including Agilent Technologies, General Electric, Honda, Johnson Controls, Philips, Procter & Gamble, Siemens, and Toshiba. MatrixOne (http://www.matrixone.com/) is headquartered in Westford, Massachusetts with locations throughout North America, Europe, and Asia/Pacific.

IBM Global Services

IBM Global Services is the world's largest information technology services and consulting provider, generating over $36 billion in 2002. Approximately 180,000 professionals serve customers in over 160 countries, providing the entire spectrum of customers' e-business needs -- from the business transformation and industry expertise of IBM Business Consulting Services to hosting, infrastructure, technology design and training services. IBM Global Services delivers integrated, flexible and resilient processes -- across companies and through business partners -- that enable customers to maximize the opportunities of an on-demand business environment. For more information, visit: www.ibm.com/services

Cadence and the Cadence logo are registered trademarks of Cadence Design Systems, Inc.

(1) Trademark or registered trademark of the International Business Machines Corporation.

MatrixOne and eMatrix are registered trademarks, and a leading provider of collaborative product lifecycle management (PLM) solutions for the value chain is a trademark of MatrixOne, Inc. All other trademarks and service marks are the property of their respective owners.

Forward-looking statements in this release are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. Such statements may relate, among other things, to our plans, objectives and expected financial and operating results. The risks and uncertainties that may affect forward-looking statements include, among others: poor product sales, long sales cycles, difficulty developing new products, difficulty in relationships with vendors and partners, higher risk in international operations, difficulty assimilating future acquisitions, difficulty managing rapid growth, and increased competition. For more about the risks and uncertainties of our business, see our periodic and other S.E.C. filings.

CONTACT: MatrixOne, Inc.
             Charlie Guyer, 978/589-4052                       
             charlie.guyer@matrixone.com        
             or
             Cadence Design Systems 
             Meg Kenagy, 503/968-4842           
             mkenagy@cadence.com    
             or
             IBM                       
             Gina Jesberg, 914/642-3544              
             ginajes@us.ibm.com