28 January 2004

Tecnomatix and UGS PLM Solutions Extend Strategic Alliance For Digital Manufacturing Process

HERZLIA, Israel and PLANO, Texas -- Tecnomatix Technologies Ltd (NASDAQ: TCNO) a nd UGS PLM Solutions, the product lifecycle management (PLM) subsidiary of EDS, today announced significantly enhanced interoperability between eM-Plant, the pr oduction and logistics visualization tool offered by Tecnomatix and Factory CAD, the 3D factory layout software solution from UGS PLM Solutions. The interoperability between eM-Plant and Factory CAD merges the best-in-class l ogistics analysis with 3D factory layout to provide manufacturers a single solut ion for designing factories and maximizing their productivity. It allows compani es to visualize a 3D layout of their factories at the same time that they can op timize material flow through “what-if” simulation analysis. “The strategic alliance between Tecnomatix and UGS PLM Solutions continues to deliver solutions that are transforming the landscape of the Digital Manufact uring marketplace,” said Robert Nierman, executive vice president, UGS PLM Solutions Business Strategy and Marketing. “This latest announcement unveil s the integration of best of class products delivering the benefits of a single comprehensive solution. Customers are the clear beneficiaries of this strategic relationship and are being rewarded with a level of interoperability between so lutions previously unmatched in the industry. This will translate into tangible costs savings and dramatic reductions in the planning process.” “This is just the latest outcome of the close collaboration between UGS PLM Solutions and Tecnomatix,” said Harel Beit-On, chairman and chief executiv e officer of Tecnomatix. “Factory CAD customers can now run extensive simul ation and analysis on their factory models, while Tecnomatix eM-Plant users will be able to create even more detailed plant layouts. Working together, UGS PLM S olutions and Tecnomatix are helping manufacturers reduce planning time and incre ase quality.” The integrated solution is based on SDX, the standard for data exchange between 3D fa ctory design and simulation. The collaborative approach allows manufacturers to generate a simulation model from 3D layout data automatically, then visualise, e valuate and optimize the production system. This new collaboration will enable c ompanies to reduce factory planning time and associated re-design costs by verif ying system layout, feasibility and performance throughout the entire design pro cess. “The integration of Factory CAD and eM-Plant allows simultaneous layout and performance analysis, enhancing the collaboration within the manufacturing orga nization,” said Chuck Grindstaff, executive vice president, UGS PLM Solutio ns Products. “By bringing these important functions together with our techn ology, customers will be able to dramatically reduce the iterations that are a c ommon part of providing an optimized factory layout. In today’s environment , where success means pressure for a large variety of on-time new product introd uctions, coordinating the factory design, internal organization and supply chain is a must.” About UGS PLM Solutions UGS PLM Solutions, a leader in product data management, collaboration and produc t design software and services with 41,000 clients and more than 2.6 million sea ts of technology operating in the market, is the product lifecycle management (P LM) subsidiary of EDS. The company works collaboratively with its clients to cr eate solutions enabling them to transform their process of innovation and thus b egin to capture the promise of PLM. The integration of the former operations of companies including Structural Dynamics Research Corporation (SDRC), Engineerin g Animation Inc. (EAI) and UGS, UGS PLM Solutions has created some of the leadin g design, collaboration and product data management technologies that ultimately formed the foundation of the PLM industry. Today, the company is a family of o ne, building on three decades of leadership in continuing to be a pioneer in PLM. For more infor mation on UGS PLM Solutions products and services, visit www.ugsplm.com or www. eds.com. About Tecnomatix TechnologiesM Tecnomatix Technologies Ltd. is the driving force in Manufacturing Process Manag ement (MPM). Today’s leading global manufacturers are adopting MPM solution s to expand revenue potential and reduce costs by accelerating product introduct ions, shortening time to volume, and optimizing production execution. eMPower en ables our customers to succeed with its collaborative, open platform and applica tions for defining, simulating, managing, and executing manufacturing processes across the extended enterprise. For more information on eMPower products and sol utions for MPM, please visit www.tecnomatix.com. This press release includes forward-looking statements, within the meaning of th e Private Securities Litigation Reform Act of 1995, which are subject to risks a nd uncertainties that could cause actual results to differ materially from those anticipated. Such statements may relate to the Company’s plans, objectives and expected financial and operating results. The risks and uncertainties that may affect forward-looking statements include, but are not limited to: currency fluctuations, global economic and political conditions, market demand for Tecnom atix products and services, long sales cycles, new product developments, assimil ating future acquisitions, maintaining relationships with customers and partners , and increased competition. For more details about the risks and uncertainties of the business, refer to the Company’s filings with the Securities and Exc hange Commission. Tecnomatix undertakes no obligation to publicly update or revi se any forward-looking statements, whether as a result of new information, future events or otherwise. The statements in this news release that are not historical statements, includin g statements regarding the amount of new contract values, are forward-looking st atements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond EDS’ cont rol, which could cause actual results to differ materially from such statements. For information concerning these risks and uncertainties, see EDS’ most recent Form 10-Q. EDS disclaims any intention or obligation to update or revise any for ward-looking statements, whether as a result of new information, future events o r otherwise.