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24 February 2005

UGS Signs New Cooperation Agreement with Mentor Graphics to Streamline “Mechatronics” – the Electro-Mechanical Product Development Process

FOR RELEASE Thursday, February 24, 2005

PLANO, Texas– UGS, a leading global provider of product lifecycle management (PLM) software and services, today announced the signing of a joint cooperation agreement with Mentor Graphics’ Integrated Electrical Systems Division (IESD) to deliver tight interoperability between the two companies’ software solutions. The agreement will result in a joint solution designed to significantly enhance the development and lifecycle management process for manufactured products employing electro-mechanical or “mechatronic” subsystems – a broad and growing segment of the market that includes household appliances, cell phones, personal computers, automobiles, aircraft, industrial machinery, medical equipment and satellites.

The agreement announced today builds on an already strong existing relationship between UGS and Mentor Graphics – a Foundation Partner within the global UGS Partner Program.

The mechatronics product lifecycle challenge

Mechatronics is an increasingly important and complex part of a product’s lifecycle. The mechatronics process includes the synergistic design and lifecycle management of integrated mechanical and electronic components along with the embedded software that controls these systems. 

The computer-aided design (CAD) software used by the engineers developing the mechanical aspects of these systems is typically different from the design software used by those working on the electronic side. Users of these MCAD and ECAD software solutions have difficulty sharing design data as well as managing the close relationships between their highly interdependent designs. Furthermore, most product data management applications are unable to maintain a relationship between a mechatronic system’s physical design and its embedded control software. As a result, product development costs increase and time to market is delayed.

“The effective and efficient development and management of complex electro-mechanical products over their entire lifecycles represents an increasing challenge for all manufacturers and their suppliers,” said Martin O’Brien, general manager of Mentor Graphics Integrated Electrical Systems Division. “Mentor and UGS recognize that providing integrated applications within our customers’ electro-mechanical design environments will enable the viewing and managing of a complete bill-of-material – both mechanical and electrical – and create much better interaction between the two design domains. This will allow early exploration of system architectures thereby significantly reducing design errors and development cost.”

A joint solution

Both UGS and Mentor Graphics IESD have been investing resources to develop tight integration between their software applications. Teamcenter® (UGS’ product knowledge management and collaboration) and NX™ (UGS’ digital product development) software solutions will offer bi-directional interoperability with Mentor Graphics’ Capital® Harness Systems™ (CHS) product suite, a comprehensive end-to-end software toolset for the design, analysis, engineering and production of complicated electrical interconnect systems.The joint solution will leverage the skills, data, knowledge and experience of a customer’s extended enterprise, enabling companies to work collaboratively across every stage of the electro-mechanical product lifecycle.

The integration of UGS’ product development and information management applications with Mentor Graphic’s CHS electrical design-build software flow will serve to remove many of the technological and infrastructure barriers that have traditionally separated the mechanical and electrical design disciplines and hindered the mechatronics process. This should create value for customers as it addresses the requirement for synergy and collaboration between these highly interdependent disciplines.

Mechatronics – key UGS growth initiative

The signing of this agreement represents a milestone in cooperation between leading vendors from the electrical design, mechanical design and PLM domains. UGS and Mentor Graphics IESD have been working closely together to understand customers’ mechatronics needs and to bring enhanced value to this process.

“UGS’ focus on mechatronics is a key growth initiative for the company and our agreement with Mentor Graphics IESD is an important step in demonstrating our commitment to this initiative,” said Don Vossler, UGS Fellow and general manager of the UGS Mechatronics Initiative. “The joint solution resulting from this agreement will be a key enabler of electro-mechanical co-design supported within a company’s PLM backbone and will therefore affect the entire mechatronics process, providing comprehensive design and management of the customer’s complete product.”

 UGS and Mentor Graphics IESD plan to deliver the first stage of their integrated solution in the second half of 2005.

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 trademark of UGS Corp. or its subsidiaries in the United States and in other countries.  Mentor Graphics, Capital and Harness Systems are trademarks or registered trademarks of Mentor Graphics Corporation.  All other trademarks, registered trademarks or service marks belong to their respective holders.

 

Forward Looking Statement

The statements in this 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.

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Jim Phelan
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jim.phelan@siemens.com