Joint Venture Framework agreement between AVIC-BIAM and ESI Group

Regulatory News:

ESI Group (Paris: ESI), pioneer and world-leading solution provider in Virtual Prototyping for manufacturing industries, announces the signature of a joint venture framework agreement with BIAM, the Beijing Institute of Aeronautical Materials. Executed during the 9th Zhuhai International Airshow, a biennial aerospace trade show and the largest showcase for China's aviation and aerospace industry, this agreement builds on a strategic partnership agreement signed in Paris on 13 June, 2011.

As one of the core scientific Research Centers of AVIC (the Aviation Industry Corporation of China), BIAM is responsible for Research in Materials Technology and the manufacturing of advanced materials for aeronautical applications. BIAM’s mission naturally complements the focus of ESI Group on Virtual Manufacturing and Virtual Testing as the foundation of Virtual Prototyping and of the holistic vision of Virtual Engineering. The new joint venture will engage in providing solutions that are based on realistic and reliable material modeling, and proven physical manufacturing and performance testing by proven virtual processes.

At the signing ceremony held in Zhuhai on 15 November, Dr Dai ShengLong, President of BIAM, stated "Today, sciences, technology and economy are developing fast. In this key stage of strategic transformation, BIAM will collaborate with ESI as a world class partner by joining expertise in complementary technologies. Together, we will establish a Joint Research & Development Center and Joint Venture Company. Our aim will be to transform innovation technology and marketing, and to create a new future for advanced materials science, technology and industry development.”

Dr Alain de Rouvray, Chairman and CEO of ESI Group, responded to Dr Dai by commenting that "Today new materials are at the core of industrial innovation and business competitiveness”. Adding: "A successful partnership requires three symbiotic constituents: Trust, Alignment, and Ambition. BIAM and ESI have, through several years of successful collaboration, experienced and shared all three. The Joint Venture will consolidate the commitment to "co-create” the innovative solutions of the future.”

Echoing this sentiment, and recalling the signing of the partnership agreement in 2011, Mr Xu Zhanbin, Vice President of AVIC, commented: "The Joint Venture company between AVIC-BIAM and ESI is not only an important decision, leading to action and implementation of AVIC’s strategy to expand international technical cooperation, but also a strong commitment to reform, to upgrade technology and to spur innovation in AVIC. This framework agreement demonstrates a willingness to open domestic marketing, to establish a win-win situation, and to bring technical innovation, development and also strong business profit for both parties.”

The scope of business of this new Chinese Joint Venture company will include the distribution of ESI’s Virtual Engineering software solutions; associated hardware; related technical support services; and customized software development to meet specific Chinese user needs. It will have a strong focus on China’s emerging commercial, business and general aviation sector and will enable the adoption of strategic manufacturing technologies developed at BIAM. Both parties share the conviction that their many technical synergies and spirit of team work will cause their joint venture to prosper, delivering sustainable and mutual success.

About BIAM and AVIC

BIAM is the most advanced materials research center in China and a key institute of AVIC, the ultra large state-owned aerospace enterprise and investment institution, authorized and managed by the Central People’s Government. AVIC is managed through 10 business units: defense, transport aircraft, aviation engine, helicopters, avionics, general aviation aircraft, aviation research and development, flight test, trade & logistics, asset management. It has nearly 200 subsidiaries and over 20 listed companies. For further information, visit http://www.avic.com.cn/.

About ESI Group

ESI is a pioneer and world-leading provider in Virtual Prototyping that takes into account the physics of materials. ESI boasts a unique know-how in Virtual Product Engineering, based on an integrated suite of coherent, industry-oriented applications. Addressing manufacturing industries, Virtual Product Engineering aims to replace physical prototypes by realistically simulating a product’s behavior during testing, to fine-tune fabrication and assembly processes in accordance with desired product performance, and to evaluate the impact on product use under normal or accidental conditions. ESI’s solutions fit into a single collaborative and open environment for End-to-End Virtual Prototyping. These solutions are delivered using the latest technologies, including immersive Virtual Reality, to bring products to life in 3D; helping customers make the right decisions throughout product development. The company employs about 900 high-level specialists worldwide covering more than 30 countries. ESI Group is listed in compartment C of NYSE Euronext Paris.

For further information, visit www.esi-group.com.

For more ESI news, visit: www.esi-group.com/newsroom

Connect with ESI on Twitter, Facebook, and YouTube.