<SUBMISSION>
<ACCESSION-NUMBER>0001157523-04-010216
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>4
<PERIOD>20041028
<ITEMS>2.02
<FILING-DATE>20041102
<DATE-OF-FILING-DATE-CHANGE>20041102
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ACCELRYS, INC.
<CIK>0001002388
<ASSIGNED-SIC>7372
<IRS-NUMBER>330557266
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0331
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-27188
<FILM-NUMBER>041112604
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>9685 SCRANTON ROAD
<CITY>SAN DIEGO
<STATE>CA
<ZIP>92121-3752
<PHONE>(858) 799-5000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>9685 SCRANTON ROAD
<CITY>SAN DIEGO
<STATE>CA
<ZIP>92121-3752
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>PHARMACOPEIA INC
<DATE-CHANGED>19951018
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d61077_8k.htm
<DESCRIPTION>ACCELRYS 8-K
<TEXT>

<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2 Final//EN">
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        X:\JOBS\04-61077\d04-61077.eep                                   -->
     <!-- Control Number: 04-61077                                                         -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Accelrys, Inc.                                                   -->
     <!-- Project Name:   Form Type: 8-K                                                   -->
     <!-- Firm Name:      Business Wire                                                    -->
     <TITLE>Accelrys, Inc.</TITLE>
</HEAD>
<BODY>

<div style='width:600;'>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>UNITED STATES <BR>SECURITIES AND
EXCHANGE COMMISSION <BR>Washington, D.C. 20549 </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FORM 8-K </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CURRENT REPORT </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center Bold-TNR" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pursuant to Section 13
or 15(d) of the Securities Exchange Act of 1934 </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date of Report (Date of
earliest event reported): October 28, 2004  </FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TD WIDTH=1% ALIGN=left height="16">&nbsp;</TD>
    <TD WIDTH=1% ALIGN=CENTER height="16"><font face="Times New Roman, Times, Serif" size=2><b>ACCELRYS,
      INC. </b></font></TD>
    <TD WIDTH=1% ALIGN=CENTER height="16">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="3" ALIGN=left height="16">
      <hr noshade size="1">
    </TD>
  </TR>
  <TR VALIGN=Bottom align="center">
    <TD colspan="3" height="16"><font face="Times New Roman, Times, Serif" size=2>(Exact
      name of registrant as specified in its charter) </font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=1% ALIGN=left height="16">&nbsp;</TD>
    <TD WIDTH=1% ALIGN=CENTER height="16">&nbsp;</TD>
    <TD WIDTH=1% ALIGN=CENTER height="16">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=1% ALIGN=left height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Delaware</FONT></TD>
    <TD WIDTH=1% ALIGN=CENTER height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0-27118</FONT></TD>
    <TD WIDTH=1% ALIGN=CENTER height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>33-0557266</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=left colspan="3">
      <hr noshade size="1">
    </TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(State or
      other jurisdiction of</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Commission</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(I.R.S.
      Employer</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>incorporation
      or organization)</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>File Number)</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Identification
      No.)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=CENTER>&nbsp;</TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=left colspan="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9685
      Scranton Road, San Diego, California</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>92121-1761</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=left colspan="3">
      <hr noshade size="1">
    </TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=left colspan="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Address
      of principal executive offices)</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Zip Code)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=left colspan="2">&nbsp;</TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom align="center">
    <TD colspan="3"><font face="Times New Roman, Times, Serif" size=2>(858) 799-5000
      </font></TD>
  </TR>
  <TR VALIGN=Bottom align="center">
    <TD colspan="3">
      <hr noshade size="1">
    </TD>
  </TR>
  <TR VALIGN=Bottom align="center">
    <TD colspan="3"><font face="Times New Roman, Times, Serif" size=2>(Registrant&#146;s
      telephone number, including area code)</font></TD>
  </TR>
  <TR VALIGN=Bottom align="center">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom align="center">
    <TD colspan="3">
      <hr noshade size="1">
    </TD>
  </TR>
  <TR VALIGN=Bottom align="center">
    <TD colspan="3"><font face="Times New Roman, Times, Serif" size=2>(Former
      name, former address and former fiscal year, if changed since last report)</font></TD>
  </TR>
</TABLE>


<BR>

<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font size=2> </font></p>

<HR SIZE=5 COLOR=GRAY NOSHADE>
</div>

<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font size=2>&nbsp; </font></p>

<div style='width:600;'>


<!-- MARKER FORMAT-SHEET="Head Sub 1 Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item
 2.02   &nbsp;&nbsp;&nbsp;&nbsp;RESULTS OF OPERATIONS AND FINANCIAL CONDITION </FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TD WIDTH=11% ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit</FONT></TD>
    <TD WIDTH=48% ALIGN=LEFT>&nbsp;</TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=center width="11%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Number</FONT></TD>
    <TD ALIGN=LEFT width="48%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Description</FONT></TD>
    <TD ALIGN=LEFT width="1%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT width="4%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=center width="11%">
      <hr noshade size="1" width="80%">
    </TD>
    <TD ALIGN=LEFT width="48%">
      <hr noshade size="1" width="30%" align="left">
    </TD>
    <TD ALIGN=LEFT width="1%">&nbsp;</TD>
    <TD ALIGN=LEFT width="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=center width="11%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>99.1</FONT></TD>
    <TD ALIGN=LEFT width="48%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Press
      Release dated October 28, 2004</FONT></TD>
    <TD ALIGN=LEFT width="1%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT width="4%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=center width="11%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>99.2</FONT></TD>
    <TD ALIGN=LEFT width="48%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Spreadsheet
      of Financial Data</FONT></TD>
    <TD ALIGN=LEFT width="1%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT width="4%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=center width="11%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>99.3</FONT></TD>
    <TD ALIGN=LEFT width="48%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Conference
      Call Transcript</FONT></TD>
    <TD ALIGN=LEFT width="1%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT width="4%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>

