SAN DIEGO–(EMWNews)–Accelrys, Inc. (NASDAQ: ACCL) today reported financial results for the

quarter ended June 30, 2008.

“Our results for the first quarter position us

to achieve our goals for fiscal year 2009,”

said Mark Emkjer, President and CEO of Accelrys. “We

are pleased that, for the third consecutive quarter, orders have

increased over orders received during the same quarters of our prior

year. This quarter’s increase was led by

robust demand for our scientific operating platform and materials

science offerings. We are especially encouraged by several large

solution opportunities which have developed in our pipeline this

quarter. We believe opportunities such as these are a strong indicator

of our progress as we execute on our strategy and focus on larger

markets for our scientific operating platform. Such opportunities

further position us for growth in fiscal year 2009 and beyond.”

First Quarter 2009 Financial Results:

• Revenue for the quarter ended June 30, 2008 increased 1% to $20.3

  million from $20.1 million for the same quarter of the previous year.

  Revenue in the current quarter was favorably impacted by continued

  growth in orders for solutions related to the Company’s

  scientific operating platform product line, partially offset by

  reduced revenue from deemphasized products.

• Non-GAAP operating income was $2.2 million for the current quarter

  compared to non-GAAP operating income of $2.1 million for the same

  quarter of the previous year. GAAP operating income for the current

  quarter was $0.1 million compared to GAAP operating income of $0.8

  million operating income for the same quarter of the previous year.

  GAAP operating income for the current quarter was unfavorably impacted

  by restructuring charges of $0.8 million.

• Non-GAAP net income was $2.2 million, or $0.08 per diluted share, for

  the current quarter compared to non-GAAP net income of $2.7 million,

  or $0.10 per diluted share, for the same quarter of the previous year.

  Non-GAAP net income for the current quarter was unfavorably impacted

  by lower interest rates and unfavorable currency fluctuations. GAAP

  net income was $0.1 million, or breakeven on a per diluted share

  basis, for the current quarter compared to GAAP net income of $1.4

  million, or $0.05 per diluted share, for the same quarter of the

  previous year. GAAP net income for the current quarter was unfavorably

  impacted by restructuring charges of $0.8 million, as well as lower

  interest rates and unfavorable currency fluctuations.

Recent Business and Financial Highlights:

• Increased order intake for the Company’s

  products and services as compared to the first quarter of the prior

  fiscal year, led by strong growth in orders for the Company’s

  scientific operating platform solutions and materials science

  offerings.

• Appointed Ilene Vogt as Senior Vice President of Worldwide Sales and

  Services. Ms. Vogt joins the Company from Actuate Corporation, a

  leading provider of business intelligence software. Ms. Vogt has been

  employed as Actuate’s Senior Vice President,

  Worldwide Operations, during the past seven years.

• Released Materials Studio 4.3, the newest version of the Company’s

  materials modeling and simulation platform. This release includes four

  new major applications which provide researchers with a complete

  multi-scale modeling environment.

• Restructured our workforce, reducing investments in our legacy

  products and adding several new employees with experience and skill

  sets which are key to our growth products and markets.

Non-GAAP Financial Measures:

This press release describes financial measures for operating income,

net income, and net income per share that exclude stock-based

compensation expense, amortization of purchased intangible assets and

restructuring charges. These financial measures are not calculated in

accordance with generally accepted accounting principles (GAAP) and are

not based on any comprehensive set of accounting rules or principles.

Management believes these non-GAAP financial measures provide a useful

measure of the Company’s operating results, a

meaningful comparison with historical results and with the results of

other companies, and insight into the Company’s

ongoing operating performance. Further, management and the Board of

Directors utilize these measures, in addition to GAAP measures, when

evaluating and comparing the Company’s

operating performance against internal financial forecasts and budgets.

These non-GAAP financial measures should not be considered as a

substitute for, or superior to, measures of financial performance

prepared in accordance with GAAP. In addition, these non-GAAP financial

measures may be different from non-GAAP financial measures used by other

companies.

For additional information on the items excluded by the Company from its

non-GAAP financial measures please refer to the Form 8-K regarding this

release that was furnished today to the Securities and Exchange

Commission.

The following table contains a reconciliation of the non-GAAP financial

measures to the most directly comparable GAAP financial measures (unaudited,

amounts in thousands, including footnotes):

	Three Months Ended June 30,
	2008			2007
GAAP Operating income	$	142		$	830
Stock-based compensation expense1		879			903
Purchased intangible asset amortization2		381			381
Restructuring charges3		842			25
Non-GAAP Operating income	$	2,244		$	2,139
GAAP Net income	$	86		$	1,419
Stock-based compensation expense		879			903
Purchased intangible asset amortization		381			381
Restructuring charges		842			25
Non-GAAP Net income	$	2,188		$	2,728
GAAP Diluted net income per share	$	0.00			0.05
Stock-based compensation expense		0.03			0.03
Purchased intangible asset amortization		0.01			0.01
Restructuring charges		0.03			—
Non-GAAP Diluted net income per share4	$	0.08		$	0.10

¹ Stock-based compensation expense is included

in our condensed consolidated statements of operations as follows:

		Three Months Ended June 30,
		2008			2007
Cost of revenue		$	98		$	81
Product development		223			230
Sales and marketing		156			201
General and administrative		402			391
Total stock-based compensation expense		$	879		$	903

² Purchased intangible asset amortization is

included in the cost of revenue line in our condensed consolidated

statements of operations.

