UGS Helps Mazda Improve Production Efficiency with Its Tecnomatix Digital Manufacturing Solution

FOR RELEASE Monday, August 11, 2006

PLANO, Texas and TOKYO – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced that the company helped Mazda Motor Corporation (Mazda) achieve significant improvements of production efficiency at its Hofu Plant with UGS’ Tecnomatix™ digital manufacturing solution.

Manufacturing simulation and planning, part of the Tecnomatix digital manufacturing portfolio, have been leveraged in the manufacturing technology area and was expanded to the manufacturing site for the first time. UGS’ Tecnomatix solution helped Mazda link production control systems with production management resulting in optimized performance. The Tecnomatix deployment contributed to Mazda’s achievements of reduction in inventory, reductions in labor costs, enhanced safe workplace practices and more reliable production instructions.

“We are pleased to see one of the leaders in the industry achieve success with UGS’ Tecnomatix solutions,” said Haruyoshi Iida, senior vice president, Japan Operations, UGS. “Their success reinforces the importance of Digital Manufacturing as core to a company’s overall PLM strategy. We look forward to an ongoing partnership with Mazda to help them achieve their goals.”

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, 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. 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 successfulness of the implementation 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 loss or downsizing of customers, competition, international operations and exchange rate fluctuations, changes in pricing models, and intellectual property. UGS has included a discussion of these and other pertinent risk factors in its annual report on Form 10-K most recently 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.