05 July 2006

UGS Adds SMART Engineering as New CAE Channel Partner

FOR RELEASE Wednesday, July 5, 2006

PLANO, Texas - UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, announced today a partnership with SMART Engineering GmbH to sell Femap® with NX Nastran software for finite element modeling. SMART Engineering was previously a partner of MSC.Software for the MSC. Nastran™ for Windows® solution.

In February, UGS terminated its OEM agreement with MSC.Software (see separate press release) that allowed MSC.Software to bundle Femap with MSC.Nastran and offer upgrades. To support its customer base that it has built over the last 10 years and to continue to provide leading finite element applications, SMART Engineering partnered with UGS.

“Our partnership with UGS gives us a better and more reliable partner for our ongoing busi-ness development,” said Rolf Bröske, managing director of SMART Engineering GmbH. “Femap is very valuable for our customers, giving them a seamless continuation for their analysis and simulation tasks. Many are already migrating to Femap.”

“We are pleased to welcome SMART Engineering into our channel program,” said Wolfram Schloter, manager of Germany Channel Programs, UGS. “They are a very competent, re-spected, and successful partner for digital analysis and simulation. We have already received positive customer feedback on this new partnership.”

SMART Engineering is now providing UGS’ free software upgrade for its current MSC.Nastran for Windows customers to Femap. This enables users to protect their existing investment and increase productivity through the latest enhancements. The offer includes immediate support but is subject to the purchase of a 12-month maintenance agreement, which would commence after the expiration or termination of any current maintenance agree-ments.

New Partner Part of Ongoing Channel Expansion

SMART Engineering joins other key new Channel Partners in helping UGS achieve its 50 percent channel expansion goal by year end.

“SMART Engineering is a great fit in our channel, both for their analysis expertise and their commitment to the German market,” said Kerry Grimes, vice president, Mid Market and Global Channel Sales, UGS. “They represent another key partner in channel expansion. They join many new partners in 2006 who validate our strong product portfolio, go-to-market business model and innovative channel program. Together we can better server the unique needs of the mid-market customer and their adoption of PLM.”

Femap is the finite element analysis component of the UGS Velocity Series™. For more information, visit www.ugs.com/femap. For more information about UGS’ channel program, visit www.ugs.com/partners.

About SMART Engineering

SMART Engineering is a customer driven supplier of FEM-solutions with more than 10 years experience for Nastran and Femap. The established Know-how is directly valuable for cus-tomers thru individual consulting services and fast support. Other businesses of SMART Engineering include CAE-services and application specific trainings. Customer base reaches from single person engineering firms to leading enterprises. www.fem.de

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.  For more information on UGS products and services, visit www.ugs.com.

Note:  UGS, Femap, NX and Transforming the process of innovation are trademarks or regis-tered trademarks of UGS Corp. or its subsidiaries in the United States and in other countries.  MSC.Nastran is a trademark of MSC.Software Corporation.  Nastran is a registered mark of NASA.  Windows is a registered mark of Microsoft Corporation or its subsidiaries in the US and 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 expected benefits of the channel relationship, adoption by customers, product accep-tance 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 developments in the PLM industry, com-petition, failure to innovate and intellectual property. UGS has included a discussion of these and other pertinent risk factors in its annual report on Form 10-K most recently filed with the SEC.  UGS disclaims any intention or obligation to update or revise any forward-looking state-ments, whether as a result of new information, future events or otherwise.