Intergraph Reports First Quarter 2005 Results

The Company has raised its guidance for 2005 operating income before restructuring (a non-GAAP measure) from $40.0 - $43.0 million to $42.0 - $44.0 million due to reduced expenses derived from the organizational realignment. The Company does not expect to realize the full benefits of the annual expense savings in 2005 due to the phased approach of the organizational realignment over the next five quarters. The Company has lowered its guidance for 2005 operating income from $38.0 - $41.5 million to $34.5 - $38.0 million due to the restructuring charges that it now expects to report over the remainder of the year. Intergraph expects to begin reporting financial results by its two divisions, PP&M and SG&I, in the second quarter of 2005.

First Quarter Business Highlights

-- Intergraph repurchased 5.4 million shares for approximately $150 million via an Accelerated Stock Buyback (ASB) on March 22, 2005. The Company has repurchased more than 25 million shares for approximately $635 million since 2001, reducing its total shares outstanding by more than 40%.

-- In January 2005, Intergraph resolved all pending patent litigation by entering into a global settlement with Hewlett-Packard Company (HP). Per the terms of the settlement, HP tendered a payment of $141.1 million and each company granted a cross-license to each others' patent portfolio.

-- Intergraph Mapping and Geospatial Solutions (IMGS) deployed its geospatial data management solution for the Hungarian Border Guard Command and Control System (BOGCOS). The new geospatial intelligence system protects 10 million people by supporting control operations along the national boundary of Hungary.

-- IMGS installed an enterprise Web mapping system at San Ramon Valley, CA Fire Protection District (SRVFPD). The new Web-based system links the department's Computer Aided Dispatch (CAD) system, Records Management System (RMS) and geospatial databases. Geospatial data from the new system will be linked into emergency response units via onboard mobile data computers.

-- Process, Power & Marine (PP&M) executed a three-year contract with Bechtel for global use of PP&M's suite of enterprise software applications, signed a global agreement with Sinopec (China's largest chemical and oil & gas company), and announced a new IntelliShip customer, Korea's Daewoo, one of the top three shipyards in the world.

-- Daratech Inc., an independent market research and technology assessment firm based in Cambridge, MA, announced that Intergraph leads the global plant creation and shipbuilding software markets with a 2004 revenue-based market share of 30%. In addition, Daratech announced that Intergraph also led the worldwide overall plant creation market for the 12th consecutive year with a 2004 revenue-based market share of 31%.

-- Intergraph Solutions Group (ISG), in-line with our Force Protection and Homeland Security strategy, was selected by Fort Jackson as a key partner on a team led by General Dynamics. The project includes the implementation of Intergraph's Incident Command software and an Enhanced 911 System that will be implemented in the newly built Public Safety Center.

-- ISG, in partnership with Naval Air Systems Command (NAVAIR), opened the Logistics Information Technology and Maintenance Integration Solutions (LITMIS) Laboratory. The LITMIS Laboratory is capable of emulating near real life conditions encountered in warfighter performance and improves weapon system readiness support through timely software and process delivery.

-- Intergraph Public Safety (IPS) generated first quarter orders of $11.9 million and increased backlog to $40.8 million. IPS orders in the first quarter included Raleigh-Durham Airport, Lauderdale County, Alabama, Geneva, Switzerland, Gentofte Fire Brigade, which represents the first IPS sale into Denmark, and follow-on orders from the German Border Guards.

Business Unit Performance

The Company believes that providing the operating performance of each of its four business units is useful to investors. The following table summarizes the financial results of the business units for the first quarter ended March 31, 2005.
(dollars in millions)          Quarter Ended March 31, 2005
                                                     Elimi-   Total 
                         IMGS  PP&M    ISG    IPS   nations Intergraph
                        ------ -----  -----  ------ -------- ---------
Revenue                 $49.3  $38.7  $31.5  $18.4   ($1.5)   $136.5
 growth                 (1.6%)  17.2% (5.3%)   6.7%              3.2%
Operating income -      
 restructuring (a)       $1.7   $6.3   $2.9   $2.4   ($5.7)     $7.6
Operating margin -      
 restructuring (a)        3.3%  16.4%   9.2%   13.2%                            5.6%
  charges                                  $1.0            -            -            -        $0.7            $1.7
Operating  income                  $0.6      $6.3      $2.9      $2.4      ($6.4)          $5.9
Operating  margin                    1.3%    16.4%      9.2%    13.2%                            4.3%
(a)  See  "Non-GAAP  Financial  Measures."

Intergraph  Mapping  and  Geospatial  Solutions  (IMGS):
(dollars  in  millions)
                                                                                      Quarterly  Results      
                                                                                        Q1          Q4          Q1      Ending
                                                                                      2005      2004      2004    Backlog
                                                                                    ------  ------  ------  -------

Revenue                                                                      $49.3    $55.3    $50.2      $56.6
Year-over-year  growth                                          (1.6%)  (5.4%)      7.5%

Operating  income  -  before  restructuring        $1.7      $2.5      $2.6
Operating  margin  -  before  restructuring          3.3%      4.5%      5.2%

Restructuring  charges                                            $1.0            -            -

Operating  income                                                      $0.6      $2.5      $2.6
Operating  margin                                                        1.3%      4.5%      5.2%

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