<BR>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On October 28, 2004, Accelrys issued
a press release announcing the Fiscal 2005 Second-Quarter and Year-to-Date Financial
Results. (See Exhibit Number 99.1 for copy of release) A conference call was also held to
discuss the financial results. (See Exhibit Number 99.3 for call transcripts) &nbsp; </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Signatures </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized. </FONT></P>


<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
  <TR VALIGN=TOP>
    <TD WIDTH=40% align="left" valign="middle"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"> </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">ACCELRYS, INC.
<BR><BR>
<BR>
By:&nbsp;&nbsp;/s/ John J. Hanlon<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
                                      John J. Hanlon,<BR>
                                      Executive Vice President and<BR>
                                      Chief Financial Officer
 </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: October 28, 2004 </FONT></P>

<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font size=2> </font></p>

<HR SIZE=5 COLOR=GRAY NOSHADE>
</div>

</BODY>
</HTML>



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>d61077_ex99-1.htm
<DESCRIPTION>ACCELRYS EXHIBIT 99.1
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2 Final//EN">
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        X:\JOBS\04-61077\d04-61077.eep                                   -->
     <!-- Control Number: 04-61077                                                         -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Accelrys, Inc.                                                   -->
     <!-- Project Name:   Form Type: 8-K                                                   -->
     <!-- Firm Name:      Business Wire                                                    -->
     <TITLE>Accelrys, Inc.</TITLE>
</HEAD>
<BODY>
<div style='width:600;'>
<BR>
<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 99.1  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accelrys Reports
Fiscal 2005 Second-Quarter and Year- to-Date<BR> Financial Results </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>SAN</B> <B>DIEGO,</B> <B>CA;</B>
<B>October</B> <B>28,</B> <B>2004</B> <B>&#150;</B> <B>Accelrys,</B> <B>Inc.</B>
<B>(NASDAQ:</B> <B>ACCL)</B> today reported financial results for the second quarter and
first six months of fiscal 2005. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Revenues in the September 2004
quarter were $14.3 million compared to $17.7 million reported in the September 2003
quarter. Lower revenues were attributed to the change in revenue recognition for annual
and multi-year licenses initiated in January 2004. Orders booked in the September 2004
quarter were $13.3 million compared to $13.7 million booked in the September 2003 quarter.
Deferred revenue was $29.5 million at September 30, 2004 compared to $19.0 million at
September 30, 2003. Operating expenses, including cost of revenue, in the current quarter
were $19.4 million compared to $20.8 million in the quarter ended September 30, 2003.
Included in expenses in the September 2004 quarter was a write-off of in-process research
and development costs of $700 thousand resulting from the Company&#146;s acquisition of
SciTegic which closed on September 27, 2004. A net loss of ($5.1) million or ($.21) per
share was reported for the September 2004 quarter compared to a net loss of ($2.1) million
or ($.09) per share reported in the comparable quarter in 2003. Cash, cash equivalents and
marketable securities was about $66.7 million at September 30, 2004. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As previously reported, the change in
revenue recognition to subscription accounting will continue to dramatically affect
reported revenue through the next couple of quarters when compared to the equivalent
periods in the prior year. During this transition, orders booked in the period are a key
indicator of the Company&#146;s performance. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;Our results for the quarter
reflect continued progress toward achieving our goals of controlling costs, improving
internal quality control systems, and achieving top-line growth,&#148; said Mark Emkjer,
president and CEO of Accelrys. &#147;With regard to top-line growth, we believe our recent
merger with SciTegic, the successful launch of our Nanotechnology Consortium, and the
numerous in-licensing agreements we have recently closed demonstrates our focus and
commitment.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the six months ended September
30, 2004 revenues were $28.5 million compared to $36.8 million in the six months ended
September 30, 2003. As noted above, lower revenues were attributed to the change to
subscription accounting for annual and multi-year licenses. Orders in the six month period
ended September 30, 2004 were $29.1 million compared to $29.9 million of orders booked in
the six months ended September 30, 2003. Operating expenses, including cost of revenue, in
the half year ended September 30, 2004 were $39.1 million compared to $43.8 million
reported in the comparable period of 2003. The write-off of $700 thousand noted above was
included in expense in the 2004 period. A net loss of ($11.3) million or ($.46) per share
was reported for the six months ended September 30, 2004. Included in the loss was a
charge of $1.1 million ($.04 per share) representing the net of discontinued operations at
Pharmacopeia Drug Discovery (PDD) for the period April 1, 2004 through April 30, 2004 at
which time the division was separated from Accelrys. In the six month period ended
September 30, 2003 a net loss of ($5.9) million or ($.25) per share was reported. Included
in the loss was a charge of $.4 million for discontinued operations at PDD, representing
about $.02 per share. </FONT></P>


<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font size=2> </font></p>

<HR SIZE=5 COLOR=GRAY NOSHADE>
</div>

<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font size=2>&nbsp; </font></p>

