07 September 2005

UGS Recognized as PLM Leader and Number One in cPDm Market Presence According to Leading Product Lifecycle Management (PLM) Industry Analyst Firm CIMdata

FOR RELEASE Wednesday, September 7, 2005

PLANO, Texas – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced that in the recently released Market Analysis Report, leading PLM industry analyst firm CIMdata, Inc. recognized UGS as a PLM leader and as the top vendor in the Collaborative Product Development Management (cPDm) market segment – the fastest growing segment of the PLM industry.

The Market Analysis Report provides in-depth data and analyses of the PLM market and builds on information released by CIMdata in March 2005.  Based on market estimates, the CIMdata report ranked UGS number one in terms of market presence among cPDm mindshare leaders in 2004.  The report also signals the health and growth of the UGS® Partner Program.

“UGS’ Teamcenter portfolio is the cornerstone of their PLM and cPDm strength.  The difference in a supplier’s direct revenues and their overall impact on the market (market presence) underscores the importance of having a strong partner program to expand the presence of a solid set of offerings, as UGS has established with its Teamcenter cPDm solution,” said Ed Miller, president of CIMdata.  “Suppliers that do not establish and maintain effective partner programs will not be market leaders going forward. PLM technology suppliers must align with partners, though not necessarily on an exclusive basis, to improve their ability to offer a more complete solution to their clients.”

According to CIMdata, cPDm is forecast to be the fastest-growing segment of the PLM market with a 15 percent compound annual growth rate (CAGR) to exceed $10.5 billon in 2009. CIMdata estimates that the PLM market as a whole will grow at a CAGR of 8 percent to approximately $25 billion by 2009.

“Market analysts once again recognize UGS’ leadership position in this critical area of PLM - cPDm,” said Dave Shirk, executive vice president of global marketing for UGS.  “CIMdata cites that our strong revenue along with the revenue from our partners is an indicator of the success of our open business strategy and ability to form strategic, beneficial partnerships with multiple major systems integrators and software vendors.  We remain committed to our customers’ success and to our partners’ success.”


UGS’ Strength in cPDm

UGS launched Teamcenter® 2005 software – the world’s first integrated software solution to close the gap between idea capture and comprehensive PLM - in June 2005.  Teamcenter 2005 powers new product ideas from concept to reality by integrating idea management and requirements planning into the complete digital lifecycle management, product development and manufacturing process.  Strong UGS relationships with Intel, HP and Microsoft complement the Teamcenter 2005 solutions targeted at the industry’s most critical business initiatives including new product development and introduction, global product development and regulatory compliance

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 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 our business, results of operations, expected financial performance 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, loss or downsizing of customers, competition, failure to innovate, international operations and exchange rate fluctuations, terrorist activities, acquisitions, changes in pricing models, intellectual property and losses of key employees. 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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