22 January 2007

New UGS Product Portfolio Management Solution Helps Manufacturing Organizations Optimize Innovation and Maximize Business Growth

FOR RELEASE Monday, January 22, 2007

PLANO, Texas– UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced Teamcenter for Portfolio Management, a new software offering designed to provide manufacturing companies with the portfolio planning and management tools they need to continuously ensure they are investing in the optimal mix of projects to maximize business growth. Teamcenter for Portfolio Management software – the first solution of its kind from a major PLM vendor – establishes the foundation for managing innovation by providing the tools needed to keep investment decisions aligned with company strategy, while making certain projects are properly resourced and budgeted.

Typically, companies use a variety of software tools for project and pipeline management. However, Product Portfolio Management (PPM) requires support for strategic decision making and product planning on a collaborative basis, along with optimization tools that can effectively identify the right mix of project investments. In contrast to PPM systems based on ERP software, Teamcenter for Portfolio Management incorporates a company’s product and process knowledge into strategic decision making processes. By making PPM an integral part of the product lifecycle and considering input from all parts of the enterprise, companies can positively impact their business by ensuring that operational execution is truly aligned to strategic need.

“One of the greatest challenges facing companies today is how to properly value product opportunities and make objective portfolio management decisions,” says Jim Brown, vice president Global Product Innovation and Engineering, Aberdeen Group. “Our benchmark research indicates that to improve product profitability, companies should measure product value and portfolio performance on a frequent basis, spanning both portfolio planning and product development execution processes. Best-in-class companies are using more technology for managing product portfolios and achieving an average of at least 11 percent higher margins on products that have been on the market for less than two years. Furthermore, almost a quarter of these companies are realizing margin advantages of 50 percent or higher.”

Integrated approach; rich functionality

As an integrated module of its industry leading Teamcenter PLM solution, UGS’ new Portfolio Management module is the first major solution to link strategic planning methodologies, such as portfolio management and program management, with the real-world parameters of an organization’s operational execution capability for innovation. Its integration into a comprehensive PLM suite allows organizations to identify, prioritize and select the right innovation projects that best align with company strategy and that can be accomplished with available resources. As a result, companies can maximize profits by getting the right innovations to market faster and at a lower cost.

“Considering an enterprise’s product and associated process knowledge are among its most important assets, it becomes obvious why its portfolio management function should be tightly integrated with its PLM system,” said Chuck Grindstaff, executive vice president of Products, UGS. “By leveraging Teamcenter’s industry-leading scalability and working in concert with its project and process management capabilities, Teamcenter for Portfolio Management is an invaluable tool for manufacturing companies trying to drive top line growth and transform their process of innovation. As a leader in the PLM industry, UGS is proud to be the only major PLM supplier with a solution for this critical business need.”

By integrating portfolio management into its Teamcenter suite of solutions, UGS is demonstrating its commitment to provide measurable business growth through greater innovation, allowing customers to maximize value throughout all phases of the product lifecycle. Teamcenter for Portfolio Management includes a variety of features that enable companies to express their business strategy through their future products.

· Collaborative portfolio definition and management capabilitiesallow organizations to create and agree on enterprise-wide or divisional portfolios and strategy

· Strategic objective definitionhelps organizations clearly define and disseminate strategy

· Formal idea capture and consistent value scoring methodologiesprovide systematic capabilities to capture and assess program and project candidates

· Portfolio analysis and review capabilitieshelp focus the organization onto the right ideas, initiatives, portfolios and projects

· Collaborative workflow and approval processesensure involvement and buy-in of all participants

· Portfolio performance measurement, tracking and pipeline managementhelps set high level goals, focus operational performance and provide continuous, real time performance feedback

· Strategic planning linked to operational executioncan be used to support business processes

· Open integration with key business systems(such as ERP, SCM and PLM) ensures key decisions are made based on up-to-date, accurate information

Articles, whitepapers and research on Portfolio Management can be downloaded from www.ugs.com/portfolio/.

About UGS
UGS is a leading global provider of product lifecycle management (PLM) software and services with 4.3 million licensed seats and 47,000 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 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 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, partnering strategy, major design errors or security flaws and intellectual property.UGS has included a discussion of these and other pertinent risk factors in its quarterly report on Form 10-Q for the period ended June 30, 2006 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.