10 February 2006

Hisense, a Leader in China’s Home Appliance Industry, Selects UGS’ Teamcenter as its PLM Backbone

FOR RELEASE Friday, February 10, 2006

PLANO, TexasandBEIJING– UGS Corp., a leading global provider of product lifecycle management (PLM) software and servicesandHisense Group, a leader in China’s home appliance industry, today announcedHisense has selected Teamcenter™ software, UGS’ digital lifecycle management solution and the world’s most widely used PLM portfolio,as the backbone for its three-phase PLM program.

Following an extensiveevaluation,Hisense selectedPLM software from UGS and consulting andimplementation services from HPTechnology Solutions Group, UGS’ strategic alliance partner,todeliver anintegrated enterprise repository to engineers’ desktops, provide predictable output through repeatable controlled processes and facilitate new product development through continuous verification of end-user needs following product launch.

The ultimate goal of Hisense Group’s PLMvisionis to provide the management with timely and accurate decision-making tools through an integrated platform for technical management and collaboration,” said Wang Zhihao,vicepresident of Hisense Group. “Upon complete implementation,Hisenseexpects its new PLM program toreduce its product development cycle time by at least 20 percent, improve process efficiency by at least 25 percent, lower overall development cost by 10 percent andincreasethe reuse rate of parts per componentsby80 percent.

We arevery pleased to work with UGSandbelieve thatitstop-notch PLM products, superior technology and proven track record of its professionals combined with services provided by HP will certainly help Hisense improve our design and R&D capabilitiestorealize lean production, reduced time-to-market and enhanced product quality, laying a solid foundation for Hisense to achieve its goal of becoming a world-class brand by 2008,” said Zhihao.

The fact thata leading Chinese enterprise like Hisense has selectedUGS is a testament to our strength in the household appliance industryin China,” said Chuck Yuan,vice president andgeneralmanagerofGreater ChinaOperations, UGS.“PLM is an increasingly important business strategy for enterprises.  It allows companies to digitally manage their products throughout the whole product lifecycle from conceptual design to retirement. UGS is dedicated to helping enterprises improve their competitiveness in both global and local markets. UGS’ professional advantages and industrial experiences will help users realize product innovation and flexibility and help enterprises develop competitive advantages.”

Industry Leadership Through PLM

HisenseGroup continues to explore new industries,and as a resultthe depth as well as the breadth of its product-mix continues to expand.

“Hisense believes that the only way to maintain its leadership in theincreasingly competitive market is to continuously launch advanced, high-quality andcompetitively pricedproducts,” said Zhihao. “Product innovation has always been the driver for Hisense’s growth andin order to sustain leadership in this competitive segment, Hisense aims to optimize its product portfolio through technological innovation like the PLM program.”

HisenseGroupplans to deploy and implement the PLM program in three phases to provide improved product information management, enhanced support for automation and decision making and tighter information integration and external coordination. Hisense Grouphas selected Hisense AirConditioner Co., Ltd. as the pilot site for thePLM program.

Hisense Air Conditioner is facing multiple challenges includingconstant change management,time-to-market concerns,information sharing atdifferent sites,capturing market feedback and design change reflecting the feedback.The PLMprogramatHisense Air Conditioner, using UGS’ Teamcenter,is expected toimprove operational efficiency and data accuracy, standardize management and increase the reuse rate of designs.

UGS Teamcenter powers innovation and productivity by connecting people and processes with knowledge.  Teamcenter’s comprehensive portfolio of proven digital lifecycle management solutions is built on an open PLM foundation.  Teamcenter, winner of the IndustryWeek Technology of the Year Award for 2005, is the de facto standard for PLM deployments, and is backed by UGS’ leadership in delivery.

UGS and its products recently received several awards from prominent Chinese media including “AI (Automobile Industry) Outstanding Solutions Provider” and “Top 100 IT Provider” in automobile industry for 2005 by Automobile Industry; “TOP 10 International IT Supplier of 2005” by MIE of China; “Best PLM Provider of 2005” by ERP World; “Golden Software of 2005” by Software World; “Recommended Best Design Software of 2005” by e-Manufacturing, for NX™ software; and “Star Product of 2005” by CWEEK for Teamcenter software.

About Hisense
Hisense Group is the largest professional telecommunications enterprise in East China’s Shandong Province. Founded 30 years ago as a small workshop enterprise, Hisense Group has since developed into an integrated business with commercial interests spanning household appliances, telecommunications, information technology, international trade and real estate. For years, Hisense has adhered to a philosophy of high technology, high-quality and superior service in its effort to establish its international brand name. The company has maintained high-speed growth through continuous optimization of is product mix and constant technological innovation. Hisense has also realized rapid expansion through capital injections. Its main product lines include TV sets, air conditioners, computers, mobile phones, refrigerators, computer software and network equipment

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, NX, Teamcenter, 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 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 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.