Cadence and MatrixOne to Create PLM Solutions for Global Electronics Industry

SAN JOSE, Calif. and WESTFORD, Mass.--(BUSINESS WIRE)--May 21, 2003--Setting a new standard for electronics design and supplier collaboration in the global electronics industry, Cadence Design Systems, Inc. (NYSE:CDN) and MatrixOne, Inc. (NASDAQ: MONE) today announced a strategic alliance to produce a suite of product lifecycle management (PLM) solutions. These advanced and innovative solutions will enable collaborative design directly from the engineering desktop; synchronize activities across the disciplines of software, electronics and mechanical design; and optimize interactions among OEMs, semiconductor companies and electronic manufacturing services (EMS) providers.

As part of the alliance, key technologies from both companies will be combined to create new collaborative design, component supplier management and design for supply chain solutions. Technologies recently acquired by Cadence from SpinCircuit and the Thales Group will be integrated with design data management, change management and collaboration technologies from MatrixOne to create the new offerings. These new products will seamlessly integrate with Cadence's electronic design products and MatrixOne's extended enterprise PLM solutions, and will support open integration with a wide range of third-party solutions.

According to Joanne Friedman, vice president of research at industry analyst firm, Meta Group, "Global electronics manufacturing is a highly complex value chain that has long needed design collaboration, far more than transactional systems integration. Customers will use the new integrated solutions offered by Cadence and MatrixOne to enable collaborative electronics design and to innovate while alleviating inefficiencies (e.g., time to market, process cost). This provides an elegant technology enabler for the Design for Outsource business model that can cascade improved profitability across the electronics value chain."

First-of-its-kind Solution for Collaborative Design and Library Management

One of the new offerings is a collaborative design and library management solution that will integrate powerful collaborative tools directly onto the electronic designer's desktop for the first time. The new solution will empower engineering design teams to perform a combination of tasks that previously lacked a practical commercial solution. These include the following:

--	Effective work in progress design data management;
--	Timely collaboration between design, sourcing, and manufacturing;
--	Component and design library management;
--	Enterprise-wide library distribution;
--	Secure, automated design-to-manufacturing hand-off;
--	Comprehensive bill of material (BOM) management and optimization; and
--	Seamless integration with corporate PLM environments.

"With outsourced design and manufacturing becoming more pervasive, the need to connect the designer to the extended enterprise in real time and enable collaborative design has never been greater," said Dave DeMaria, executive vice president, Cadence Design Systems. "Our alliance with MatrixOne enables us to deeply integrate data management, supply chain and collaboration capabilities directly into our design solutions -- from IC to package to board. The result is shorter design cycles, fewer design spins and lower overall design costs."

Synchronizing Electronics, Software and Mechanical Design

New, jointly marketed solutions will enable electronics companies to easily synchronize the three primary development processes: electronics design, embedded software development and mechanical design, in a single, integrated environment. These solutions will integrate Cadence design tools and PLM products with the Matrix10 extended enterprise PLM offerings, enabling customers to do the following:

-- Manage federated bills of materials that include software,

electronics, and hardware as well as all associated designs

and documentation;

-- Enable concurrent electronics design, software development and

mechanical packaging projects to be synchronized and

controlled;

-- Support effective engineering change management across all

design disciplines; and

-- Enable complex product designs to be accessed and managed as

coherent, integrated packages.

"Solectron is focused on providing an integrated environment for seamless information handoffs and collaboration with our customers," said Vincent DePalma, vice president of new product introduction and technology, Solectron Corporation. "The new solutions from Cadence and MatrixOne will enable us to lower design costs, optimize BOMs in less time, and increase collaboration with customers on complete design packages, including electronics, hardware and software."

Optimizing Interactions Across the Design and Value Chain to Drive Time to Volume

Additional offerings from Cadence and MatrixOne will enable companies to create secure, intelligent, high-performance collaboration environments with their partners. This will permit real-time participation of each partner in the design and value chain across the entire development lifecycle. This will include new capabilities for the following:

-- More effective design and manufacturing outsourcing;

-- Early supplier involvement in the design process;

-- Secure, high-volume information exchange;

-- Intelligent, automated processing of design packages; and

-- Efficient change management across the value chain.

"By bringing us into the development process early, we can assist customers in lowering their design and product costs," said Nicholas Brathwaite, chief technology officer, Flextronics. "These new solutions are an important step forward in enabling our industry to increase the usage of preferred parts and optimal design rules which, in turn, improve manufacturability and yield."

"The design and manufacturing of electronics is becoming increasingly complex and fragmented," said Mark F. O'Connell, president and CEO, MatrixOne. "Our partnership with Cadence simplifies this for customers by providing out-of-the-box solutions that seamlessly integrate into their existing design environment. This enables them to balance their product development investments between their internal resources and their outsourced and offshore design and manufacturing partners."

Availability

The new solutions are slated to be installed at pilot customer sites and are scheduled for broad distribution during the second half of this year. Initial offerings will be previewed at the Design Automation Conference in Anaheim, California, June 2 through 6.

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.

Cadence and the Cadence logo are registered trademarks and SpinCircuit is a trademark of Cadence Design Systems, Inc. All other trademarks and registered trademarks are property of their respective holders.

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. These risks and uncertainties include, among others: the weak computer software market and worldwide economic conditions, poor license and services revenues, incurrence of losses, failure to achieve profitability, long and variable sales cycles, difficulty developing new products, difficulty in developing and maintaining relationships with vendors and alliance partners, higher risk in international operations, difficulty assimilating future acquisitions, failure to achieve market acceptance for our products and services and increased competition. If any of these or other risks were to occur, our business, financial condition or results of operations would likely suffer and the trading price of our common stock would decline. For more detailed discussion about the risks and uncertainties of our business, see our periodic and other filings with the Securities & Exchange Commission.

CONTACT: Cadence Design Systems
             Meg Kenagy, 503/968-4842
             mkenagy@cadence.com
             or
             MatrixOne, Inc.
             Charlie Guyer, 978/589-4052
             charlie.guyer@matrixone.com