12 May 2005

Comau SpA Signs €7.5 Million (US$9.7 Million) Three Year Global Agreement to Adopt UGS Tecnomatix Solutions for Digital Manufacturing

FOR RELEASE Thursday, May 12, 2005

PLANO, TexasUGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced Comau SpA, the world’s leading manufacturer of automotive production systems, signed a €7.5 million (US$9.7 million) three year, global agreement that extends Comau’s use of Tecnomatix® software, UGS’ digital manufacturing solutions, through 2007.

The agreement includes the maintenance, upgrading and expansion of the installed Tecnomatix digital manufacturing software portfolio which includes assembly planning, process simulation, product quality and human performance solutions as well as a significant expansion of Comau’s use of other digital manufacturing solutions from UGS.

Comau uses UGS’ Tecnomatix digital manufacturing solutions to help improve its ability to communicate with its OEM customers requiring the same solutions and to speed up the planning process and the systems engineering activities. In this way they streamline the relationships with customers by enabling the quick, easy exchange of manufacturing information, and reducing overall processing cost and spending.

“UGS’ Tecnomatix solutions continue to provide Comau a positive return on investments,” said Massimo Mattucci, Senior Corporate VP of Comau. “We are able to pass the benefits we reach through the integration of UGS solutions to our customers, contributing to the reduction of overall operating costs while significantly cutting processing times.”

“The extension of this agreement by Comau, an industry leader, is a clear indication of the impact that digital manufacturing can have on a company’s bottom line,” said Tony Affuso, chairman, CEO and president of UGS.  “Automotive manufacturers and suppliers like Comau are major adapters of digital manufacturing strategies; such customers can now look forward to the additional support and resources that UGS-Tecnomatix combination brings to the table.”

Comau plans to increase the number of process planning licenses that will be used to support key customer relationships, especially in the Body-in-White processes, initially including the estimate and pre-planning stages. There is also the possibility of expanding the applications to the entire shop floor, depending on the evolution of the process information interoperability, based upon Comau’s proprietary/open standards.

Comau, a long-time UGS-Tecnomatix user, originally deployed Tecnomatix software for the simulation of welding processes 16 years ago and later expanded the application to other manufacturing areas. With hundreds of Tecnomatix process planning and validation licenses in place, Comau is one of the largest users of UGS-Tecnomatix solutions.

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 Michelin – 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. For more information visit: www.ugs.com/tecnomatix.

About Comau

Comau is a global supplier of industrial automation systems for the automotive manufacturing sector and a global provider of full maintenance services. Over the years, by acquiring and integrating other companies, Comau broadened its presence all over the world, becoming the ideal partner for the automotive industry in developing product and process projects.  The continuous improvement of products, processes and services, through the application of the most advanced innovative technological solutions, allows Comau to contribute to its customers’ competitive advantage. For more information on Comau products and services, visit www.comau.com

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: 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 success 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 developments in the PLM industry 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.