UGS Solid Edge 2D Software Hits 10,000 Download Milestone in First Month of No Cost Program

Recent Industry Research and Program’s Success Support 2D Commoditization and Drive to Managed 3D

FOR RELEASE Wednesday, October 18, 2006

PLANO, Texas - UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced that since its launch one month ago, more than 10,000 users have downloaded UGS’ no cost Solid Edge® 2D Design program.  UGS announced in September that its Solid Edge 2D Drafting software (a $995 value) is now available worldwide at no cost.

Aberdeen surveyed more than 320 manufacturers following this program announcement in its September 2006 Market Alert - Still Paying 2D Drafting Maintenance? Stop. It’s a Commodity. Results include:

• Sixty percent of survey respondents agreed that 2D drafting is a commodity;
• Sixty four percent are planning to download UGS’ no cost 2D program;
• Nearly half of manufacturers paying 2D drafting maintenance will consider replacing their current tools with the free software; and
• Seventy-seven percent of those that migrate to 3D modeling continue to use 2D drafting applications.

In addition, Aberdeen recently published The Transition from 2D Drafting to 3D Modeling Benchmark Report: Improving Engineering Efficiency.  This report found that 71 percent of companies currently using 2D drafting are planning on using 3D modeling.

“While UGS’ aim is to migrate 2D drafting users to their 3D Solid Edge and Teamcenter Express products, it suggests a larger proposition to the industry as a whole: 2D drafting is a commodity,” said Chad Jackson, research director, Product Innovation and Engineering, Aberdeen.  “In addition, our research indicated 77 percent of companies that use 3D modeling also use 2D drafting.  UGS’ initial no cost 2D program with 10,000 downloads appears to be well on its way at serving this hybrid 2D/3D part of the market.  UGS’ ability to offer manufacturers both 2D and 3D could be a key success factor.”

“We are very excited about these initial results mirroring Aberdeen’s findings,” said Bruce Boes, vice president, UGS Velocity Series Marketing.  “While the numbers are encouraging, we are most encouraged by the quality of the prospect for 3D migration and data management.  We now average 370 downloads per day and of those, nearly 20 percent plan to purchase 3D CAD.  More than 70 percent are in our targeted manufacturing industries.  This is all with just the English versions of the software.  Later this month we’ll release the product in eight additional languages.”

Initial program comments support Aberdeen’s research findings:

• Jerry Tidwell, designer, Jtech Design and Graphics: “I was expecting a ‘watered down’ 2D sketch type product and was very happy to see that it is a very professional product.  The tutorial is explicit and informative.  I have used AutoCAD for over 10 years up to version 2004. I like AutoCAD but Solid Edge 2D has features that make designing easier.”
  
• Bob Henry, manager of Engineering, Superior Highwall Miners, Inc.: “I plan to ask our largest fabrication vendors to get a copy and let them translate the files.  By implementing Solid Edge 2D in our value chain, we can anticipate a time savings with all of our vendors on the same system."
  
• Mike Hudspeth, senior designer, analyst and regular contributor to Cadalyst, Desktop Engineering and other leading CAD publications: “There is a big buzz at my company about Solid Edge 2D because engineers often have ideas that they want to jot down in CAD.  We currently use NX but Solid Edge 2D provides the flexibility of using it at home to capture their thoughts and then later translate to NX."

Solid Edge is the CAD component of the new UGS Velocity Series™ portfolio.  There is no cost to download or license Solid Edge 2D; optional support and automatic upgrades for the product are available for a nominal cost for Solid Edge and NX® customers.  For more information, visit www.solidedge.com/free2d.

For complete Aberdeen reports, visit www.aberdeen.com/includes/asp/sponsored_registration.asp?ci=/launch/report/benchmark/RA_2D_3D_3476.asp

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, 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. AutoCAD is a registered mark or trademark of Autodesk, Inc. or its subsidiaries in the United States. 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 expected benefits of the product, adoption by customers, 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, competition, failure to innovate, partnering strategy, major design errors or security flaws 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