15 June 2006

UGS Grants US$1.1 Billion in Software to Chinese Colleges and Universities; Value of Grants is Largest-ever Announced in China

FOR RELEASE Thursday, June 15, 2006

BEIJING and PLANO, Texas – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced in-kind software grants with a commercial value of US$1.1 billion to 87 colleges and universities in China in what the company believes is the largest-ever set of grants announced in China.

As a result of these grants, 45,000 undergraduate and graduate college and university students yearly in China will now have direct access to UGS’ world-class PLM software.  The software helps students and faculty conceive, design, engineer and validate projects using the same tools that today’s leading global manufacturers employ.  Technologists and engineers at leading Chinese companies such as Shanghai Automotive Industrial Corp., Shenyang Liming and Konka already use UGS’ PLM software in their product innovation efforts, joining global leaders like Procter & Gamble, Boeing, Dyson, Ford, General Dynamics, General Motors, Hitachi, Lockheed Martin, Nissan and Pratt & Whitney.

“We are delighted to work with companies like UGS that share our vision of training the next generation of Chinese engineering talents in order to meet the needs of the development of economic globalization, and leverage our opportunity to build and market globally competitive products,” said Shi Pengjian, deputy director, Department of Higher Education, Ministry of Education. “Ultimately, both the Chinese and global economies benefit from products that better meet customer demands and are brought to market quicker and at the best possible price.  In order to maintain rapid economic growth of China, China is transforming its way of economic growth according to scientific theories on development. That is to establish a kind of new way of economic development, which is generated by innovation. New economic growth will tighten links between China and the rest of the world, and will be a significant force for improving international cooperation and relations.”

“These grants highlight UGS’ firm commitment to the future economic growth of China and the ability of Chinese companies to participate in and contribute to the global innovation networks operated by the world’s leading enterprises,” said UGS Chairman, CEO and President Tony Affuso.  “China will produce one-third of the world’s new engineers this year, and leading global manufacturers need these engineers – and the thousands to be educated in China in the years to come – to be able to understand and apply the latest technology as part of the global innovation networks they are leveraging to build the most innovative products.

”We want to help transform ‘Made in China’ to ‘Made with China’ by helping Chinese companies collaborate with other companies as part of these global innovation networks, thereby creating a historic win-win-win in that UGS’ business partners, customers and the communities in which we all work and live on a global basis all benefit.”
UGS Commitment to China

The UGS grants announced today include those made of UGS PLM software to seven leading Chinese universities: Guangdong University of Technology; Guangxi University of Technology; Inner Mongolia University of Technology; Nanjing Institute of Technology; Nanjing University of Aeronautics and Astronautics; South China University of Technology; and Southeast University of Technology.  In addition, they include a grant of UGS® PLM software to Huazhong University of Science and Technology, a leading Chinese vocational university that the Ministry of Education has chosen to administer the supply of UGS software to 80 junior colleges throughout the country.

Over the past 10 years, UGS has now made in-kind grants of its software to approximately 450 academic institutions in China with an in-kind commercial value totaling US$4.4 billion.  Those institutions include YanCheng Institute of Technology, which last year opened the first UGS College at the institute to address the growing demand for experienced technologists in the Chinese automotive market by integrating UGS software into its curriculum for all undergraduate mechanics students.  The first freshman classmates of UGS College are scheduled to complete the first year of their PLM curriculum this month using NX™ software, and some of these students have already completed the NX Certification Exam required for graduation.

“UGS is strongly committed to the China market, and has solidified this commitment by building up its workforce in the country to around 300 employees in Greater China, and over 100 R&D staff,” said Chuck Yuan, vice president of China Operations for UGS.  “This set of grants reinforces the UGS commitment to this market by enabling us to enhance engineering programs and thus help schools produce top-notch students that can contribute to product innovation across industries, regardless of the country in which they choose to live or the company for which they choose to work.  In fact, we are accelerating our plan for localized NX certifications to meet growing customer demands for knowledge driven PLM software.”

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.  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 and Transforming the process of innovation are registered trademarks or 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 academic 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.