UGS Accelerates Momentum in High-growth Mid-Market Segment for Product Lifecycle Management

PLANO, Texas – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced continued momentum in its mid-market growth strategy. 
Highlights include:

UGS reported a 35 percent year-over-year increase in its indirect channel license revenue and strong increases in all three zones.

UGS also reported that it already met its year-end channel capacity goal - increasing the channel by 50 percent.

UGS also today announced a new reseller agreement with Microsoft that extends the strategic alliance the two companies announced earlier this year.  Under the new agreement, UGS becomes the first PLM company authorized to sell SQL Server 2005, Microsoft’s flagship database software directly to companies looking for a comprehensive PLM solution fully supported on the Microsoft® platform. Teamcenter Express, UGS’ cPDM product for the mid-market, supports SQL Server 2005.

 “We are proud of our accomplishments in the first year of our new global channel program,” said Kerry Grimes, vice president, Mid Market and Global Channel Sales, UGS.  “We met our channel expansion goal of increasing our capacity by 50 percent early.  We also continue to provide leading technology and work closely with our channel to sell and implement.”

UGS Velocity Series and Mid-market third quarter wins

• Wanfeng Auto Holding Group selected UGS’ Teamcenter® Express software for its first cPDM system.
  
• Pewag, an Austrian snow chain manufacturer, which purchased NX CAM Express through ACAM Systemautomation GmbH.
  
• POSCO Engineering & Construction Co., Ltd., a global engineering and construction firm, which selected Teamcenter Express software for its first product data management (PDM) system and expanded its Solid Edge® software deployment.
  
• Meerecompany, a South Korean mid-sized manufacturer of LCD/semiconductor equipment, which selected Solid Edge® and Teamcenter® Express as its first PLM system.
  
• Siemens Gas Turbine Parts Limited (SGTP), a company in the Siemens Power Generation Group, which selected and successfully implemented Teamcenter™ Express as a PLM backbone.
  
• Radkersburger Metallwarenfabrik, an Austrian-based die manufacturer, which selected NX™ CAM Express software.

Pipeline growth and market recognition feed momentum
In addition to new wins and channel expansion, UGS saw mid-market pipeline growth through its no cost Solid Edge 2D Drafting program.  More than 10,000 users downloaded the program in the first 30 days.  Nearly 20 percent indicated an interest to purchase 3D CAD.

VARBusiness - the leading magazine covering strategy and technology trends for solution providers and technology integrators - recognized Bill McClure, UGS’ vice president of UGS Velocity Series, as one of its top 10 semifinalists for Technologist of the Year.  The award recognizes product development leaders who work with their channel to develop and sell products. For more information, visit www.ugs.com/SMB.

About UGS Velocity Series
The UGS Velocity Series™ portfolio is a comprehensive family of modular, yet integrated solutions addressing the product lifecycle management (PLM) needs of the mid-market. Consisting of a preconfigured family of digital product design, analysis, manufacturing and data management software offerings, UGS Velocity Series leverages the industry’s best practices to provide significant breakthroughs in ease-of-use and deployment. Mid-size manufacturers can leverage the power of UGS Velocity Series to transform their process of innovation while maintaining a low total cost of ownership; and all UGS Velocity Series products are completely scalable to the full range of UGS’ industry leading, enterprise-level PLM portfolio.

About UGS
UGS is a leading global provider of product lifecycle management (PLM) software and services with nearly 4 million licensed seats and 46,000 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, Teamcenter, NX, Solid Edge, Velocity Series 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.  Microsoft is a trademark or registered trademark of Microsoft 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 our business, results of operations expected performance by our channel partners 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, substantial, prolonged economic downturns, international operations and exchange rate fluctuations, terrorist activities, acquisitions, changes in pricing models, 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

Dora Smith

UGS

+1 314 264 8480

dora.smith@ugs.com