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03 August 2004

UGS Receives Leading Marks in Product Lifecycle Management Industry's First Independent Study on Openness

FOR RELEASE Tuesday, August 3, 2004

PLANO, Texas– UGS, a leading global provider of product lifecycle management (PLM) software and services, today announced it received leading marks for its innovative open technology and business model from industry analyst firm Collaborative Product Development Associates, LLC (CPDA) in a report released today entitled Defining thePLM Open Landscape. The report shows UGS earned leading marks in all four of the study’s major categories with top honors award in two of the four.

The report also recognizes UGS as playing a key role in changing the attitudes and behavior of the leading PLM suppliers relative to open solutions. According to the report, UGS’ landmark interoperability agreement with one of its primary competitors in March 2002 is said to have “formally signaled a major change in the industry.”

Openness is a critical PLM evaluation criterion

“The degree of openness of a given PLM supplier’s technology and business model is clearly a critical evaluation criterion for any company considering a PLM solution today,” said Don Brown, president of CPDA. “It is no longer acceptable for suppliers to produce state-of-the-art technology and then deliver it in a proprietary format. Customers today are demanding PLM solutions that work in harmony with complementary technologies like ERP while seamlessly integrating with their overall IT infrastructure.”

In this regard, UGS “takes a lead in terms of both breadth of background and experience,” and its “history and positioning gives UGS the advantage of being the most practiced company with open systems, heterogeneous data and process integration across multiple industrial sectors,” according to the CPDA report. The report then goes on to state that “UGS did the right thing with an impressive proof point delivered in the market, building upon standards, with the PLM XML initiative for data exchange and process synchronization.”

UGSLeads PLM Open Landscape

The CPDA report on PLM openness, the first of its kind in the PLM industry, provides a common framework of critical criteria for evaluating integration and openness requirements for design and engineering. The report evaluated UGS’ PLM offerings, along with those of five other PLM suppliers, over 27 criteria in three major categories: Data, Process and Tools. In addition, the report established a fourth major category with 3 criteria to evaluate the open nature of each supplier’s Business Model. CPDA conducted the study in an effort to evaluate suppliers’ understanding of end user requirements, and for their ability to refine and phase an implementation scenario efficiently and reliably. UGS scored higher than all evaluated suppliers in two of the four openness categories and is rated as one of the leaders in all four categories.

“UGS views this study as a clear endorsement of its leadership in the increasingly critical and visible area of openness,” said Bruce Feldt, vice president of Open Tools for UGS. “UGS is proud to have been a pioneer in championing the importance of openness throughout the PLM industry and we will continue to serve as the leader in this important customer imperative. The CPDA study released today provides further evidence that UGS’ PLM Open business model and technology are not only rated higher than our competition, but also are consistent with what customers are demanding in order to enable value creation through PLM.”

UGScontinues leadership in openness

UGScontinues to leverage its growing PLM industry leadership in the area of openness. In its most recent example, the company announced earlier this month the addition of six new members to the JT Open initiative, building on the strong momentum established since its initial launch in November 2003. JT Open is an initiative driven by global leaders that view PLM as a competitive advantage and have adopted UGS’ “JT” data format as a standard.

In addition, UGS announced in June the acquisition of D-Cubed, a Cambridge, England-based supplier of embedded component software technology used by many of the world’s leading computer-aided design (CAD) application developers. D-Cubed is now part of UGS’ PLM Components suite of solutions which consist of component software products used by the application development community to promote open innovation and collaboration while enabling seamless interoperability among applications in the PLM market. More information is available at www.ugs.com/products/open/.

About UGS
UGSis a leading global provider of product lifecycle management (PLM) software and services with more than 3 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.

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