14 August 2006

UGS to Integrate Chinese Technology from Jilin University to Enhance NX Digital Product Development Software

FOR RELEASE Monday, August 14, 2006

PLANO, Texas and BEIJING – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced an original equipment manufacturer (OEM) agreement with Jilin University (JLU) to integrate one-step formability analysis technology developed by JLU into NX™ software, UGS’ digital product development solution. The technology, developed by JLU’s Institute of Auto-Body and Die Engineering (IADE) helps improve design and manufacturing processes and is expected to be available in NX commercially in the third quarter of 2006.

“We are excited about the opportunity to collaborate with talented researchers and engineers from Jilin University who share UGS’ vision in innovation and knowledge sharing to provide the best cutting-edge technology for our customers,” said Chuck Grindstaff, executive vice president of Products, UGS. “This partnership is a testament to the success of UGS’ GO PLM™ (Global Opportunities in Product Life cycle Management) initiative as well as our overall commitment to China.”

“Jilin University is very honored that UGS, a global leader in PLM, has validated our research efforts,” said Professor Ping Hu, Dean of IADE of Jilin University. “We remain committed to the success of the Jilin University/UGS Digital Manufacturing Education Centers to equip designers and engineers’ with the latest knowledge to design products. Our cooperation with UGS enables the graduates of Jilin University, especially those with NX Certifications, to be even better placed to offer employers value in today’s competitive job market.”

The Institute of Auto-Body and Die Engineering is one of the beneficiaries of UGS’ GO PLM™ Initiatives. In November 2005, UGS granted NX and NX Nastran software with a retail value of US$169 million and technical support to Jilin University and set up the Jilin University/UGS Digital Manufacturing Education Centers to help develop Certified NX Specialists for China’s growing economy.

NX transforms the entire product development process to enhance design quality and increase efficiency. More than a suite of integrated CAD, CAM and CAE applications, NX goes beyond individual and departmental productivity to improve efficiency in the overall process, and at each step in the process. A comprehensive solution, NX is built on an open foundation and advanced technologies that directly support initiatives to transform business processes.

About Jilin University

Jilin University is one of the leading national universities under the direct jurisdiction of China’s Ministry of Education and it has the highest enrollment in China. The University has nine campuses and 40 colleges offering disciplines that cover 12 academic categories. There are hundreds of advanced laboratories on these campuses, five of which are distinct National Key Laboratories. Jilin University offers a variety of degree programs; 128 undergraduate programs, 245 master’s degree programs, 143 doctoral degree programs, and 27 post-doctoral programs. In 2005, enrollment topped 63,000 full-time students, 17,000 of which are graduate students. For years the University has been playing a major role in the educational, cultural and economic life of Northeast China.

UGS GO PLM Program

UGS made the grants through its Global Opportunities in Product Lifecycle Management (GO PLM™) initiative, which leads the PLM industry in the commercial value of in-kind grants it provides at more than US$4 billion annually. Earlier in 2006, UGS announced grants to institutions in China worth more than US$1.1 billion alone. UGS’ GO PLM initiative brings together five complementary programs focused on academic partnership; community relations; regional productivity; youth and displaced worker development; and the Partners for the Advancement of Collaborative Engineering Education (PACE) program. The initiative provides PLM technology to more than 860,000 students annually at nearly 8,400 global institutions, where it is used at every academic level – from middle schools to graduate engineering research programs.

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, GO PLM, NX, Transforming the process of innovation, are trademarks or registered trademark of UGS Corp. or its subsidiaries in the United States and in other countries. NASTRAN is a trademark or registered mark of NASA. 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 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.