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10 October 2005

UGS Launches PLM Mid-Market Product Portfolio and Channel Program in EMEA

FOR RELEASE Monday, October 10, 2005

PRAGUE, Czech Republic and PLANO, Texas – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced an aggressive and industry-changing strategy to serve the EMEA high-growth mid-market -- focused on delivering enterprise-level PLM technology in an easy-to-deploy portfolio to companies in the mid-market.

UGS made the announcement at its EMEA mid-market launch event in Prague today, which was attended by more than 280 persons from its indirect channel partners, selected strategic customers and press executives.

“This is all about bringing PLM to the mid-market,” said Angus Marshall, director of Sales & Channel Programs EMEA for UGS. “We are changing the game with the introduction of a PLM product portfolio to the mid-market and an aggressive and industry-changing strategy with the launch of our new global channel program.”

Microsoft’s Günter Rester will deliver an address at the event. Rester is director of Discrete Manufacturing Industries for Microsoft EMEA.

“UGS is part of Microsoft´s global ‘Peak Performance´ initiative, which focuses on key solution scenarios in the manufacturing industries,” said Rester. “Among these scenarios, PLM and engineering collaboration has one of the highest potentials and UGS is one of our top partners in this space. Our close joint development with UGS leads to one of the most advanced PLM solutions built on a widely used collaboration software stack from Microsoft.”

With a name synonymous with speed and velocity, mid-market customer Spyker Cars is also presenting at the event. Spyker users UGS software in the manufacture and design of its innovative sports cars. Victor Muller, CEO of Spyker, will present.

UGS’ mid-market strategy is supported by two key components:

  • The new product portfolio – the UGS Velocity Series™ portfolio – marks the first offering to combine UGS’ Solid Edge™ and Femap™ software – two proven mid-market solutions for digital product development – with the unparalleled technology of UGS’ Teamcenter™ software, the world’s most widely used PLM portfolio.
  • The new Global Channel Program focuses on deploying enterprise-level PLM to mid-size manufacturers that is easy to buy, install, deploy, use and support. The new program will expand partner capacity by 50 percent by the end of 2006. Partners in the new UGS channel program can sell UGS’ entire suite of products, including portfolios like the UGS Velocity Series as well as individual products like NX™ - UGS’ flagship suite of digital product development software – and the new breakthrough collaborative product data management (cPDM) product - Teamcenter™ Express.

Mid-Market Business Drivers

Similar to large organizations, mid-size manufacturers face issues of global sourcing, product customization, accurate and timely quotations, program management, integrated design and manufacturing and increased regulatory requirements. However, mid-size manufacturers typically lack the resources necessary to effectively manage the explosion of 3D data associated with these issues.

In the September 2005 AMR Research Alert, “UGS Thinks Big About Midmarket PLM,” Michael Burkett says, “Midmarket investment in PLM will grow at a 12 percent Compound Annual Growth Rate (CAGR) through 2009, AMR Research estimates.  The introduction of the UGS Velocity Series shows UGS’ commitment to the unique requirements of midsize manufacturers, where affordability, ease of implementation, and total cost of ownership are so important.”

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.

UGS, Teamcenter, NX, Solid Edge, Femap, Velocity Series and Transforming the process of innovation 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 expected benefits of the product, adoption by customers, continued innovation 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, competition, failure to innovate and intellectual property. UGS has included a discussion of these and other pertinent risk factors in its registration statement on Form S-4 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.