Telelogic Named “Most Dynamic Vendor” for Model Driven Development in 2005

Popkin Software Acquisition Strengthens Company's Ability to Address Needs of General IT Market

Malmö, SWEDEN – August 8, 2005 – Telelogic, the leading global provider of software solutions that align advanced systems and software development with business objectives, today announced that it has been named “the most dynamic MDD vendor in the first half of 2005” by respected market intelligence firm IDC. According to IDC Insight, IDC analysts view Telelogic’s recent acquisition of Popkin Software as “an important step in increasing the stature of Telelogic as one of the leading model driven development (MDD) vendors.” (1) “We are pleased that IDC has recognized the merits of our strategic acquisition and continuing efforts to advance model driven development,” said Anders Lidbeck, president and CEO of Telelogic. “The addition of Popkin’s System Architect enhances the value and powerful capabilities of Telelogic’s lifecycle management tools because it bridges the gap between advanced software and systems development and the general IT marketplace, strengthening our position in that segment.” IDC based its evaluation of Telelogic’s acquisition of Popkin Software on how well the synergy and value of the two companies’ blended MDD solutions relate to the size and growth of the MDD market and the demand of end-users for process modeling tools. Analysts also considered how the acquisition affected Telelogic’s competitive position in addressing the needs of the general IT market. The IDC opinion noted the following reasons why analysts find significant value in Telelogic’s acquisition of Popkin: - “A shared foundation in UML and mutual success in addressing the development of advanced systems and software.” - “Minimal overlap in product functionality and customers.” - “Increased stability and support for the Popkin products.” - “Increased stature for Telelogic who was already one of the leading vendors in the MDD market.” “IDC estimates that the model driven development market will grow at a compounded annual rate of 9.6 percent from $513 million to $812 million by 2009,”said Stephen Hendrick, IDC. “With the acquisition of Popkin Software and its MDD products, Telelogic is positioned to capture a larger share of the market as it enhances its capabilities in the advanced system and software development market.” (2) The IDC opinion also discusses the many synergies between the products and marketing philosophy of Telelogic and Popkin Software as indicators of a successful acquisition for both the organizations and its customers. Namely, each company has a strong reputation in the marketplace for sophisticated modeling products for the development of advanced systems and software. In addition, both companies take a product-oriented approach to serving their respective global customers. IDC sees these synergies as important for a smooth acquisition without disruption to end users of Telelogic and Popkin Software products. The easy integration of System Architect with Telelogic’s integrated portfolio of application lifecycle management tools optimizes each phase of modeling, design and development. The addition of System Architect also strengthens Telelogic’s product offering and its ability to deliver higher quality results in less time, with greater predictability and lower overall costs. With System Architect, Telelogic can offer a solution that enables customers to model the enterprise architecture in System Architect, and then detail the model in Telelogic TAU. System Architect also enhances the capabilities of Telelogic DOORS, because users can link business objectives with product requirements. Companies can take advantage of these complementary solutions whether they are developing internal financial systems or advanced software and systems for automobiles, aircraft, or telecom systems. For a limited time, complimentary copies of the IDC report Telelogic Acquires Popkin Software can be downloaded at: www.telelogic.com/IDC_Popkin_Telelogic Foot note:- (1) IDC, Telelogic Acquires Popkin Software, doc. #33722, July 2005. (2) Ibid