Paris, 12^th June 2007: ESI Group (ISIN FR0004110310), a pioneer and world-leading solution provider in virtual prototyping and manufacturing processes, today announces its consolidated sales for its first quarter to 30^th April 2007.

The Group’s FY runs to 31^st January

ESI Group sales totalled 13.5 million euros for the first quarter of its 2007 financial year, up +11.0% in volume (organic growth at constant perimeter). Due to a substantial currency effect over the period, actual growth in euros was up +5.9%.

The activity split remained stable between the Group’s two business activities that are Licences and Services, as well as geographically (82% of sales abroad). The 11.0% rate of growth in volume was homogenous across the European, Asian and American areas, and demonstrates the good spreading and increasing adoption of the Group’s solutions by manufacturers around the world.

Licences activity remained particularly buoyant with a growth of +11.7% in volume. Licence sales recurrence improved in comparison to the Q1-FY06 figures to reach the high rate of 82%, whilst new business (new products and new clients) recorded a very substantial growth of +31% in both emerging and industrialised countries.

Services activity also showed a renewed growth (+8.7% in volume), notably due to a further strengthening of demand on high added value projects (engineering services) associated with the development and adoption by industry of virtual simulation technologies and methodologies for Simulation Based Design (SBD).

At 30^th April 2007, available cash was up significantly, at 12.3 million euros (vs. 9.7 million euros at 31^st January 2007) at a satisfactory level.

Alain de Rouvray, the ESI Group’s Chairman and CEO, concludes: “Despite a particularly unfavourable exchange rate evolution over the period, reported sales for the first three months of our fiscal year demonstrate a fine takeoff in activity.  In particular for Licences, mature products are continuing their transition towards 2G solutions whilst emerging and innovative products remains efficient growth relays. Regarding Services, booking order prospects are again encouraging, and confirm the expected upturn in this activity through FY 2007.”

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.

ESI GROUP has been qualified as “an innovative company” since January 20^th 2000 by the OSEO anvar and is eligible for inclusion in “FCPI” (venture capital trusts dedicated to innovation).

Listed in Eurolist compartment C of Euronext Paris

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

        Sales for the first half of 2007/08 will be published on 11^th September 2007

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