³ Restructuring charges are included in the

restructuring charges line in our condensed consolidated statements of

operations.

⁴ Earnings per share amounts for the three

months ended June 30, 2008 and 2007 do not add due to rounding.

Conference Call Details:

At 5:00 p.m. ET, August 5, 2008, Accelrys will conduct a conference call

to discuss its financial results. To participate, please dial (800)

291-9234 (+(617) 614-3923 outside the United States) and enter the

access code, 60563058, approximately 15 minutes before the scheduled

start of the call. The conference call will also be accessible live on

the Investor Relations section of the Accelrys website at www.accelrys.com.

A replay of the conference call will be available online at www.accelrys.com

and via telephone by dialing (888) 286-8010 (+1 (617) 801-6888 outside

the United States) and entering access code, 32419872, beginning 7:00

p.m. ET on August 5, 2008 through 5:00 p.m. ET on November 5, 2008.

About Accelrys:

Accelrys develops and commercializes scientific business intelligence

software for the aggregation, mining, integration, analysis, modeling

and simulation, management and interactive reporting of scientific data.

Our solutions are used by biologists, chemists, materials scientists,

and information technology professionals for product design as well as

drug discovery and development. Our technology and services are designed

to meet the needs of today’s leading research

and development organizations including leading commercial, government

and academic organizations. Many of the largest pharmaceutical,

biotechnology, chemical, energy, aerospace and consumer packaged goods

companies worldwide use our solutions. Accelrys is headquartered in San

Diego, California. For more information about Accelrys, visit its

website at http://www.accelrys.com/.

Forward-Looking Statements:

Statements contained in this press release relating to the Company’s

or management’s intentions, hopes, beliefs,

expectations or predictions of the future are forward-looking

statements. Such forward-looking statements including, but not limited

to, statements relating to the growth of the Company, are subject to a

number of risks and uncertainties. These include risks that the Company

will not achieve its anticipated results or growth plans, and/or that

such growth will not occur due to, among other possibilities, a lack of

demand for or market acceptance of the Company’s

products, as well as the risks and uncertainties that are contained from

time to time in the Company’s SEC filings,

including, but not limited to, the Company’s

Annual Report on Form 10-K for the year ended March 31, 2008, quarterly

reports on Form 10-Q and current reports on Form 8-K. The Company’s

actual results could differ materially from those projected in such

forward-looking statements due to these risks and uncertainties, and the

Company disclaims any intention or obligation to revise any

forward-looking statements whether as a result of new information,

future events or otherwise.

ACCELRYS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited)
		Three Months Ended June 30,
		2008			2007
Revenue		$	20,300		$	20,101
Cost of revenue			3,460			3,507
Gross profit			16,840			16,594
Operating expenses:
Product development			4,278			4,309
Sales and marketing			8,117			7,540
General and administrative			3,461			3,890
Restructuring charges			842			25
Total operating expenses			16,698			15,764
Operating income			142			830
Interest and other income, net			273			992
Income before taxes			415			1,822
Income tax expense			329			403
Net income		$	86		$	1,419
Basic and diluted net income per share		$	0.00		$	0.05
Weighted average shares used to compute basic and diluted net income per share
Basic			26,890			26,552
Diluted			26,987			26,884

ACCELRYS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)
		June 30, 2008			March 31, 2008
Assets
Cash and marketable securities1		$	74,911		$	76,382
Trade receivables, net			12,002			21,976
Other assets, net2			59,069			57,733
Total assets		$	145,982		$	156,091
Liabilities and stockholders’ equity
Current liabilities, excluding deferred revenue			11,231			14,727
Total deferred revenue3			50,482			58,341
Noncurrent liabilities, excluding deferred revenue			8,060			8,140
Total stockholders’ equity			76,209			74,883
Total liabilities and stockholders’ equity		$	145,982		$	156,091

¹ Cash, cash equivalents, and marketable

securities consist of the following line items in our consolidated

balance sheet: Cash and cash equivalents; Marketable securities;

Restricted cash and marketable securities; and Marketable Securities,

net of current portion

² Other assets, net, consists of the following

line items in our consolidated balance sheet: Prepaid expenses, deferred

tax assets and other current assets; Property and equipment, net;

Goodwill; Purchased intangible assets, net; Other assets

³ Total deferred revenue consists of the

following line items in our consolidated balance sheet: Current portion

of deferred revenue; and Deferred revenue, net of current portion

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