Kobelco Accelerates Engineering Innovation With SMARTEAM and CATIA V5

Construction Machinery Manufacturer Streamlines Development of Hydraulic Excavators with PLM Solutions From IBM and Dassault Systèmes
Tokyo and Paris, France - October 13, 2004 – IBM and Dassault Systèmes today announced that Kobelco Construction Machinery Co., Ltd., one of the world's leading manufacturers of construction machinery, has successfully used their PLM (Product Lifecycle Management) solutions to streamline the development and improve the quality of its hydraulic excavators.

Using CATIA V5, the world's leading 3D product-development application, Kobelco has created full digital mock-ups of its hydraulic excavators and can now view the entire product and correct potential problems early in the design process. At the stage of making a prototype machine, CATIA V5 has delivered improved product quality, a 30 percent reduction in the time required for design changes, and a 50 percent reduction of design defects. CATIA V5 and SMARTEAM, for collaborative product data and lifecycle management, have also improved efficiency by enabling the sharing and re-use of intellectual assets within the company.

Kobelco also plans to use CATIA V5's knowledgeware functionality for the reuse of designs and 3D data usage at manufacturing and sales divisions, as well as take advantage of SMARTEAM's Web functionality to strengthen its collaboration with group companies, thereby improving efficiency even further.

"In this industry, as competition becomes more severe, we need to develop products to meet the customer requirements for high-quality, affordable products produced in a short time," said Tetsutaro Yanaka, group manager, Engineering Administration in the General Engineering Dept. at Kobelco Construction Machinery. "CATIA V5 and SMARTEAM have enabled to strengthen processes within the design team. We achieved this positive outcome thanks to a powerful, integrated solution."

"IBM PLM solutions have helped Kobelco speed up time to market and constantly improve the quality of its product," said Junichi Takeuchi, Asia Pacific director, IBM Product Lifecycle Management Solutions, IBM Asia Pacific Service. "Those key ingredients helped the company strengthen its leading position in a most challenging environment. We are committed to continue helping manufacturers implement a winning strategy with our world-class PLM industry-specific solutions and methodologies."

"Kobelco's success clearly demonstrates the value PLM solutions developed by Dassault Systèmes deliver," said Christian Nardin, managing director, Dassault Systèmes Asia. "A key aspect for Kobelco is the ability to simulate and optimize concurrently all aspects of excavator engineering, packaging, operation and ergonomics, while capitalizing on and re-using engineering knowledge to more rapidly derive the multiple variants the market requires."
Kobelco will present details on the benefits of this implementation today at the European CATIA forum at Disneyland Paris.

About Kobelco Construction Machinery Co., Ltd.
Centered on the construction machinery division of Kobe Steel, Ltd., Kobelco was established in 1999. Including the time since the division manufactured an electric mining shovel in 1930, the company has a history of over 70 years of manufacturing construction machinery. As a global company, Kobelco has production and sales bases not only in Japan but also in the U.S., Europe, and Asia. In 2001 the company entered into business ties with CNH Global N.V., a farm machinery and construction machinery manufacturer in the FIAT Group, thus forming one of the world's foremost integrated machinery manufacturing groups. Through the combined production and sales bases of both companies, a system has been put into place for providing products and services with high value to customers around the world.

About IBM
IBM is the world's largest technological company, providing leadership and innovation throughout the world for more than 80 years. IBM is the largest supplier of "hardware," "software" and Information Technology services, and pioneered the development and implementation of "e-business" solutions. IBM Sales & Distribution, which supports more than a dozen key industries worldwide, works with companies of all sizes around the world to deploy the full range of IBM technologies. The fastest way to get more information about IBM is through the IBM home page at www.3ds.com

About Dassault Systèmess
As world leader in PLM (Product Lifecycle Management) solutions, the Dassault Systèmes group brings value to more than 70,000 customers in 80 countries. A pioneer in the 3D software market since 1981, Dassault Systèmes develops and markets PLM application software and services that support industrial processes and provide a 3D vision of the entire life cycle of products from conception to retirement. Its offering includes integrated PLM solutions for product development (CATIA®, DELMIA®, ENOVIA®, SMARTEAM®), mainstream product design tools (SolidWorks), and 3D components (ACIS®) from Spatial Corp. Dassault Systèmes is listed on the Nasdaq (DASTY) and Euronext Paris (#13065, DSY.PA) stock exchanges. For more information, visit www.3ds.com





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