Arena Solutions Kicks Off 2006 with Record-Breaking Quarter Customer Adoption Grows 80 Percent from Previous Quarter - 300 Percent from Previous Year

FOSTER CITY, Calif., May 10, 2006 - Arena Solutions, the leading provider of on-demand product lifecycle management (PLM) software for manufacturers, today announced that its first fiscal quarter of 2006, ending March 31, 2006, was the most successful in the company�s history. This milestone represents an average quarter-over-quarter growth of 40%, further establishing Arena as the fastest-growing provider of PLM on-demand.

More than 15,000 users leverage Arena PLM to tackle the challenges brought about by increasing globalization, new compliance regulations, and outsourcing. By providing a centralized environment for managing product data, Arena PLM makes it easy for OEMs, suppliers and outsourced partners to collaborate in real-time around a single set of information-regardless of geographic location or IT infrastructure. As a result, manufacturers are able to deliver higher quality products to market faster, better manage and maintain regulatory compliance, and collaborate more effectively with an ever-expanding global supply chain for improved performance.

Leading manufacturers from the electronics, medical, consumer, and automotive industries continue to adopt Arena PLM on-demand over traditional client server PLM solutions to better manage their product data. A partial list of new customers includes:

• Netstreams, a global leader in exciting solutions for the digital life with �Networked Digital Entertainment� systems, which can connect all digital entertainment devices over Internet Protocol.
• Spiration Inc., a leading medical device manufacturer that manufactures innovative medical devices for the treatment of lung diseases.
• Kongsberg Mesotech, a leader in maritime technologies including sophisticated cameras for the NATO Submarine Rescue Vehicle.
• Focus Enhancements, a leader in advanced digital video production, management and presentation technology.
• Pay By Touch, the global leader in biometric authentication and payment solutions.

Delivered as a secure, web-based Internet service, Arena PLM dramatically reduces the cost and complexity to deploy a PLM solution. In addition, Arena PLM features an AJAX-based user interface, enabling customers to have a much richer and easier to use experience. By lowering the barriers to adoption and providing a simpler yet powerful customer experience, Arena Solutions levels the playing field, allowing small to mid-size manufacturers to more effectively compete with their larger counterparts.

�We�re thrilled with our success to date, and look forward to accelerating customer adoption with each passing quarter,� said Michael Topolovac, Chief Executive Officer, Arena Solutions. �Our continued growth underscores the increasing marketing demand for a PLM solution that provides the critical PLM functionality OEMs require without the IT headaches or high-costs typically associated with client server solutions.�

About Arena Solutions 

Arena Solutions is the leading provider of on-demand product lifecycle management solutions for manufacturing companies of all sizes. As the only true on-demand, secure Internet based PLM service, Arena PLM provides a superior alternative to complicated, lengthy and expensive traditional PLM software deployments. Through its award-winning service, Arena enables product manufacturers and global outsourced supply chains to streamline their outsourcing, improve operational efficiencies, and speed time-to-market. Offering the broadest suite of on-demand PLM solutions on the market today - Arena PLM Workgroup Edition, Arena PLM Professional Edition, and Arena PLM Enterprise Edition - Arena PLM has been adopted by over 15,000 users across companies at all stages of development.

Arena Solutions� market changing approach to PLM has received significant recognition in the industry, including Manufacturing Business Technology�s Top 40 Emerging Vendors, the 2005 Supply & Demand Chain Executive 100, Industry Weeks �Technology of the Year - Notable Innovators� and Start Magazine�s �Hot� Companies.

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

www.arenasolutions.com

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