Accelrys, Inc. (NASDAQ: ACCL) today reported financial results for the quarter ended September 30, 2006.

“We are pleased with our financial performance during the second quarter as we reported net income on a GAAP basis and significantly increased our non-GAAP net income over the prior year,” said Mark J. Emkjer, Accelrys President and Chief Executive Officer. “We continue to perform with increasing operational success as reflected in our financial results. We have also added high-level executives to our management team with both customer and industry experience and made significant strides in continuing to modernize and integrate our scientific operating platform. With these additions, and as our modernization and integration efforts are nearing their completion, I believe that we are positioning the Company for long-term growth.”

Revenue for the quarter ended September 30, 2006 of $20.2 million declined 7% from $21.7 million for the quarter ended September 30, 2005. The decline in revenue from the prior year is due to an expected decrease in revenues from certain products that were de-emphasized in connection with the Company’s restructuring and product line adjustments that have occurred over the past two years.

Total operating costs and expenses for the quarter ended September 30, 2006 were $19.4 million compared to $20.7 million for the quarter ended September 30, 2005, a decline of 7%. Excluding stock-based compensation expense, non-GAAP total operating costs and expenses were $18.1 million for the quarter ended September 30, 2006, a 12% reduction from non-GAAP total operation costs and expenses of $20.5 million for the quarter ended September 30, 2005.

The Company reported GAAP net income of $0.9 million, or $0.04 per diluted share, for the quarter ended September 30, 2006, a 19% decrease from net income of $1.2 million, or $0.04 per diluted share, in the quarter ended September 30, 2005. Excluding stock-based compensation expense, non-GAAP net income was $2.3 million, or $0.09 per diluted share, for the quarter ended September 30, 2006, a 65% increase from non-GAAP net income of $1.4 million, or $0.05 per diluted share reported in the quarter ended September 30, 2005.

At September 30, 2006, the Company had total cash, cash equivalents, restricted cash and marketable securities of $61.2 million, an increase of 16% from September 30, 2005. The Company also had $45.1 million in deferred revenue at September 30, 2006, a 6% increase from September 30, 2005.

Recent Business and Product Development Highlights:

* Strengthening of the management team with the addition of Frank Brown, Ph.D., formerly of Johnson & Johnson, as Chief Science Officer and Rick Russo, formerly of Captiva Software Corporation, as Chief Financial Officer.

* Release of Discovery Studio 1.6 which includes and integrates our open pipelining scientific operating platform, SciTegic Pipeline Pilot, for automation and extensibility, as well as additional functionality in the areas of structure-based design, protein modeling, simulations, analysis and visualization.

Conference Call Details

At 5:00 p.m. ET today, Accelrys will conduct a conference call to discuss its financial results. To participate, please dial 1-866-713-8567 (+1 617-597-5326 outside the United States) and enter the access code, 83739047, 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 1-888-286-8010 (+1 617-801-6888 outside the United States) and entering access code, 85054945, beginning 7:00 p.m. ET on October 26, 2006 through 5:00 p.m. ET on January 26, 2007.

About Accelrys

Accelrys, Inc. (ACCL) is a leading provider of software for computation, simulation and the management and mining of scientific data used by biologists, chemists and materials scientists, including nanotechnology researchers for product design as well as drug discovery and development. Accelrys technology and services are designed to meet the needs of today's leading research organizations. The Company is headquartered in San Diego, California. Its materials research and development team is based at its European Headquarters and Centre of Excellence in Cambridge, UK. For more information see http://www.accelrys.com/.