<div style='width:600;'>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>With regard to guidance, John Hanlon,
CFO reiterated, &#147;We expect orders to increase modestly in fiscal 2005 when compared
to the twelve months ended March 31, 2004. Revenues for fiscal 2005 will be substantially
lower as Accelrys customers adopt our new license offering that requires subscription
accounting. Deferred revenues, which will be recorded as revenue in future periods, will
increase in relation to the decrease in reported revenues. Accelrys has elected to close
its year on March 31 rather than December 31. As a result, the three months ended March
31, 2004 will be reported in future periods as a &#147;transition period&#148; per SEC
guidelines.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At 5:00 p.m. EDT today, Accelrys will
conduct a conference call to discuss its fiscal 2005 second quarter financial results.
Mark Emkjer, CEO, will host the call. To participate, please dial 1-800-706-7745
[+1-617-614-3472 outside the United States] and enter the access code, 77682879,
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. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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 45675860 from 7:00
p.m. EDT October 28, through 11:59 p.m. EST, November 11, 2004. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>About Accelrys, Inc. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accelrys, Inc. (NASDAQ: 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&#146;s leading
research organizations. The company is headquartered in San Diego, California. For more
information about Accelrys, visit its website at http://www.accelrys.com/. </FONT></P>


<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>### </FONT></P>


<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font size=2> </font></p>

<HR SIZE=5 COLOR=GRAY NOSHADE>
</div>

<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font size=2>&nbsp; </font></p>

<div style='width:600;'>



<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>This</I> <I>press</I>
<I>release</I> <I>contains</I> <I>forward-looking</I> <I>statements</I> <I>for</I>
<I>the</I> <I>purpose</I> <I>of</I> <I>the Private</I> <I>Securities</I> <I>Litigation</I>
<I>Act</I> <I>of</I> <I>1995</I> <I>(&#147;the</I> <I>Act&#148;).</I> <I>When</I>
<I>used</I> <I>anywhere</I> <I>in this</I> <I>document,</I> <I>the</I> <I>words</I>
<I>expects,</I> <I>believes,</I> <I>anticipates,</I> <I>estimates,</I> <I>and</I>
<I>similar expressions</I> <I>are</I> <I>intended</I> <I>to</I> <I>identify</I>
<I>forward-looking</I> <I>statements.</I> <I>Examples</I> <I>of forward-looking</I>
<I>statements</I> <I>herein</I> <I>include</I> <I>statements</I> <I>regarding</I>
<I>the</I> <I>impact</I> <I>of</I> <I>the change</I> <I>in</I> <I>revenue</I>
<I>recognition</I> <I>to</I> <I>subscription</I> <I>accounting</I> <I>and</I> <I>our</I>
<I>financial results</I> <I>in</I> <I>future</I> <I>periods,</I> <I>the</I>
<I>anticipated</I> <I>results</I> <I>of</I> <I>our</I> <I>recent</I> <I>merger</I> <I>with
SciTegic,</I> <I>the</I> <I>launch</I> <I>of</I> <I>our</I> <I>Nanotechnology</I>
<I>Consortium,</I> <I>recent</I> <I>in-licensing transactions,</I> <I>and</I>
<I>expected</I> <I>orders</I> <I>and</I> <I>revenues</I> <I>in</I> <I>fiscal</I>
<I>2005.</I> <I>Accelrys</I> <I>has based</I> <I>these</I> <I>forward-looking</I>
<I>statements</I> <I>on</I> <I>its</I> <I>current</I> <I>expectations</I> <I>about</I>
<I>future events.</I> <I>Such</I> <I>statements</I> <I>are</I> <I>subject</I> <I>to</I>
<I>risks</I> <I>and</I> <I>uncertainties</I> <I>including,</I> <I>but not</I>
<I>limited</I> <I>to,</I> <I>the</I> <I>successful</I> <I>implementation</I> <I>of</I>
<I>Accelrys&#146;</I> <I>strategic</I> <I>plans,</I> <I>the acceptance</I> <I>of</I>
<I>new</I> <I>products,</I> <I>the</I> <I>obsolescence</I> <I>of</I> <I>existing</I>
<I>products,</I> <I>the resolution</I> <I>of</I> <I>existing</I> <I>and</I>
<I>potential</I> <I>future</I> <I>patent</I> <I>issues,</I> <I>additional competition,</I>
<I>changes</I> <I>in</I> <I>economic</I> <I>conditions,</I> <I>and</I> <I>other</I>
<I>risks</I> <I>described</I> <I>in Accelrys&#146;</I> <I>filings</I> <I>with</I>
<I>the</I> <I>Securities</I> <I>and</I> <I>Exchange</I> <I>Commission,</I>
<I>including</I> <I>its most</I> <I>recent</I> <I>report</I> <I>on</I> <I>Form</I>
<I>10-Q.</I> <I>All</I> <I>forward-looking</I> <I>statements</I> <I>in</I> <I>this</I>
<I>document are</I> <I>qualified</I> <I>entirely</I> <I>by</I> <I>the</I>
<I>cautionary</I> <I>statements</I> <I>included</I> <I>in</I> <I>this</I> <I>document
and</I> <I>such</I> <I>filings.</I> <I>These</I> <I>risks</I> <I>and</I>
<I>uncertainties</I> <I>could</I> <I>cause</I> <I>actual</I> <I>results</I> <I>to
differ</I> <I>materially</I> <I>from</I> <I>results</I> <I>expressed</I> <I>or</I>
<I>implied</I> <I>by</I> <I>forward-looking statements</I> <I>contained</I> <I>in</I>
<I>this</I> <I>document.</I> <I>These</I> <I>forward-looking</I> <I>statements</I>
<I>speak only</I> <I>as</I> <I>of</I> <I>the</I> <I>date</I> <I>of</I> <I>this</I>
<I>document.</I> <I>Accelrys</I> <I>claims</I> <I>the</I> <I>protection</I> <I>of</I>
<I>the safe-harbor</I> <I>for</I> <I>forward</I> <I>&#150;looking</I> <I>statements</I>
<I>in</I> <I>the</I> <I>Act,</I> <I>and</I> <I>disclaims</I> <I>any</I> <I>intent or</I>
<I>obligation</I> <I>to</I> <I>publicly</I> <I>update</I> <I>or</I> <I>revise</I>
<I>any</I> <I>forward-looking</I> <I>statements contained</I> <I>herein</I> <I>to</I>
<I>reflect</I> <I>any</I> <I>change</I> <I>in</I> <I>its</I> <I>expectations</I>
<I>with</I> <I>regard</I> <I>thereto or</I> <I>any</I> <I>change</I> <I>in</I>
<I>events,</I> <I>conditions</I> <I>or</I> <I>circumstances</I> <I>on</I> <I>which</I>
<I>any</I> <I>such</I> <I>statement is</I> <I>based.</I> </FONT></P>

