01 June 2004

Renault To Extend UGS' Teamcenter Throughout its Electronics & Electric Systems Division and Supply Chain

FOR RELEASE Tuesday, June 1, 2004

PLANO, Texas and PARIS -- UGS, a leading global provider of product lifecycle management (PLM) software and services,today announcedthat global automaker Renault has selected Teamcenter as the product knowledge management and collaboration foundation for its "mechatronics" initiative -- the synergistic integration of mechanical, electrical, electronics and software technologies into electro-mechanical products.  Renault will implement Teamcenter to support the electronics and electric systems development throughout the company and its entire supply chain.

Market drivers such as globalization, increased competition, higher safety needs and faster serviceability have led to challenging new requirements for stylish, content-rich and price competitive products.  In the automotive industry, the latest product designs incorporate new intelligent mechatronics features such as infotainment, electronic stability control, collision avoidance, drive-by-wire and hybrid power systems as differentiators in the marketplace.  These features require added sensors, increased in-vehicle software and smart manufacturing processes to drive the next level of operational efficiency and performance.  The development and handling of these complex interlaced systems over the entire product lifecycle represents an increasing challenge for all manufacturers and their suppliers. 

Teamcenter’s world-leading product knowledge management and lifecycle collaboration capabilities are designed to handle the complexity associated with mechatronics.  Renault has designated Teamcenter as the foundation for GEDELEC, Renault’s PLM system for its Electronics & Electric Systems Division.  GEDELEC will enhance and extend Renault’s existing Teamcenter implementation by providing the integrated design, with electrical architecture and mechatronics sub-systems definition tied together with the overall system design.  GEDELEC will also enable the managing of the unique change process throughout the entire product lifecycle leveraging the skills, data, knowledge and experience of the extended enterprise, allowing it to work collaboratively with Renault across every stage of the electro-mechanical product lifecycle. 

"Teamcenter, as the collaborative foundation of Renault’s mechatronics initiative, will enable Renault to reinforce quality, increase reactivity and improve supplier collaboration throughout the Electronics & Electric Engineering Process," said Ivan Lacrouts, Electric Electronic Engineering Deputy Vice President.

"Renault’s decision followed a detailed benchmark between major competitive systems," said P. Ferrer, Renault GEDELEC project manager.  "Teamcenter offers excellent functionality to help us reach our goal of enhanced efficiency by standardizing mechatronics component change management processes with our suppliers."

The launch of GEDELEC represents the latest milestone in years of successful collaboration between Renault SAS and UGS.  The company has been using UGS’ technologies to manage the vehicle development process and associated design data for all car programs with its GDG application.  GDG’s extension to include global supplier collaboration is called "GDGWeb."

"Renault’s leadership in engineering excellence and their selection of UGS’ software and services is further validation of our aggressive R&D investment strategy," said Tony Affuso, chairman, CEO and president of UGS.  "By understanding and focusing on the needs and desires of our clients and their customers, we are able to maximize the value we create throughout the extended enterprise.  We are proud of our relationship with Renault and its global suppliers, and we look forward to continuing to work together well into the future on leading edge initiatives."

The Renault contract further solidifies UGS’ leadership position in the automotive industry. To date, more than 155,000 seats of UGS’ software are in use at the world’s top 25 automotive original equipment manufacturers (OEMs).

About Teamcenter
Teamcenter, from UGS, is a proven portfolio of configurable lifecycle domain and industry solutions, uniting product knowledge with process innovation to deliver business value throughout the product lifecycle.  Teamcenter leads the PLM industry with digital product development, engineering data management and enterprise process management solutions that deliver fast time-to-value.

About UGS
UGS is a leading global provider of product lifecycle management (PLM) software and services with more than 3 million licensed seats and 42,000 clients worldwide.  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:  Teamcenter is a registered trademark of UGS Corp. or its subsidiaries in theUnited Statesand 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 amount of new contract values, 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. For information concerning these risks and uncertainties, see UGS’ most recent Form 10-Q. 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.