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20 December 2006

Rocketplane Kistler’s K-1 Aerospace Vehicle Takes-off with UGS PLM Technology

FOR RELEASE December 20, 2006

PLANO, Texas – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced Rocketplane Kistler Inc., industry-leading makers and future operators of the next-generation orbital and suborbital space transportation vehicles, selected NX® software, UGS’ digital product development solution, to design, build and test its Kistler K-1 aerospace vehicle.

The K-1, a fully reusable, two stage orbital launch vehicle, is a low-cost and reliable vehicle capable of delivering a variety of payloads to a wide range of altitudes and inclinations in Low Earth Orbit (LEO). Depending on satellite requirements, the K-1 offers two sizes of payload modules; a Standard Payload Module (SPM) and an Extended Payload Module (EPM). Interchangeable payload modules and the International Space Station (ISS) cargo module enable customer and market flexibility.

“With the award of a NASA COTS (Commercial Orbital Transportation Services) program to Rocketplane Kistler, we need a solution that provides a strong, dynamic design foundation,” said Joe Cuzzupoli, RPK’s COTS program manager.  “NX’s high-end design capability and strong presence in the Aerospace and Defense market combined with UGS’ broad PLM solution set made UGS the right choice.”

“Space transportation is an exciting new market and we are thrilled that innovators like Rocketplane Kistler see the benefits that UGS’ PLM technology can provide,” said Dave Shook, senior vice president and managing director, Americas, UGS.  “NX delivers a best-in-class solution in a commercial, off-the-shelf package which provides a strong foundation with the ability to support future growth.”

About Rocketplane Kistler
Rocketplane Kistler (RpK) brings together two industry-leading makers and future operators of the next-generation orbital and suborbital space transportation vehicles.  RpK was formed when Kistler Aerospace Corporation and Rocketplane Limited, Inc. were brought under common ownership.  RpK markets the services of the fully reusable, two stage Kistler K-1 orbital launch vehicle and the fully reusable, suborbital Rocketplane XP Spaceplane, both of which will be first to fly in their respective markets.  For more information, please visit the website: www.rocketplanekistler.com.

About UGS
UGS is a leading global provider of product lifecycle management (PLM) software and services with nearly 4 million licensed seats and 46,000 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 NX 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.

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Salim Rahimi
+1 972 987 3206
salim.rahimi@siemens.com