<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font size=2> </font></p>

<HR SIZE=5 COLOR=GRAY NOSHADE>
</div>

</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>d61077_ex99-2.htm
<DESCRIPTION>ACCELRYS EXHIBIT 99.2
<TEXT>


<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2 Final//EN">
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        X:\JOBS\04-61077\d04-61077.eep                                   -->
     <!-- Control Number: 04-61077                                                         -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Accelrys, Inc.                                                   -->
     <!-- Project Name:   Form Type: 8-K                                                   -->
     <!-- Firm Name:      Business Wire                                                    -->
     <TITLE>Accelrys, Inc.</TITLE>
</HEAD>
<BODY>

<div style='width:600;'>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 99.2  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ACCELRYS,
INC.<BR>SELECTED CONSOLIDATED FINANCIAL DATA<BR>(Dollars in thousands,
except share data)<BR>Statements of Operations</FONT></H1>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=5 nowrap><font face="Times New Roman, Times, serif" size="1">For
      the Three Months<br>
      Ended September 30, </font></th>
    <th nowrap>&nbsp;</th>
    <th colspan=5 nowrap><font face="Times New Roman, Times, serif" size="1">For
      the Six Months<br>
      Ended September 30, </font></th>
    <th nowrap>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=5>
      <hr size=1 width=95% NOSHADE>
    </th>
    <th>&nbsp;</th>
    <th colspan=5>
      <hr size=1 width=95% NOSHADE>
    </th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th><font face="Times New Roman, Times, Serif" size=2></font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2004</font>
      <hr size=1 width=100% NOSHADE>
    </th>
    <th>&nbsp;&nbsp;&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2003</font>
      <hr size=1 width=100% NOSHADE>
    </th>
    <th>&nbsp;&nbsp;&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2004</font>
      <hr size=1 width=100% NOSHADE>
    </th>
    <th>&nbsp;&nbsp;&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2003</font>
      <hr size=1 width=100% NOSHADE>
    </th>
    <th>&nbsp;</th>
  </tr>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Revenue</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 14,277</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 17,675</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 28,458</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 36,765</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cost of revenue</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,137</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,156</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,923</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10,170</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gross margin</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11,140</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12,519</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>21,535</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26,595</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Research
      and development</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,382</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,222</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8,505</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8,808</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Sales
      and marketing</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7,471</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7,170</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15,240</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16,127</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;General
      and administrative</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,680</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,214</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7,689</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8,689</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Write-off
      in-process research and development</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>700</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>700</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      operating costs and expenses</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16,233</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15,606</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32,134</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>33,624</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating
      loss from continuing operations</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5,093</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3,087</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(10,599</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7,029</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Interest
      and other income, net</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>489</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,194</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,074</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,093</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss
      from continuing operations before</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;provision
      for income taxes</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4,604</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,893</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(9,525</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4,936</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Provision
      for income taxes</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>479</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>215</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>614</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>591</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Loss from
      continuing operations</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5,083</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2,108</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(10,139</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5,527</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Discontinued
      operations:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Loss
      from discontinued operations</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(27</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,117</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(370</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net loss</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (5,083</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (2,135</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (11,256</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (5,897</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Loss
      from continuing operations per share:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;- Basic
      and diluted</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (0.21</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (0.09</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (0.42</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (0.23</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Loss
      from discontinued operatios per share:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;- Basic
      and diluted</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (0.04</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (0.02</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=left>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Net
      loss per share:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;- Basic
      and diluted</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (0.21</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (0.09</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (0.46</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (0.25</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Weighted
      average shares of common stock outstanding:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;- Basic
      and diluted</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24,463</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23,813</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24,393</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23,760</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
  </TR>
</TABLE>

