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20 July 2005

Leading Swedish Contract Manufacturer Signs 3-Year Extension for UGS Digital Manufacturing Solutions

FOR RELEASE Wednesday, July 20, 2005

PLANO, TX – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced that PartnerTech, a leading contract manufacturer in the telecom infrastructure, IT and medical equipment marketplaces, signed an agreement to extend its use of Tecnomatix, UGS’ digital manufacturing solutions through 2008. PartnerTech has been a Tecnomatix customer since 1998.

The agreement includes maintenance and services for the installment of UGS Tecnomatix’s electronics digital manufacturing software portfolio that includes assembly planning and production execution capabilities for quality management and traceability.

“UGS is giving us the complete digital manufacturing solution we need to be successful,” said Soren Wilhelmsson, general manager, design and engineering, PartnerTech. “Their Tecnomatix solution will help us shorten not only new product introduction time, but also give us total process visibility and great traceability.”

“We are pleased to be able to continue to offer PartnerTech the leading digital manufacturing solutions available in the market today,” said Jaron Lotan, senior vice president, manufacturing solutions group, UGS. “As one of the largest contract manufacturing firms in Sweden, PartnerTech recognizes the importance of implementing digital manufacturing across all of its operations.”

About Tecnomatix

Tecnomatix is the digital manufacturing brand of UGS, which acquired Tecnomatix Technologies Ltd. on April 1. Tecnomatix is the most widely-used digital manufacturing solution, enabling organizations to design, simulate and execute production processes. Digital manufacturing is a critical component of product lifecycle management, helping businesses increase profitability by improving the way products are built. More than 5,000 companies worldwide – including BMW, Lockheed-Martin and Anheuser-Busch – are using Tecnomatix to reduce operating costs, accelerate product introductions and shorten time to volume while maintaining high levels of product and process quality. Tecnomatix leverages the UGS Open Manufacturing Backbone, which facilitates integration with other UGS™ solutions, as well as third-party systems. With Tecnomatix, UGS brings together best-of-breed digital manufacturing solutions, deep process expertise and a proven knowledge management foundation spanning the entire product lifecycle.

About PartnerTech

PartnerTech develops and manufactures products under contract for leading companies, primarily in telecommunications, IT, the engineering sector and medical technology. The company (www.partnertech.com), which has approximately 1,300 employees, posted sales of more than SEK 1.7 billion in 2004 and is quoted on the O list of the Stockholm Stock Exchange.

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 and Tecnomatix are trademarks or registered trademark 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.