22 February 2007

Sichuan Changhong Electric Company Establishes Enterprise Data Management with UGS’ Solution

FOR RELEASE Thursday, February 22, 2007


PLANO, Texas and BEIJING – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced that Sichuan Changhong Electric Co., Ltd. (Changhong), a leader in China’s electronics industry, has selected UGS’ Teamcenter™ product data management (PDM) solution for its PLM backbone.


Changhong is ranked second in the home appliance brands list of the 500 most valuable brands in China.  The company is equipped with a world-class manufacturing facility and leading R&D capability and commits itself to product innovation in the electronics industry.  In line with Changhong’s goal to actively participate in the development of a global digital industry, the company has selected UGS as its partner to advance this vision.


UGS Teamcenter was favored over its competitor’s software because of its seamless integration with Changhong’s existing enterprise resource planning (ERP) implementation and bill of material (BOM) data management.  This new engagement signifies the beginning of a long-term relationship between the two companies, which will allow Changhong to fully realize the value of knowledge management and engage their partners in a globally collaborative environment.


“At Changhong, we strive to be a global leading provider of home appliances and information technology products,” said Ren Zonggui, director of operations, Changhong.  “By leveraging on UGS’ knowledge of best-in-class practices in PLM, we hope to facilitate knowledge management across the enterprise, enhance collaboration and coordination throughout the organization and business systems in the product lifecycle and invigorate our global manufacturing capabilities.  I believe we can accelerate our time-to-market cycle and deliver world-class innovative products to our customers.”


PLM is an increasingly important enterprise business strategy through which organizations digitally manage a product’s complete lifecycle, all the way from conception to its retirement -- and gain higher business value from that product as a result. 


UGS’ China operation is celebrating 20th anniversary this year.  UGS entered the China market in 1987, and established the first representative office in Beijing in 1990 and set up an R&D center in Shanghai in 2004.  Since the market entry in 1987, UGS has helped Chinese enterprise to transform from “made in China” to “made with China.”


“UGS is committed to helping Chinese enterprises become more competitive not only in the domestic market but also in the global market. Our professional advantages and industrial experiences will help users realize product innovation and help enterprises develop competitive advantages,” said Chuck Yuan, vice president and managing director for Greater China Operations, UGS.  “The fact that a leading Chinese enterprise like Changhong has selected UGS is a testament to our strength in the high tech electronics industry in China.”


UGS China has been honored with the Best 10 Product Provider of 2006 award by Manufacture Information Engineering of China magazine (MIE of China).  The winners were chosen based on the following criteria: innovation, commitment, impact and driving forces in the market.  In addition, UGS China has also been awarded with Best PLM vendor by ERPWorld.net, Top 10 People in the News in 2006 for Chuck Yuan by ERPWorld.net and Editor’s Choice Award for Teamcenter Express by E-Manufacturing magazine.


UGS in the High Tech Electronics Industry

UGS recently announced that IT market research and advisory firm IDC recognized UGS as the leading PLM provider for the Aerospace and Defense, Automotive and High Tech industries.  IDC includes this ranking information in a recent report entitled, “Americas Product Life-Cycle Management Software 2005 Vendor Shares: Top 10 Vendors by Vertical Market,” (IDC Doc#203741 Sept. 2006).  The report evaluates market share positioning for PLM providers using a vertical segmentation of 2005 revenue.  According to the study, UGS maintains the largest share of revenue in three of four discrete manufacturing industries -- Aerospace and Defense, Automotive and High Tech.


UGS software is widely used at leading High Tech and Electronics companies globally, including the top semiconductor and mobile phone manufacturers, four of the top five consumer electronics OEMs, three of the top five semiconductor equipment manufacturers, and eight of the top 10 contract manufacturers.  UGS® solutions enable companies to develop innovative products that capture the imagination of consumers.


About UGS
UGS is a leading global provider of product lifecycle management (PLM) software and services with 4.3 million licensed seats and 47,000 customers worldwide.  Headquartered in Plano, Texas, UGS’ vision is to enable a world where organizations and their partners collaborate through global innovation networks to deliver world-class products and services while leveraging UGS’ open enterprise solutions, fulfilling the mission of enabling them to transform their process of innovation. 


Note:  UGS, Transforming the process of innovation and Teamcenter are trademarks or registered trademarks 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 news release that are not historical statements, including statements regarding the expected benefits of the customer relationship, the successfulness of the implementation and other statements identified by forward looking terms such as "may," "will," "expect," "plan," "anticipate" or "project," are forward-looking statements. These statements are subject to numerous risks and uncertainties which could cause actual results to differ materially from such statements, including, among others, risks relating to loss or downsizing of customers, competition, international operations and exchange rate fluctuations, changes in pricing models, partnering strategy, and intellectual property. UGS has included a discussion of these and other pertinent risk factors in its quarterly report on Form 10-Q for the period ended June 30, 2006 filed with the SEC.  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.