<BR>
<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ACCELRYS,
INC.<BR>SELECTED CONSOLIDATED FINANCIAL DATA<BR>(Dollars in
thousands)<BR>Balance Sheets </FONT></H1>
<BR>





<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
    <TH COLSPAN=2 nowrap><font face="Times New Roman, Times, Serif" size="1">September
      30,<BR>
      2004 </font>
      <HR SIZE=1 WIDTH=100% NOSHADE>
    </TH>
    <TH nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TH>
    <TH COLSPAN=2 nowrap><font face="Times New Roman, Times, Serif" size="1">September
      30,<BR>
      2003 </font>
      <HR SIZE=1 WIDTH=100% NOSHADE>
    </TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=74% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash,
      restricted cash, cash equivalents and</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;marketable
      securities</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 66,652</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 137,127</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Trade receivables,
      net</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11,804</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13,984</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other assets,
      net</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>76,817</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>56,957</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Assets of
      Discontinued Operations</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7,375</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total assets</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 155,273</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 215,443</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Current liabilities,
      excluding deferred revenue</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 18,213</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 17,474</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Deferred
      revenue, short-term</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25,978</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16,510</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Long-term
      liabilities and reserves, excluding deferred revenue</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>682</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Deferred
      revenue, long-term</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,541</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,506</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Liabilities
      of Discontinued Operations</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,860</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total stockholders&#146;
      equity</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>106,859</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>174,093</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>
      <HR NOSHADE COLOR=#808080 SIZE=1>
    </TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total liabilities
      and stockholders&#146; equity</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 155,273</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 215,443</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>
      <HR NOSHADE COLOR=#808080 SIZE=2>
    </TD>
    <TD></TD>
  </TR>
</TABLE>
<BR>
<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font size=2> </font></p>

<HR SIZE=5 COLOR=GRAY NOSHADE>
</div>

</BODY>
</HTML>


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>4
<FILENAME>d61077_ex99-3.htm
<DESCRIPTION>ACCELRYS EXHIBIT 99.3
<TEXT>


<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2 Final//EN">
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        X:\JOBS\04-61077\d04-61077.eep                                   -->
     <!-- Control Number: 04-61077                                                         -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Accelrys, Inc.                                                   -->
     <!-- Project Name:   Form Type: 8-K                                                   -->
     <!-- Firm Name:      Business Wire                                                    -->
     <TITLE>Accelrys, Inc.</TITLE>
</HEAD>
<BODY>

<div style='width:600;'>
<BR>
<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 99.3 </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;<B>FINAL TRANSCRIPT</B> </FONT></P>
<!-- MARKER FORMAT-SHEET="Head Sub 1 Left-TNR" FSL="Workstation" -->


<!-- MARKER FORMAT-SHEET="Head Sub 1 Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;<B>Thompson
StreetEvents (SM)</B> </FONT></P>

<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;<B>Conference
Call Transcript </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 1 Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;ACCL
&#151; Q2 2005 Accelrys, Inc. Earnings Conference Call</B></FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 1 Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;Event
Date/Time: Oct. 28. 2004 / 5:00PM ET<BR>&nbsp;&nbsp;&nbsp;Event Duration: N/A</B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&copy; 2004 Thomson Financial.
Republished with permission. No part of this publication may be reproduced or transmitted
in any form or by any means without the prior written consent of Thomson Financial. </FONT></P>

<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font size=2> </font></p>

<HR SIZE=5 COLOR=GRAY NOSHADE>
</div>

<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font size=2>&nbsp; </font></p>

<div style='width:600;'>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CORPORATE PARTICIPANTS </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Sub 1 Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Mark
Emkjer </B><BR><I>Accelrys, Inc. &#151; President, CEO, Director</I></FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 1 Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>John
Hanlon </B><BR><I>Accelrys, Inc. &#151; CFO </I></FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONFERENCE CALL
PARTICIPANTS </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Sub 1 Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>John
Woolford </B><BR><I>Legg Mason &#151; Analyst </I></FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 1 Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Chris
Montano </B><BR><I>Wells Fargo Securities &#151; Analyst </I></FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PRESENTATION </FONT></H1>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operator </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Good
afternoon, ladies and gentlemen. Welcome to the Q2 fiscal 2005 Accelrys, Incorporated
earnings conference call. My name is it Amanda and I&#146;m your coordinator for today.
We&#146;ll be facilitating a Q&amp;As session toward the end of this conference. If at any
time you require assistance, key star followed by zero and a coordinator will be happy to
assist you. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At this time, I would like to hand
the conference over to your host for today, Mr. Mark Emkjer, President and Chief Executive
Officer. Please proceed sir. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mark Emkjer &#151;<I> Accelrys,
Inc. &#151; President, CEO, Director</I> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Thank
you and good afternoon everyone. Joining me today is John Hanlon, our CFO. We released
second quarter 2005, and year-to-date results earlier today. Please be advised that the
following discussion, including our responses to questions at the end of our formal
remarks, contain certain statements that constitute forward-looking statements for
purposes of the Private Securities Litigation Act of 1995 Examples of such statements
include statements relating to expected changes to our results in future periods, due to
our change to subscription accounting for annual and multi-year licenses, the anticipated
impact on our results and benefits to our customers resulting from our acquisition of
SciTegic, future innovations provided by our in house R&amp;D group, our continuing
efforts with strategic partners and our pipelines for members of our Nanotechnology
Consortium. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As always, I caution you that these
statements are only predictions and are based on current expectations and involve risks
and uncertainties. Our actual results can differ materially from those anticipated in our
forward-looking statements, as a result of these risks and uncertainties We refer you to
our public filings with the SEC for further details regarding these risks and
uncertainties. We disclaim any intent or obligation to release publicly any updates or
visions of these forward-looking statements. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We reported lower revenue today when
comparing the September 2004 quarter to the September 2003 quarter, principally due to our
revenue accounting change. It&#146;s important to note that orders booked by our worldwide
sales force were virtually flat year on year. Our expenses were lower in the current
quarter, when compared to last year, demonstrating that we continue to focus on cost
containment as we strive to deliver positive operating results at Accelyrs. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Let me turn the call over to John for
a recap of our Q2 and year-to-date numbers. John. </FONT></P>

