08 February 2005

UGS and Capgemini U.S. LLC Announce Strategic Alliance; Companies to Help Customers with Enterprise-Wide Deployment of Product Lifecycle Management (PLM) Solutions to Improve Efficiency and Top Line Growth

FOR RELEASE Tuesday, February 8, 2005

PLANO, Texas and REDWOOD, Calif. – UGS, a leading global provider of product lifecycle management (PLM) software and services, and Capgemini U.S. LLC (Capgemini), one of the world’s foremost providers of consulting, technology and outsourcing services, today announced an alliance to jointly offer enterprise level industry-leading PLM solutions designed to transform the process of innovation and thus improve efficiency and top line growth. 

UGS also today announced its fourth quarter 2004 and full year 2004 earnings. The Capgemini alliance marks one of the first major agreements with systems integrators announced by UGS since the company launched independent operations in May 2004.

Capgemini and UGS will work collaboratively on joint marketing, business development, sales engagements, solution delivery and operations to help maximize the impact of PLM based solutions.  The Capgemini-UGS alliance will leverage UGS’ PLM solutions and Capgemini’s Collaborative Business Experience to deliver customer specific enterprise wide integration to help customers enhance collaboration and obtain quick return on investment.

“This announcement comes at a critical juncture in the maturity of the PLM marketplace as the industry recognizes the need for broader integrated enterprise based PLM solutions,” said Jim Milton, executive vice president, Global Sales and Services, UGS.  “This best in class approach will offer thought leadership that is unparalleled in the industry and provide customers a competitive edge by taking advantage of UGS’ open standards and true enterprise capability.  The multi-year alliance expects to redefine the global PLM marketplace as it rapidly grows during the coming years.”

“As the value proposition for PLM becomes apparent, it is imperative that companies begin investing in technology that will bring their new products to market faster,” said Kevin Poole, Capgemini’s supply chain consulting leader for North America.  “Combining UGS’ industry leading PLM solutions with Capgemini’s industry experience and enterprise integration skills creates a best-of-breed PLM solution that will ultimately improve top-line growth.”

The cornerstone of Capgemini’s Collaborative Business Experience and go-to-market model is the company’s Accelerated Solution Environment (ASE).  Through this capability, diverse client teams are empowered to rapidly gain consensus and develop a shared understanding of complex business problems often seen across the enterprise.

“Our ASE is what differentiates us in this venture,” said Martin Conner, Capgemini’s PLM Practice Leader.  “Capgemini has successfully delivered ASE sessions across many industries and solution areas.  Collaborating with UGS, this capability will be strengthened in the PLM space and enable key stakeholders to see the value of PLM at the enterprise level.”

In addition to focusing on the traditional manufacturing sector, the alliance will leverage the industry presence and strengths of Capgemini in the Energy, Life Sciences and Consumer segments of the market, which are seen as growth industries for PLM.  These industries can benefit from the lessons learned in the manufacturing sector where collaboration, knowledge networks and innovation have been key areas of focus over the past decade resulting in reduced time to market, cost reductions and quality improvements.

The global market for PLM software and services is expected to grow by a compound annual growth rate of around 10 percent through 2007 to more than US$12.4 billion, according to Daratech. Through 2007, Daratech expects the product data management and collaboration segment of the PLM market, which UGS leads on the strength of its Teamcenter portfolio, to grow around 12 percent, compounded annually.

About Capgemini

Capgemini, one of the world’s foremost providers of Consulting, Technology and Outsourcing services, has a unique way of working with its clients, which it calls the Collaborative Business Experience.  Through commitment to mutual success and the achievement of tangible value, the company helps businesses and governments implement growth and transformation strategies, leverage technology, and thrive through the power of collaboration.  Known as Cap Gemini Ernst & Young until April 15, 2004, Capgemini employs approximately 60,000 people worldwide and reported 2003 global revenues of 5.754 billion euros.  More information about individual service lines, offices and research is available atwww.us.capgemini.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, Teamcenter, Solid Edge, NX and Parasolid 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 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.