14 March 2006

UGS Announces Teamcenter Environmental Compliance Solution, Enabling Best Practice in Design for Regulatory Compliance

FOR RELEASE Tuesday, March 14, 2006

PLANO, Texas– UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced a new Teamcenter® software solution that enables manufacturers subject to environmental regulations to significantly increase product compliance and reduce failure rates by building compliance considerations early into the design phase of their products. The new environmental compliance solution is part of UGS’® set of compliance management offerings found in Teamcenter, the world’s most widely used PLM software portfolio.

New analyst report quantifies value of design-for-compliance

Across all industries, compliance with regulatory authorities and government guidelines has become a key factor in product success. In a new report, titled Product Compliance: Protecting the Value of Innovation, industry research firm AberdeenGrouptakes a look at best-in-class manufacturers’ approaches to compliance. According to the report,“leading companies are adopting organizational approaches that encourage compliance, measure compliance performance more frequently and use appropriate enabling technologies to support designers in making the right compliance choices at the point of design.”

The report also points out that these same companies are “moving towards identifying and meeting compliance requirements early in the product design process” and achieving significant results.

• 27 percent product recall reduction

• 15 percent reduction in design failure rates

• 31 percent improvement in the number of products in compliance

“The growing need for companies to comply with a wide variety of regulatory requirements creates new and difficult challenges that can distract an organization from adding value to its products, yet achieving compliance is essential to protecting the value of its innovations,” said Jim Brown, vice president Global Product Innovation and Engineering, AberdeenGroup. “Our research clearly indicates that companies who can proactively build regulatory compliance into their design process by employing compliance-enabling PLM technologies have a real business edge on their competition.”

New Teamcenter offering enhances robust regulatory compliance solution

In order to further help its customers realize these significant business benefits, UGS is adding the new environmental compliance offering to its Teamcenter portfolio. New capabilities include end-to-end collection, management and reporting of environmental compliance and material content information enabling product makers to specifically comply with the End-of-Life Vehicle (ELV), Restriction on the Use of Hazardous Substance (RoHS) and Waste from Electrical and Electronic Equipment (WEEE) directives.

“Regulatory compliance is becoming one of the biggest challenges to our business model,” said Randall Ledford, CTO, Emerson Electric Co. “Now even our legal staff is involved in product development like never before because we have to make certain we are designing compliance into the early stages of product development.”

Teamcenter’s environmental compliance solution enables product developers to easily capture detailed material and substance data that pertains to each of the components provided by the product’s various suppliers. This data is captured in the form of product requirements. Once the material and substance data is captured by Teamcenter, product developers can relate this data to a hierarchical model that fully defines a part in terms of its underlying substances, material composition, technical materials, part composition and environmental part data.

The Teamcenter environmental compliance solution was developed through a partnership with Synapsis Technology, Inc., the provider of Product Lifecycle Intelligence™ products and services.  The solution is “Powered by EMARS™” software,  Synapsis’ industry proven system for environmental compliance management.  Synapsis provides supply chain and high-tech-electronics industry-specific knowledge and software add-ons that complement the capabilities of Teamcenter.

Teamcenter – a complete regulatory compliance solution

Through its ability to capture enterprise knowledge and enable process management, Teamcenter empowers users to support a wide variety of regulatory compliance requirements in their daily tasks including financial and product records management and archiving, and document and records retention management. Through its broad scope of compliance management capabilities, Teamcenter enables customers to facilitate design-for-compliance initiatives, provide product developers with rapid visibility to all compliant and non-compliant components, integrate compliance management capabilities into current business processes and further leverage their existing investment in Teamcenter technology.

“Companies have had to make the big transition to using a formal system to meet regulatory compliance initiatives,” said Steve Bashada, vice president of Teamcenter applications, UGS. “Previously, compliance data was on a server somewhere or on some desktop application, but today the stakes are so high that the accuracy of the data needs to be assured and organizations need to have a solid audit trail. As a result, companies are investing in formal systems like Teamcenter to establish an enterprise-class, secure environment to manage compliance processes and information.”

Aberdeen’s report, Product Compliance: Protecting the Value of Innovation, was sponsored by UGS and can be downloaded at no charge from the UGS web site at http://www.ugs.com/products/teamcenter/?comp

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 and Transforming the process of innovation are trademarks or registered trademark of UGS Corp. or its subsidiaries in the United States and in other countries.  EMARS, Powered by EMARS, and Product Lifecycle Intelligence are trademarks or registered trademarks of Synapsis Technology, Inc.  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 registration statement on Form S-4 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.

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Jim Phelan
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