<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font size=2> </font></p>

<HR SIZE=5 COLOR=GRAY NOSHADE>
</div>

<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font size=2>&nbsp; </font></p>

<div style='width:600;'>

<BR>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Sub 1 Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>John
Hanlon </B>&#151; <I><B>Accelrys, Inc. &#151; CFO</B></I></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Thank
you, Mark. For our second fiscal quarter ended September 30 2004, revenues were $14.3
million. This compares to the $17.7 million of revenues reported in the second quarter of
fiscal 2004. Lower revenues were attributed to the change to subscription accounting for
annual and multi-year licenses, which we introduced at the beginning of calendar 2004. The
offset to this change in accounting can be seen on our balance sheet, where deferred
revenue was $29.5 million at September 30th 2004, compared to $19 million at September 30
2003. Deferred revenue will be recognized as revenue in future quarters. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Orders booked in the current quarter
were $13.3 million, compared to bookings of $13.7 million recorded in the quarter ended
September 30, 2004. Cost of revenue was $3.1 million in the quarter ended September 30,
2004, compared to $5.1 million reported for the quarter ended September 30, 2003. In 2003
cost of revenue included 650,000 of amortization of acquired intangibles. As a result of
the acquisition of SciTegic, which we closed in late September, we will be recording
similar charges in future quarters. Operating expenses including research and development,
sales, marketing, general and administrative expenses, were $15.5 million in the September
2004 quarter, and $15.6 million in the same quarter of 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Lower G&amp;A expenses were offset by
slightly higher expenses in other departments. A charge of $700,000 was recorded in the
current quarter to record the write off of the value of software acquired from SciTegic,
which has not reached technological feasibility. Interest and other income was $489,000
for September 2004 quarter, compared to $1.2 million reported for the 2003 September
quarter. Our cash in 2004 is lower as a result of the spin-off of the labs division, and
our investment in SciTegic. Tax expense for the September 2004 quarter was $479,000,
compared to $215,000 in 2003. Higher tax expense resulted from higher taxable income in
our foreign operations. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our net loss in the current quarter
was $5.1 million or 21 cents per share. In 2003 our net loss in the September quarter was
$2.1 million or 9 cents per share. The principal driver of the larger lost was the change
in revenue recognition. For the six months ended September 30, 2004 revenue of $28.5
million compared to 36.8 million recorded in the six months ended September 30, 2003.
Orders were down slightly at $29.1 million in 2004 from $29.9 million booked in the six
months ended September 2003. The principal cause then of lower revenue was the change in
revenue recognition. As noted earlier, this difference can be seen in the increase in
deferred revenue on our balance sheet. Cost of revenue was $6.9 million in the six months
ended September, 2004 versus $10.2 million in the same period ended September 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In 2003 we reported $1.6 million of
amortization of purchased technology. Royalty expenses were lower in 2004 and the cost our
client services group were also lower in the current period. Operation expenses were $31.4
million in the six months ended September 2004, compared to $33.6 million recorded in
2003. In the six months end September 2004 we also reported the $700,000 in process
R&amp;D write off I discussed previously. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Year-to-date interest and other
income was lower in 2004 at $1.1 million compared to $2.1 million for the same period in
2003, as a result of the spin-off of the labs division and the acquisition of SciTegic.
Tax expense was flat year on year. In both six-month periods we have reported the net of
revenue and expense for the labs division as discontinued operations. In 2004, the amount
was a charge of $370,000 and in 2003, the charge was $1.1 million. The spin-off was
consummated on April 30, 2004. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our net loss for the six months ended
September 30, 2004 was $11.3 million or 46 cents per fully diluted share, compared to a
reported net loss of $5.9 million or 25 cents per fully diluted share in 2003. On
September 27 2004 we closed the SciTegic acquisition for stock and about $9 million in
cash. Our balance sheet still remains strong, with cash and equivalents at September 30
2004 being about $67 million. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As we have stated previously, our
December quarter is always our largest in terms of orders. As such, our cash flows in the
March quarter are always proportionally higher than any other quarter. With regard to
guidance, we expect orders to increase modestly in fiscal 2005 when compared to the 12
months end March 31, 2004. Revenues for fiscal 2005 will be substantially lower, as
Accelrys&#146; customers adopt our new license offerings that requires subscription
accounting. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Revenues from SciTegic will provide
some support to our year. However, the majority of SciTegic licenses, likewise require a
subscription accounting. Deferred revenue, which will be recorded as revenue in future
periods, will increase in relation to the decrease in reported revenues. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mark. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Mark Emkjer </B>&#151;<I> Accelrys,
Inc. &#151; President, CEO, Director</I> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Thank you, John. A number of
activities in the quarter were encouraging. We continue to bring new innovative science
to the market through our in-house R&amp;D group. This quarter we delivered 10 releases.
Highlights include version 6.0 of our Accord Cheminformatics components applications.
Adding support for Markush queries and improved chemistry searching performance, new
tools to support the building of chemically aware thin clients, and version 3.1 of
Material Studio modeling suite of products.  </FONT></P>


