10 January 2005

UGS Taps Company Veteran Pat Kruse to Lead Integration of Tecnomatix Technologies Ltd.; Names John Graham as Senior Vice President and Managing Director for Americas

FOR RELEASE Monday, January 10, 2005

PLANO, Texas – UGS, a leading global provider of product lifecycle management (PLM) software and services, today announced company veteran Pat Kruse, executive vice president of the Americas for UGS, will chair an executive steering committee responsible for the planning and execution of an integration strategy to transition Tecnomatix Technologies Ltd. into UGS.  In this newly-created position, Kruse will report directly to Tony Affuso, UGS chairman, CEO and president.

UGS last week announced a definitive agreement to acquire all of the outstanding equity of Tecnomatix (NASDAQ: TCNO), the leader in Manufacturing Process Management (MPM) software solutions for the automotive, electronics, aerospace and other manufacturing and processing industries, for approximately $228 million in cash, or $17.00 a share.  The transaction – which, subject to the receipt of required regulatory approvals, is expected to close by the end of the first quarter 2005 – marks the formal linkage between UGS and Tecnomatix, which have been working closely together through a strategic alliance since 2002. 

“UGS’ decision to acquire Tecnomatix opens many opportunities for the growth and development of our business.  Creating a comprehensive plan and deploying it well is mission-critical to our maximizing both rapid and long-term value from the acquisition,” said Tony Affuso, chairman, CEO and president of UGS.  “Pat has provided tremendous leadership as head of our Americas team and his proven skills make him a perfect fit for this task.”

Filling the Vacancy

UGS also today announced John Graham has joined UGS as senior vice president and managing director, Americas, effective immediately.  In his new role Graham will manage all sales, sales support and services delivery in the Americas and will report to Jim Milton, executive vice president, Global Sales and Services.  Already a resident of Dallas, he will be based at UGS corporate headquarters in Plano, Texas.

“John has a history of developing successful sales organizations and practices that help his teams not only meet, but exceed objectives,” Milton said.  “As UGS leads the drive to establish PLM as a mission-critical enterprise strategy and increase awareness of its importance at the CxO level within our accounts, John’s leadership skills combined with his experience in enterprise selling and his understanding of C-suite business issues will be invaluable to our efforts.”

Graham has held a range of executive-level sales and business development positions over the past 21 years.  He joins UGS from Capgemini, Inc., one of the world’s foremost providers of consulting, technology and outsourcing services, where he most recently served as vice president, Americas Sales.  Prior to joining Capgemini, Graham served as one of five global division vice presidents for Siebel Systems.  At Siebel, he was responsible for leading a newly-created division and for driving revenue operations in the central U.S. and Latin America, as well as in the telecommunications, media, energy and public sector vertical sectors throughout North America.

Prior to his tenure at Siebel, Graham served at EDS, where he held an increasingly responsible series of executive sales positions for several business units, and ultimately served as the company’s Chief Sales Officer.

About UGS

UGS is a leading global provider of product lifecycle management (PLM) software and services with more than 3.3 million licensed seats and 42,000 clients worldwide.   Headquartered in Plano, Texas, 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.