Paris, 11^th December 2007: ESI Group (ISIN FR0004110310), a pioneer and world-leading supplier and pioneer of digital simulation software for prototyping and manufacturing processes, announces its consolidated sales for its third quarter to 31^st October 2007 and the first 9 months of its 2007/2008 financial year.

Third-quarter sales

                               Financial year ended 31 January

Sales for the third quarter of the Group’s 2007/08 financial year totalled 12.9 million euros, with organic growth by volume of +5.6% compared to the third quarter of the previous financial year.

The acceleration in growth recorded by Services associated with high value-added projects has been reaffirmed, with Services sales jumping +28.9% by volume to 3.7 million euros.

Licences sales totalled 9.2 million euros. This almost stable sales figure in volume terms should be put into perspective, as this activity is highly seasonal and that the third quarter of last year saw substantial growth of +14.6%, thus weighing on the comparison between Q3-06 and Q3-07.

Sales for the first 9 months of the Group’s financial year, entirely organic, totalled 40.5 million euros, up +8.6% by volume.

The negative evolution of exchange rates in Asia and contributed -8.2% and -8.4% respectively to growth over the 9 months. These two zones represent 57% of total activity over the period, leading to an exchange rate impact in sales terms of -1.8 million euros.

Licences activity totalled 30.05 million euros over the 9 months, up +4.9% by volume. Services activity recorded a +21.1% jump by volume to 10.5 million euros.

Alain de Rouvray, ESI Group’s Chairman and CEO, concludes: “Activity over our third quarter illustrates the confirmation of the trend noted over the first half of the year, i.e. a strengthening of Services activity essentially associated with high value-added projects. This improvement lays witness to ESI Group’s ability to implement, amongst OEMs, physics based realistic digital simulation processes in an industrial context. The seasonality of our sales over this fiscal year should further increase, with a substantial proportion of our Licences activity recorded during our final quarter.”

About ESI Group

A virtual test software package publisher, ESI Group is the world-leading supplier, and a pioneer of digital simulation software for prototyping and manufacturing processes that take into account the physics of materials. ESI Group has developed an extensive suite of coherent, industry oriented applications to realistically simulate a product’s behaviour during testing, to fine-tune manufacturing processes in accordance with desired product performance, and evaluate the environment’s impact on product performance. ESI Group’s products, which have a proven track record in manufacturing and have been combined in multi-trade value chains, represent a unique collaborative and open virtual engineering solution known as the Virtual Try-Out Space (VTOS), enabling virtual prototypes to be improved in a continuous and collaborative manner. This integrated communication protocol will enable all the company’s solutions to work with each other and with applications developed by independent software vendors. By significantly reducing costs and development lead times and enabling product/process synergies, VTOS solutions offer major competitive advantage by progressively eliminating the need for physical prototypes during product development. The company generated sales of €66m in 2006, employs over 600 high-level specialists worldwide covering more than 30 countries. ESI Group is listed in Eurolist compartment C of Euronext Paris. For further information, visit www.esi-group.com.

Listed in Eurolist compartment C of Euronext Paris

ISIN FR 0004110310 - FTSE 977- Bloomberg ESI FP - Reuters ESIG.LN

ESI GROUP has been qualified as “an innovative company” since January 20^th 2000 (last renewal on July 30^th, 2007) by the OSEO-Anvar and is eligible for inclusion in “FCPI” (venture capital trusts dedicated to innovation).

2007/08 annual sales will be published on 11th March 2008  (after market)

Virtual Try-Out Space® and VTOS® are registered trademarks of ESI Group. All other products, names or companies are the brands or registered trademarks of their respective owners.