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31 May 2005

IHI Marine United Selects UGS NX and Teamcenter Solutions for Naval Ship Development

FOR RELEASE Tuesday, May 31, 2005

PLANO, Texas and TOKYO - UGS, a leading global provider of product lifecycle management (PLM) software and services, today announced that IHI Marine United (IHIMU), Japan’s leading shipbuilding company, selected UGS’ NX™ and Teamcenter® software and services as the next-generation solution to accelerate digital development of a new helicopter carrying navy destroyer (DDH).

IHIMU recently received an order for the DDH from the Japan Defense Agency. The new DDH will be one of the largest naval ships in Japan, with a displacement of 13,500 tons. The first ship is expected to be completed in March 2009. NX, UGS’ digital product development software and Teamcenter, UGS’ product knowledge management and collaboration software, will be deployed throughout the DDH program as the standard system for development, offering superior digital product development and enterprise knowledge management solutions.

IHIMU began the selection process for its next-generation PLM system approximately three years ago and conducted a comprehensive evaluation of various systems.

“UGS’ superior large-scale assembly capability as well as the linkage of digital product development and product knowledge management collaboration software were key factors in our decision to select UGS’ PLM technology,” said IHIMU. “In addition, the fact that many of the world’s leading shipbuilders are already using UGS technology proved its credibility and reinforced our decision to select UGS as IHIMU’s next-generation PLM system.

“The DDH that IHIMU received an order for this time will be the largest operational naval ship in Japan with a staff of more than 350. Its equipment density will be many times more than that of commercial ships,” added IHIMU. “We needed an innovative development process to complete this DDH development within the same development time as before. NX will be used to create the highly complex designs and assemblies for the naval ship and Teamcenter will provide the managed development environment to enable collaboration and knowledge reuse of the large-scale CAD data, which we expect will dramatically improve the efficiency in naval ship development, and virtual construction will allow us to perform assembly validation to improve design quality. We expect UGS’ solutions to powerfully support the development process of the DDH, as they are highly regarded in the shipbuilding industry.”

“We are very pleased that IHI Marine United, which has the trust of the Japan Defense Agency, has chosen UGS for their next-generation PLM system,” said Haruyoshi Iida, senior vice president, Japan Operations of UGS. “UGS has been selected as the preferred PLM technology provider by numerous leading shipbuilding companies worldwide, and this selection by IHIMU is a shipbuilding industry milestone for UGS Japan.”

Shipbuilding has been identified by UGS as one of the industries where PLM adoption will be accelerated in the near-term. Teamcenter, the de facto standard for PLM, is in use today with the world’s leading shipbuilders, including Blohm + Voss, Nordseewerke, Lurs sen, Feadship and Howaldtswerke-Deutsche Werft AG. The selection of UGS’ solutions by IHIMU further reinforces UGS’ world leadership in this industry.

About UGS

UGS is a leading global provider of product lifecycle management (PLM) software and services with nearly 4 million licensed seats and 42,000 clients worldwide. Headquartered in Plano, Texas, the company promotes openness and standardization and works collaboratively with its clients in creating enterprise solutions enabling them to transform their process of innovation and thus begin to capture the value of PLM.

Note to editors: UGS, Teamcenter and NX 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 call/news release that are not historical statements are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond UGS’ control, which could cause actual results to differ materially from such statements. The company has included a discussion of pertinent risk factors in the final offering memorandum relating to our 10% Senior Subordinated Notes, a copy of which discussion of risk factors is available from the company. The company disclaims any intention or obligation to update or revise any forward- looking statements, whether as a result of new information, future events or otherwise.