23 February 2006

Tokyo Electron Limited (TEL), a Leading Supplier of Semiconductor Production Equipment, Expands Use of UGS’ Solid Edge for its 3D Design Platform

FOR RELEASE Thursday, February 23, 2006

TOKYO and PLANO, Texas– UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced that Tokyo Electron Limited (TEL),theleadingsupplierof semiconductor production equipment (SPE)andflat panel display (FPD) equipment, has expanded its use ofSolid Edge™ software -- UGS’ industry-leading, value-based 3D computer-aided design (CAD) system for the mainstream PLM market -- for its 3D design platform.

TEL initially implemented Solid Edge at its development site in Japan in 2001 before expanding to global implementation.  The current agreement brings the total number of Solid Edge licenses to more than 400 seats globally at TEL group companies’SPEdevelopment sites in Japan and the U.S.

“The semiconductor industry is evolving at a very rapid pace,” said Hideaki Amano, senior engineer, Information Systems Dept. Tokyo Electron Ltd.  “In order to sustain a leading position, we need to develop innovative products to respond to the pressure of our customers’ complex and challenging needs in a timely manner.  We have already obtained significant results of design quality improvements by using Solid Edge.  Design review with Solid Edge’s 3D model and associative CAE technology significantly contribute to the improvement of our product quality and credibility.”

Solid Edge’s ease of use and training helped TEL evolve from 2D to 3D, providing TEL substantial benefits from 3D digital product development. UGS’ collaborative support contributed to the smooth global deployment for TEL’s innovative product development process. Solid Edge’s ability to provide seamless interoperability with TEL’s standard CAE system, provided by one of the Solid EdgeVoyagerpartners, enabled TEL to detect design problems, errors and part interferences in the early stages of development, resulting in significant cost savings and reduction in development time.  In addition, Solid Edge’s recent enhancement of large assembly capability accelerates TEL’s development process of SPE, which typically consists of several tens of thousands of parts. 

“We are impressed with UGS’ investment in Solid Edge enhancements. UGS never fails to address our requests and expectations.  We are now looking forward to wire harness solutions in Solid Edge V18,” continued Amano.

“TEL’ssuccessful deploymentis a testament to Solid Edge’s superior capabilities, and reinforces UGS’ presence in the semiconductor market,”said Haruyoshi Iida, senior vice president, Japan Operations of UGS. “The continuous increase of Solid Edge licenses underscores the confidence that TEL has in UGS to deliver productive solutions.  We are honored to work with agloballeading company likeTELand we look forward to sharing even stronger successin the evolving semiconductor industry.

TEL standardized on Solid Edge in 2001 following a comprehensive evaluation of several major mid-range 3D CAD systems.  TEL cited Solid Edge’s superior 2D drafting capability and UGS’ clear product vision and renowned technical services as the primary factors in the decision.  TEL decided to move to Solid Edge from its existing 2D and conventional 3D CAD system to improve design quality, utilize CAE technology, reduce physical prototypes, improve development lead time and cost.  Solid Edge was initially implemented in development sites in Japan prior to global implementation.

The Solution

Solid Edge (www.solidedge.com) from UGS is powerful 3D CAD software that allows manufacturing companies to Design with Insight and achieve competitive advantage through cost reduction, while increasing top line revenues.  The exclusive Solid Edge Insight technology embeds design management capabilities directly within CAD, providing insight into design intent to the entire organization and enhancing collaboration.  Insight, complemented by Solid Edge’s superior core modeling and process workflows, greatly eases the design of increasingly complex products required to meet continually changing market demands.  The extensive Solid Edge user community is comprised of designers at thousands of companies worldwide, including Alcoa, NEC Engineering, and Volvo.  The Solid Edge Voyager Program includes 200 integrated engineering software applications and computer hardware solutions.

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, Solid Edge 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 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.