05 June 2006

UGS’ Velocity Series Highlights Major Milestones for the Company’s Industry Leading PLM Mid-Market Initiative

FOR RELEASE Monday, June 5, 2006.

PLANO, Texas – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced a series of major milestones further leveraging the company’s success in becoming the first to bring enterprise-level PLM technology to companies in the mid-market.

The company last year launched the UGS Velocity Series™ portfolio, the first-ever to deliver enterprise-level PLM technology to the mid-market in an easy-to-deploy portfolio. The UGS strategy delivers leading PLM technology to transform the process of innovation – without the need for extensive IT support – for low total cost of ownership. At the same time, the company launched an effort to increase its channel capacity by 50 percent within one year.

Today’s announcements highlight several updates to the popular portfolio of PLM solutions for the mid-market:

“According to our research, mid-sized enterprises are eager to take advantage of PLM solutions that can be adopted effectively with their limited resources,” said Jim Brown, VP Product Innovation and Engineering Research for AberdeenGroup. “Leading manufacturers, including smaller companies, are achieving significant revenue gains and cost reduction from implementing PLM solutions such as UGS’ Velocity Series.”

The addition of NX CAM Express to the UGS Velocity Series portfolio is the latest step in UGS’ strategy to provide a comprehensive family of modular, yet integrated solutions that focus on helping mid-sized customers transition to a complete PLM solution, while minimizing overhead and maintaining a low cost of ownership.

“The portfolio has gained momentum since its launch. Solid Edge has seen three straight years of double-digit growth, Teamcenter® Express has completed shipment in all languages, and Femap has exceeded our expectations. These are strong indicators that our mid-market strategy is being well received by the market,” said Bruce Boes, vice president of marketing, UGS Velocity Series. “By adding NX CAM Express to the portfolio, UGS has an opportunity to further extend its mid-market leadership with a best-in-class, rapidly deployable CAM solution.”

Global Channel Partner Program Expands Capacity for Velocity Series Sales

UGS’ Global Channel Partner Program has been a key element of the mid-market strategy announced last September, and a driving force behind the momentum of the UGS Velocity Series portfolio.

“The UGS Velocity Series has been well received by the mid-market since its introduction last year, and as a result, we have added 30 percent capacity to our distribution channel,” said Kerry Grimes, vice president, Mid-Market and Global Channel Sales, UGS. “Based on the success of our global recruiting and training events, UGS continues to exceed our goals for increased channel capacity.”

For more information, visit www.ugs.com/velocity.

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 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.

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