<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font size=2> </font></p>

<HR SIZE=5 COLOR=GRAY NOSHADE>
</div>

<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font size=2>&nbsp; </font></p>

<div style='width:600;'>
<BR>


<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The sales force closed a number of
wins in a very competitive environment this quarter. These contracts included Hoffmann La
Roche Worldwide, Chevron Research and Technology Company, and Abbot Laboratories. As
mentioned in our previous earnings call the Nanotechnology Consortium was launched on July
1st. In mid-September we embarked on a 3 city road show where we met with over 50
nanotechnology companies. Interest in the consortium was high, and I&#146;m delighted to
say that we now have a total of five charter members on board &#151; Two academic
institutions and three commercial entities. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Additionally, we have a healthy
pipeline and hope to have ten members by end of calendar 2004. Many of these clients
joined us for our inaugural consortium meeting in New York at the beginning of October,
where Accelrys&#146; scientists, consortium advisors and members discussed applications of
computer-aided nano-design. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our new business development team has
once again been busy this quarter. Seven agreements have been signed in the last three
months alone. A highlight was the deal closed with Sigma Aldrich. This agreement allows to
us integrate the Sigma Aldrich chemical compound catalog into our Chemicals Available for
Purchase or CAP database. The CAP database consolidates the content of chemicals suppliers
catalogs into a single source, and so collaborating with the world&#146;s leading provider
of chemical compounds was an essential part in bringing this new product to market. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In addition to in-licensing deals we
have been working on identifying new channels through which to deliver our software. One
such example of this is our agreement with Gensys, an electronic laboratory notebook
company. Under the terms of this agreement, Gensys will embed our Accord chemistry control
into its ELN software, thus providing chemical perception capabilities to Gensys
customers. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We also continue to work closely with
our strategic partners. And I would like to emphasize the continuing work we are doing
with IBM in September, we announced the porting another two of our leading live sciences
modeling and simulation tools. That being Cerius2 and Quanta to Linux. Partnering with IBM
is allowing us to accelerate our Linux porting effort and we plan to release these
products early in calendar 2005. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As indicated in previous earnings
announcements, we have been looking closely at strategic M&amp;A activity, and I am
delighted to inform that we closed our first acquisition on September 27, 2004. Bringing
together the breadth of the Accelrys&#146; product line and the strength of
SciTegic&#146;s Pipeline Pilot furthers our objective of becoming the de-facto scientific
software collaborator. The addition of workflow software to overall portfolio will allow
users to mix and match multiple applications &#151; whether they be proprietary, public
domain or competitive third-party applications into a single-research pipeline. This will
ultimately help us move from a point solution software model toward more of a services and
solutions business offering in a co-opitition environment. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In closing, I remain absolutely
committed to improving our financial performance. We will continue to restrain our
spending, implement quality systems and drive revenue growth organically and through new
business development and acquisition. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I will now allow the call to be open
for questions. </FONT></P>

<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font size=2> </font></p>

<HR SIZE=5 COLOR=GRAY NOSHADE>
</div>

<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font size=2>&nbsp; </font></p>

