GM Names UGS Supplier of the Year for the Second Consecutive Year

Award Recognizes UGS for Exceeding GM’s Expectations, Highlights UGS Commitment to Customer Satisfaction

FOR RELEASE Monday, April 2, 2007

PLANO, Texas and DETROIT – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced that General Motors selected UGS as a 2006 Supplier of the Year.  This is the second consecutive year that UGS has won the award for its overall business performance in enabling GM to transform its process of innovation by significantly reducing up-front vehicle development time.  The 15th annual award – themed the “Best of the Best” -- was given during ceremonies Saturday, March 31 at the JW Marriott Orlando Grande Lakes in Orlando, Fla.

“We are proud to honor UGS as one of the ‘Best of the Best’ GM suppliers in 2006,” said Bo Andersson, GM group vice president, Global Purchasing and Supply Chain. “UGS achieved the award based on outstanding performance in 2006.  We appreciate their energy, hard work and dedication to the success of GM.”

UGS is among an elite group of suppliers selected by GM that drive to be world class and exceed GM’s expectations in quality, service, technology and price, and the only IT supplier to be honored.  UGS is recognized for its Teamcenter® software, UGS’ digital lifecycle management solution and the world’s most widely-used PLM portfolio; NX® software, UGS’ comprehensive digital product development solution; and Tecnomatix™ software UGS’ digital manufacturing portfolio.

“To receive the GM 2006 Supplier of the Year Award is truly an honor and to win the award for the second consecutive year is a testament to UGS’ commitment to our customers,” said Tony Affuso, chairman, CEO and president of UGS.  “We are proud of our long-standing relationship with GM, which supports the world’s largest global product development implementation, and we strive for continuous product and process innovation to support GM.”

The GM Supplier of the Year award began as a global program in 1992.  Winners are selected by a global team of executives from purchasing, engineering, manufacturing and logistics who base their decisions on supplier performance in quality, service, technology and price.  This year, General Motors honored 89 suppliers for their outstanding performance throughout 2006.

UGS PLM Technology
NX, UGS’ next-generation digital product development system, helps companies transform the product lifecycle.  With the industry’s broadest suite of integrated applications, NX touches the full range of development processes in product design, engineering and manufacturing.  NX allows customers to conceive, design, engineer and validate discretely manufactured products – and capture their product definitions – in a fully digital environment.
Teamcenter, UGS’ digital lifecycle management solution, powers innovation and productivity by connecting people and processes with knowledge.  Teamcenter’s comprehensive portfolio of proven digital lifecycle management solutions is built on an open PLM foundation.  Teamcenter is the de facto standard for PLM deployments, and is backed by UGS’ leadership in delivery.

Tecnomatix, UGS’ digital manufacturing portfolio, provides the widest domain coverage from part planning all the way through production management and feedback to product design. Tecnomatix is the only digital manufacturing solution of its kind that covers the depth and breadth of digital manufacturing requirements and is used by more industry leaders in more industry verticals than any other comparable digital manufacturing solution.

About UGS
UGS is a leading global provider of product lifecycle management (PLM) software and services with 4.3 million licensed seats and 47,000 customers worldwide.  Headquartered in Plano, Texas, UGS’ vision is to enable a world where organizations and their partners collaborate through global innovation networks to deliver world-class products and services while leveraging UGS’ open enterprise solutions, fulfilling the mission of enabling them to transform their process of innovation. 
Note:  UGS, NX, Teamcenter, Tecnomatix and Transforming the process of innovation are trademarks or registered trademarks of UGS Corp. or its subsidiaries in the United States and in other countries.  GM is a trademark or registered mark of General Motors Corporation or its subsidiaries in the United States and in other countries.  All other trademarks, registered trademarks or service marks belong to their respective holders.

The statements in this news release that are not historical statements, including statements regarding the expected benefits of the customer relationship, the benefits of the product, continued innovation and other statements identified by forward looking terms such as "may," "will," "expect," "plan," "anticipate" or "project," are forward-looking statements. These statements are subject to numerous risks and uncertainties which could cause actual results to differ materially from such statements, including, among others, risks relating to developments in the PLM industry, loss or downsizing of customers, competition, failure to innovate, international operations and exchange rate fluctuations, changes in pricing models, partnering strategy, and intellectual property. UGS has included a discussion of these and other pertinent risk factors in its quarterly report on Form 10-Q for the period ended June 30, 2006 filed with the SEC.  UGS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Primary Contact

Salim Rahimi

UGS

+1 972 987 3206