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Arena Announces Record Fourth Quarter and a Record Fiscal Year with 150% Increase in Revenues

Company Continues to be the Fastest-Growing Provider in the Expanding PLM Market

Foster City, Calif., January 25, 2005 — Arena Solutions, Inc., the leading provider of on-demand Product Lifecycle Management (PLM), today announced a 150 percent increase over FY’03 revenues and a record fourth quarter in FY’04 ended December 31, 2004. The company’s compounded quarterly growth rate (CQGR) over the last eight quarters was 26 percent. This rapid growth illustrates the widening popularity of Arena and the increasing market potential for an easy-to-use and quick-to-deploy, on-demand PLM solution.

With 29 customer wins in the fourth quarter, the company continues to demonstrate accelerating market adoption of its web-native, hosted solution for managing complex design and manufacturing product information and processes. Arena’s customers are dramatically increasing profitability by reducing final product costs and decreasing time to market.

“It’s an exciting and energizing period,” said Michael Topolovac, Chief Executive Officer of Arena Solutions. “We’re not only seeing our solution being successfully used by a number of companies in different industries, but are also seeing these customers return to us for expanded deployments in other parts of their organizations. Companies are realizing the ROI and strategic benefits of using a true on-demand PLM solution for managing all aspects of their product development cycle.”

Enterprises today are faced with strategic and operational challenges in an era of increased customer choice and empowerment, especially as new competitors emerge from low-cost technology economies such as China and India. Time to market and managed product complexity are issues of growing importance as enterprises move to achieve product and cost leadership. Arena’s on-demand PLM solution provides the foundation to successfully address these issues and manage a multitude of globally distributed, product centric business processes.

ARC Advisory Group predicts that adoption of PLM solutions will continue to accelerate, becoming one of the top enterprise software markets through 2008. According to a new ARC Advisory Group study, the worldwide market for PLM software and services is forecasted to be nearly $9.2 billion in 2008.

With more than 200 customers, 74 of which were secured in FY’04, Arena continues to be the fastest-growing PLM provider in the industry. Arena PLM can be implemented almost immediately and accessed via standard web browsers across an entire chain of manufacturers, suppliers and outsourcing partners. The on-demand delivery model eliminates upfront software and hardware costs, ongoing IT management requirements, and the overall complexity of client-server software.

About Arena Solutions

For over a decade, Arena has been redefining PLM with a suite of cloud applications that enable engineering, manufacturing and their extended supply chains to work better together—from first prototype to full-scale production. Arena helps innovative manufacturers bring better products to market faster with cloud PLM offerings that speed prototyping, reduce scrap and help manufacturers collaborate on product changes with strategic partners across the globe.

Arena cloud PLM products simplify bill of materials (BOM) and change management, and offer manufacturers the right balance of flexibility and control—at every point in the product lifecycle. PartsList and PDXViewer are lightweight single-user applications that allow manufacturers to move quickly and efficiently while designing, documenting and sharing a prototype. When scaling to production and beyond, the Arena core application provides full PLM functionality so manufacturers can control revisions, manage the engineering change process and selectively share accurate, up-to-date BOMs with partners, suppliers and contract manufacturers.

Founded in February 2000, Arena Solutions is headquartered in Foster City, California.

To learn more about Arena Solutions:

Contact:

Michelle LaVery
Arena Solutions
media@arenasolutions.com
1.650.513.3567

Arena and Arena Solutions are trademarks of Arena Solutions, Inc., Reg. U.S. Pat. & Tm. Off. All rights reserved. Other product and company names are the property of their respective holders.