<div style='width:600;'>
<BR>


<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>QUESTION AND ANSWER </FONT></H1>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operator </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Operator instructions) And your
first question comes from John Woolford of Legg Mason.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>John Woolford &#151; <I>Legg
Mason &#151; Analyst</I> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Hi. Good
afternoon.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mark Emkjer &#151; <I>Accelrys,
Inc. &#151; President, CEO, Director</I> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Hey John. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>John Woolford &#151; <I>Legg
Mason &#151; Analyst</I> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Good, I guess since this might be
our last conference call with John Hanlon, I&#146;d like to say that it&#146;s been
really nice working with you, and good luck in the future as well.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>John Hanlon &#151; <I>Accelrys,
Inc. &#151; CFO</I> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>John, thanks very much. It&#146;s
been a pleasure working with you and Stefan as well.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>John Woolford &#151; <I>Legg
Mason &#151; Analyst</I> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I guess I better jump into some
quick questions here. In terms of the current quarter that we&#146;re in here now. I&#146;m
sure there&#146;s a lot of clients here looking at the new subscription license. And, I
know it&#146;s early, but I&#146;m wondering if you&#146;re getting anything, any
information anecdotally from the sales reps at this point, in terms of how the adoption
is looking at this point?  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mark Emkjer &#151; <I>Accelrys,
Inc. &#151; President, CEO, Director</I> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>John, it&#146;s Mark, I&#146;ll
answer that. The answer is the customers are embracing it. The adoption rate in the
annual license area is extraordinarily high, greater than 90%, and they like it because
it offers them flexibility in terms of being able to substitute alternate products during
the life of the contract. So, I would say the reception has been extremely favorable.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>John Woolford &#151; <I>Legg
Mason &#151; Analyst</I> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Great. Are
you actively selling the SciTegic software at this point?  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mark Emkjer &#151; <I>Accelrys,
Inc. &#151; President, CEO, Director</I> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Well, SciTegic is a separate
subsidiary, it reports to me, and SciTegic has a sales force and that sales force is
active. We are working closely with the Accelrys sales force, but quite honestly, we are
also working with competitive sales forces. What is important about SciTegic is to
recognize that it&#146;s a platform play and that it&#146;s very important that clients
be able to choose the application, be they proprietary or internal, or competitors, along
with Accelrys&#146;, and so we are very actively working with our competitors today to
sign agreements for them to utilize the platform as well. So, in terms of SciTegic, it
will be sold by, not only the SciTegic sales force, you will have Accelrys referring it,
but you&#146;ll also, we hope, have competitors that will be supporting the platform as
well.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>John Woolford &#151; <I>Legg
Mason &#151; Analyst</I> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Got it. And I don&#146;t think
publicly you have given a lot of parameters for that business since it was a private
company, and is there anything you could say on the call in terms of revenue,
historically, for that business?  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>John Hanlon &#151;<I> Accelrys,
Inc. &#151; CFO</I> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>No, John. We haven&#146;t and we won&#146;t.
It&#146;s not going to be a separate segment. So, we&#146;re going to decline to split it
out.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>John Woolford &#151; <I>Legg
Mason &#151; Analyst</I> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Okay. Fair
enough. And if I could just ask one last question, you mentioned that you           had
some big wins in the quarter, can you talk a little bit about pricing? Is it
          stable, is it going down? What are you seeing there?  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mark Emkjer &#151; <I>Accelrys,
Inc. &#151; President, CEO, Director</I> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pricing we are still seeing
continued discounting at levels that we experienced last year and possibly even slightly
higher. And I would say particularly in the life sciences area, and again, I think we
have competitive situations where, you know, people are pricing it to win. But, you know,
it&#146;s not significantly higher than last year, but it&#146;s still, in my opinion, an
issue.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>John Wooford &#151; <I>Legg
Mason &#151; Analyst</I> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Great. Thanks.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operator </FONT></H1>


<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font size=2> </font></p>

<HR SIZE=5 COLOR=GRAY NOSHADE>
</div>

<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font size=2>&nbsp; </font></p>

<div style='width:600;'>
<BR>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>And your next question comes from
Chris Montano of Wells Fargo Securities.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Chris Montano &#151; <I> Wells
Fargo Securities &#151; Analyst</I> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Thank you. I had a question
regarding the competitive landscape, could you talk a little bit what you were seeing in
your major projects, such as the wins that you saw this quarter, please?  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mark Emkjer &#151; <I>Accelrys,
Inc. &#151; President, CEO, Director</I> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sure.  I&#146;m
going to break it out by market segment, and in the life sciences area           I would
say stabilization. We are seeing, you know, the proposals and contracts           coming
through at levels very similar to last year. In the biotech segment, we           are not
having the number of customers going out of business at the rate that           the
Company has experienced over the past couple of years, and in the material
          sciences and in the informatics segments, quite a bit of enthusiasm in terms of
          pipeline we are building, we are seeing a lot of interest based upon the nano
          industry. There are nanotech centers being started in commercial, government
and           academic settings throughout the world. So we are seeing pipeline build in
that           area, and we&#146;re seeing a lot of pipeline build in the informatics
area as           well.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Chris Montano &#151; <I>Wells
Fargo Securities &#151; Analyst</I> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Thank you very much.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operator </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As a reminder , ladies and
gentlemen, that is star 1 for questions. And there are no further questions.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mark Emkjer &#151; <I>Accelrys,
Inc. &#151; President, CEO, Director</I> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Again, thank you for participating
in our call. We look forward to updating you on our progress in January. As always, we
thank you for your continued support of Accelrys.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operator </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ladies and gentlemen, thank you for
your participation in today&#146;s conference. This does conclude your program and have a
wonderful day.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>DISCLAIMER </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Thomson Financial reserves the right
to make changes to documents, content, or other information on this web site without
obligation to notify any person of such changes. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In the conference calls upon which
Event Transcripts are based, companies may make projections or other forward-looking
statements regarding a variety of items. Such forward-looking statements are based upon
current expectations and involve risks and uncertainties. Actual results may differ
materially from those stated in any forward-looking statement based on a number of
important factors and risks, which are more specifically identified in the companies&#146;
most recent SEC filings. Although the companies may indicate and believe that the
assumptions underlying the forward-looking statements are reasonable, any of the
assumptions could prove inaccurate or incorrect and, therefore, there can be no assurance
that the results contemplated in the forward-looking statements will be realized. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>THE INFORMATION CONTAINED IN EVENT
TRANSCRIPTS IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY&#146;S CONFERENCE CALL
AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL
ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE CONFERENCE
CALLS. IN NO WAY DOES THOMSON FINANCIAL OR THE APPLICABLE COMPANY OR THE APPLICABLE
COMPANY ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON
THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY EVENT TRANSCRIPT. USERS ARE ADVISED TO
REVIEW THE APPLICABLE COMPANY&#146;S CONFERENCE CALL ITSELF AND THE APPLICABLE
COMPANY&#146;S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&copy; 2004, Thomson
StreetEvents All Rights Reserved. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font size=2> </font></p>
<BR>
<HR SIZE=5 COLOR=GRAY NOSHADE>
</div>

</BODY>
</HTML>



</TEXT>
</DOCUMENT>
</SUBMISSION>
