Kubotek Acquires CADKEY Corporation Assets

http://www.cadkey.com/company/press/ck_acq.asp

"Kubotek Acquires CADKEY Corporation Assets
Acquisition Includes World-Renowned CADKEY ® Mechanical
Computer-Aided Design (MCAD) Software

Osaka, Japan - December 3, 2003 - Kubotek Corporation, a developer of
integrated design, machining and measurement software and hardware
solutions, announced today that it has acquired the assets of CADKEY
Corporation of Marlborough, Massachusetts in the United States, from the
auction held under the Federal Bankruptcy Law, Chapter 11. The purpose of
the acquisition is to enhance the company's long-lasting Creation
Engineering business, and to establish a stronger base for expanding its
worldwide activities.

Kubotek Corp. plans to develop a new multi-tier product line, code named
CREATOR, which will be built on existing and established CADKEY and
Kubotek's ImageModeler product lines, with enhanced functions based on
CADKEY's "Pure Geometry" concept with optional integrated NC control
functions.

Under the headquarters' overall control, Kubotek USA, Inc. (a newly founded
wholly owned subsidiary of Kubotek Corporation) will conduct the Creation
Engineering business in the USA and European areas, and will continue
software development. Kubotek Corporation will continue to expand the
business in Japan and Asian areas, and will continue the development of the
basic software for Creation Engineering and hardware, such as its RPT
(Real/Rapid Prototyping Toolset).

Mr. Naotake Kakishita, Director of Kubotek Corporation in Osaka , has been
appointed the President of Kubotek USA, Inc. and will oversee its
operations. Kubotek USA will begin a ctivity under a new organization on
January 1, 2004 , after a preparation and adjustment period starting
December 4 this year. Meanwhile, the company will provide advantageous
programs for VARs and AUC (Annual Update Contract) holders to assure a
smooth and secured transition.

Dr. Tetsuo Kubo, President and CEO of Kubotek Corporation, states, "This
strategic acquisition and the formation of a United States subsidiary
establishes a firm foundation for expanding the worldwide sales and
marketing of our long- lasting Creation Engineering business. Our plans with
a new line of products include the development of competitive modeling
solutions, strategic sales and marketing efforts particularly in vital
global regions, increased customer-driven enhancements, and re-
establishment of the global distribution channel."

CADKEY ® was the first truly 3-Dimensional MCAD software developed for
personal computers. CADKEY Workshop, CADKEY Corporation's flagship product,
is a freeform surface and solid modeling system. It has been used worldwide
by design engineers and manufacturing professionals since 1984 in the design
of tooling, complex machinery, fixtures, molds, dies, and products such as
automobiles, sports equipment and appliances. "