11 May 2006

Northrop Grumman Ship Systems Standardizes on UGS Tecnomatix Digital Manufacturing Solution

FOR RELEASE Thursday, May 11, 2006

PLANO, Texas – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced Northrop Grumman Ship Systems (NGSS), one of the leading full service companies for the design, engineering, construction, and life cycle support of major surface ships, standardized on Tecnomatix™ software, UGS’ comprehensive digital manufacturing solution, for all ship programs.

NGSS selected UGS Tecnomatix, following an extensive benchmark study of competing digital manufacturing solutions, to fully digitize the manufacturing planning and assembly simulation of their world class surface ships.

Shipbuilding is a complex task that requires the development of thousands of manufacturing and assembly operations and the synchronization of these operations with the designer’s content to insure accurate and on-time build requirements and work instructions.  The multi-faceted approach in developing, designing and delivering the manufacturing process includes many high value operations that occur for every hull. UGS Tecnomatix insures these operations are digitally developed and captured and that the system allows the detailed 3D validation of the operations to insure build ability and quality. Best in class operations are captured for reuse and cross-program sharing to improve overall shipbuilding efficiency.

“Our goal at NGSS is to leverage leading edge digital technologies from UGS’ Tecnomatix and Teamcenter solutions to enhance collaboration between our product design, manufacturing and production groups to enhance productivity and efficiency in bringing new ships to market,” said D.G. Ewing, Vice President Planning, NGSS. “UGS’ Teamcenter, which provides NGSS the integrated data environment to manage all product information and processes related to the program lifecycle, combined with Tecnomatix, its digital manufacturing solution with its proven ability to help industries simplify the manufacturing of complex products, creates the perfect solution to meet the rigorous challenges of shipbuilding and makes UGS technology the best fit for our needs.”

“UGS is proud that Northrop Grumman Ship Systems, one of the largest surface ship builders and a long standing valued customer, has selected Tecnomatix following an extensive benchmark study of competing digital manufacturing solutions,” said John Graham, executive vice president, Global Sales and Services, UGS. “This selection of UGS by Northrop Grumman Ship Systems reinforces UGS’ world leadership in the shipbuilding industry and adds another leading company to our existing customer base in the shipyard industry.”

Tecnomatix, UGS’ digital manufacturing portfolio, provides the widest domain coverage from part planning all the way through production management and feedback to product design. Tecnomatix is the only digital manufacturing solution of its kind that covers the depth and breadth of digital manufacturing requirements and is used by more industry leaders in more industry verticals than any other comparable digital manufacturing solution. The combination of Tecnomatix with Teamcenter creates a closer alignment with the UGS PLM Open business model and closes the gap between product and process design to help customers further accelerate time-to-market and enhance innovation.

About Northrop Grumman and Northrop Grumman Ship Systems

Northrop Grumman Corporation is a global defense company headquartered in Los Angeles, Calif. Northrop Grumman provides technologically advanced, innovative products, services and solutions in systems integration, defense electronics, information technology, advanced aircraft, shipbuilding and space technology. With approximately 125,000 employees and operations in all 50 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.

Northrop Grumman Ship Systems sector (NGSS), headquartered in Pascagoula, Mississippi, includes primary operations in Pascagoula, Miss., New Orleans, La., Gulfport, Miss., and Tallulah, La., as well as in fleet support offices in the U.S. and Japan. NGSS, which currently employs more than 18,000 shipbuilding professionals, is one of the nation’s leading full service systems companies for the design, engineering, construction, and life cycle support of major surface ships for the U.S. Navy, U.S. Coast Guard and international navies, and for commercial vessels of all types.

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, Tecnomatix, 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, 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 statements, whether as a result of new information, future events or otherwise.