01 April 2005

UGS Corp. Completes Acquisition of Tecnomatix; Creates the Number One Digital Manufacturing Solutions Provider in the PLM Market

FOR RELEASE Friday, April 1, 2005

PLANO, Texas, and HERZLIA, Israel – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, and Tecnomatix Technologies Ltd. (previously traded under NASDAQ:TCNO), the leader in Manufacturing Process Management (MPM) software solutions for the automotive, electronics, aerospace and other manufacturing and processing industries, today announced that UGS has completed its acquisition of all of the outstanding equity of Tecnomatix for approximately $228 million in cash, or $17.00 a share, net of any applicable tax withholding obligations. 

The acquisition, UGS’ fourth since launching independent operations in May 2004, positions UGS as the number one provider of digital manufacturing solutions in the PLM industry. CIMdata, a leading PLM consulting and research firm, estimates that investments in digital manufacturing initiatives by industrial companies are expected to grow by more than 25 percent annually over the next three years. 

UGS will market Tecnomatix as its digital manufacturing brand to include both TecnomatixTM and former E-factoryTM software.  The company will offer a fully integrated solution of Tecnomatix MPM to UGS Teamcenter® software users while continuing to offer Tecnomatix’ leading open standalone MPM solution integrated with the PLM environment of choice for its customers.  In addition, UGS plans to announce additional digital manufacturing-related technology enhancements later in 2005.

“We extend a warm welcome to the Tecnomatix customers who are now part of the UGS family.  With the acquisition complete, the value our customers have received will be even further enriched by the range of solutions, scalability and commitment to service that our newly merged companies will provide,” said Tony Affuso, chairman, CEO and president of UGS.  “The Tecnomatix acquisition combines complementary market presence and world-class technology and enhances UGS’ ability to deliver premier software solutions to our customers in the digital manufacturing space.  It represents a natural but significant step in UGS’ digital manufacturing strategy and another strategic milestone as we continue to expand our suite of software solutions in order to provide value across a product’s entire lifecycle.”

Tecnomatix Shareholders
Tecnomatix is now a wholly-owned subsidiary of UGS and its shares are no longer publicly traded.  Tecnomatix shareholders will receive materials advising them of the acquisition’s completion and payment procedures.  Payment will be made upon proper presentation of certificates formerly representing Tecnomatix shares to the paying agent, American Stock Transfer and Trust Company, and an accurately completed letter of transmittal. 

Digital Manufacturing Webcast
On April 20, IndustryWeek will host a webcast focused on digital manufacturing.  UGS will be a presenter during the webcast along with an industry analyst and a digital manufacturing customer.  Visit https://www.ugs.com/forms/webcast_dig_manufacturing.shtmlfor more information or to register. 

About Tecnomatix
Tecnomatix is the most widely-used digital manufacturing solution, enabling organizations to design, simulate and execute production processes. Digital manufacturing is a critical component of product lifecycle management, helping businesses increase profitability by improving the way products are built.  More than 5,000 companies worldwide – including BMW, Lockheed-Martin and Anheuser-Busch – are using Tecnomatix to reduce operating costs, accelerate product introductions and shorten time to volume while maintaining high levels of product and process quality.  Tecnomatix leverages the UGS Open Manufacturing BackboneTM technology platform which facilitates integration with other UGS solutions as well as third-party systems. With Tecnomatix, UGS brings together best-of-breed digital manufacturing solutions, deep process expertise and a proven knowledge management foundation spanning the entire product lifecycle. For more information visit: www.ugs.com/tecnomatix.

About UGS
UGS is a leading global provider of product lifecycle management (PLM) software and services with nearly 4 million licensed seats and 42,000 clients worldwide.  The company promotes openness and standardization and works collaboratively with its clients in creating enterprise solutions enabling them to transform their process of innovation and thus begin to capture the value of PLM. 

The statements in this news release that are not historical statements, including statements regarding future product integration and development and benefits of the transaction 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, loss or downsizing of customers, competition, international operations and exchange rate fluctuations, acquisitions, changes in pricing models 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.

Note:  UGS and Teamcenter are registered trademarks of UGS Corp. or its subsidiaries in the United States and in other countries.  Tecnomatix, Open Manufacturing Backbone, and E-factory are 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.