Paris, 11^th September 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 half to 31^st July 2007.

Changes in quarterly and half-year sales:

The Group’s FY runs to 31^st January

Reminder: Figures for this first half were recorded on a constant business perimeter, and therefore reflect purely organic growth. The seasonality inherent to ESI Group’s activity means that a very substantial portion of annual revenues are recorded over the second half of its financial year.

First-half sales totalled 27.6 million euros, up +10.0% at constant exchange rates.

Licences sales for the six months were up +7.9% at constant exchange rates, representing an acceleration in growth for Licences activity in volume compared to the first half of last year (+5.3%).

The substantial acceleration in Services growth over the second quarter (+25.5% at constant exchange rates) has resulted in half-year growth of +17.2% at constant exchange rates and confirms the anticipated upturn in Services activity. This improvement was recorded thanks to the amplification of high value-added projects, notably in the Automotive and Aeronautical domains.

Alain de Rouvray, ESI Group’s Chairman and CEO, says: “The relatively good performance of Licences activity in volume and the substantial growth recorded by Services activity have enabled us to report first-half sales, excluding exchange rate effects, that are broadly in line with our expectations. Activity was particularly dynamic in North America despite strong local competition.”

Repeat business ratio for Licences sales reached 72%, versus 79% for the same period of 2006, but should be seen in context at this stage of the year and was impacted by a substantial exchange rate effect in American and Asian areas, which represented 65% of first-half Licences sales.

Up 4 points to 28%, the percentage of New Business confirms the surge of emerging countries (China, India), whose clients first and foremost favour “One Time Charge” (OTC) sales rather than yearly rental licences.

Furthermore, increasing market interest in our solutions is shown by the high level of orders booked for emerging products resulting from acquisitions. The integrated packaged Vibro-Acoustics solution VA One © for noise simulation and acoustic comfort, a unique product on this market, that incorporates low, medium and high frequencies, illustrates this success with a strong growth in orders booking.

The percentage of half-year sales recorded from abroad remained stable at 83%. The geographical sales split was as follows: Europe 42%, Asia 42% and America 16%.

Alain de Rouvray concludes: “Our main markets, such as the Automotive and Aeronautical sectors, are facing ever-tighter constraints in terms of production deadlines, manufacturing costs and competitiveness. The substantial upturn in Services activity over our second quarter, which should continue throughout the remainder of the year, confirms increasing market interest for our integrated 2G and 3G solutions and for our high value-added methodological support that most appropriately meets the increasing demands of our industrial corporate clients when it comes to full virtual prototyping and realistic digital simulation.”

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 (last renewal on July 30^th, 2007) 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

Full results for the first half of 2007 will be published on 26th September 2007 (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.