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MKS Announces Preliminary Third Quarter Results

Waterloo ON, February 1, 2006 – MKS Inc. (TSX:MKX) today announced preliminary financial results for the third quarter of fiscal 2006 ended on January 31, 2006. All amounts are reported in US dollars under United States Generally Accepted Accounting Principles.

Waterloo ON, February 1, 2006 – MKS Inc. (TSX:MKX) today announced preliminary financial results for the third quarter of fiscal 2006 ended on January 31, 2006. All amounts are reported in US dollars under United States Generally Accepted Accounting Principles.

MKS anticipates total revenue to be between $13.2 million and $13.5 million for the quarter. Income from operations for the third quarter of fiscal 2006 is expected to be in the range of $1.4 million to $1.8 million, or $0.03 to $0.04 per share. These estimated financial results are based on preliminary financial data for the Company’s third quarter of fiscal 2006, which remains subject to final review and verification in accordance with generally accepted accounting principles. The Company has not yet determined whether there will be any accounting for income taxes in the third quarter, although the Company believes that there are sufficient losses carried forward to shelter the liability for any cash taxes arising in fiscal 2006.

MKS also announced that it has signed a significant follow-on license agreement with a longstanding customer. Under the terms of the new agreement MKS will expand deployment of its products within that customer’s organization substantially increasing the installed base. MKS will receive a license fee of $2.2 million plus additional maintenance fees from this agreement. The $2.2 million license fee is included in the revenue estimate set out above.

The Company also reported that all of its outstanding Class 1 and Class 2 Purchase Warrants were exercised by holders before their expiry on January 22, 2006 for proceeds during the quarter of $3.1 million. Cash balances at January 31, 2006 are expected to be approximately $13 million, up from $10.5 million at October 31, 2005. Shares outstanding at the end of the quarter were 49.6 million.

About MKS
MKS is the premier provider of application lifecycle management solutions for the global 1000. MKS’s solution spans from requirements management to deployment providing customers with enhanced development productivity, visibility over processes, and improved IT controls for regulatory compliance. MKS’s software is distinguished by its single architecture and deep integration of features delivering collaboration throughout the development lifecycle, rapid implementation and low total cost of ownership. Founded in 1984, MKS serves more than 10,000 customers in countries across the world. Whether through deployment of MKS’s solution strategically on an enterprise scale, or by leveraging individual components to solve project-level challenges, our customers can use MKS’s software to enable higher levels of process maturity, better manage global development activity and safeguard their most critical business applications and software assets. Under its widely known MKS Toolkit brand, MKS also provides UNIX-Windows co-existence and system administration that significantly cut development and administrative costs and reduce time to market, while enabling enhanced performance. More information about MKS can be found at http://www.mks.com or by calling 1-800-265-2797 (US & Canada), +49-711-351775-0 (Germany), +44-1483-733900 (United Kingdom) and 1-519-884-2251 (Rest of World).

Copyright © 2006 MKS Inc. MKS, MKS Integrity Suite, and MKS Toolkit are trademarks or registered trademarks of MKS Inc. All other trademarks mentioned in this release are the property of their respective owners.

This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect the Company’s current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause the Company’s actual results, performance or achievement to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. These factors include, but are not limited to, management of growth, importance of maintenance contracts, economic uncertainty, international sales, dependence on management and key employees, undetected errors in software, protection of intellectual property, reliance on third party relationships. limited financial resources, litigation, intense competition, rapid technological change, development of the enterprise ALM market, and such other risks and uncertainties detailed from time to time in filings made by the Company with Canadian securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. Although the Company believes the expectations represented by such forward looking statements are reasonable, there can be no assurance that those expectations will prove to be correct. The Company does not intend and does not assume any obligation to update these forward-looking statements.

US and Canada Media Contact:
Douglas Sawatzky, Chief Financial Officer
MKS Inc.
Phone: 519-883-3252
Email: dsawatzky@mks.com

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