UGS Launches UGS Innovation Connection in Second Life; Becomes the First Pure-play PLM Company to Establish Presence in Mainstream Online Virtual World

FOR RELEASE Monday, April 23, 2007

PLANO, Texas - UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced the launch of its UGS Innovation Connection within Second Life®, a 3-D virtual world entirely built by its residents.  With today’s launch, UGS becomes the first pure-play PLM company to establish a presence in the mainstream online virtual world.

Since opening to the public in 2003, Second Life has grown explosively and today is inhabited by more than four million people around the globe.  UGS will use various locations throughout UGS Innovation Connection to collaborate with customers and partners, host virtual conferences and provide a more immersive way to experience its solutions just as they are used every day by customers around the world.  Customers and partners showcased in UGS Innovation Connection within Second Life:

• Hendrick Motorsports (HMS) - the only NASCAR® racing organization to win a Cup Series championship for four straight years.  HMS, which has been to Victory Lane more than 150 times, builds 750 engines a year and uses NX® software, UGS’ digital product development solution, and Teamcenter® software, UGS’ digital lifecycle management solution, to optimize engine configurations and drill into vehicle data to find information immediately, whether in the office or on the track.  HMS’ presence within UGS Innovation Connection will reflect the partnership between UGS and the winning race team and will include Hendrick’s #48 winning car. 
  
• JCB and the JCB DIESELMAX – a car that, in 2006, achieved a stunning average speed of 350.092 mph (563 kph) to break the land speed record for diesel-powered cars.  The new record was achieved using UGS’ NX software to design and develop the groundbreaking JCB444-LSR diesel engine.  The winning car used two turbo-charged, high performance versions of the JCB444 engine, underscoring its strength, performance and versatility that was originally created for use in JCB’s construction vehicles.  The company’s presence in UGS Innovation Connection within Second Life will exhibit the record-breaking vehicle as well as the diesel engine. 
  
• The Alloy – a UGS customer and one of the UK’s leading product design consultancies, delivering design and innovation services to companies worldwide.  The Alloy is featured within the customer showcase area where residents are able to view Alloy’s Concept Mobile Phone - Polygon - in 3D and learn how UGS® solutions make the design work possible. 

“Our launch in Second Life is just one example of how UGS continues to push into uncharted areas and experiment with ways to better deliver on our vision of Global Innovation Networks,” said Dave Shirk, executive vice president, Global Marketing, UGS.  “With the natural focus we have on 3D content creation and collaboration, the large number of our customers establishing Second Life presence, it was only logical that we would take a dive into Second Life.  We look forward to interacting with innovators everywhere who are interested in developing new ways of bringing innovative products to market.”

Moving forward, UGS will host product launch presentations in the Second Life Auditorium.  In 2007, UGS plans to launch updates for its NX, Tecnomatix™ and Teamcenter product portfolios.
To reach UGS Innovation Connection on Second Life, visit www.ugs.com/secondLife.

Second Life and Linden Lab
Second Life is a 3D online world with a rapidly growing population from more than 100 countries around the globe, in which the Residents themselves create and build the world which includes homes, vehicles, nightclubs, stores, landscapes, clothing, and games.

The Second Life Grid is a sophisticated development platform created by Linden Lab, a company founded in 1999 by Philip Rosedale, to create a revolutionary new form of shared 3D experience. The former CTO of RealNetworks, Rosedale pioneered the development of many of today’s streaming media technologies, including RealVideo. In April 2003, noted software pioneer Mitch Kapor, founder of Lotus Development Corporation, was named Chairman. In 2006, Philip Rosedale and Linden Lab received WIRED’s Rave Award for Innovation in Business. Based in San Francisco, Linden Lab employs a senior team bringing together deep expertise in physics, 3D graphics and networking.

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, Teamcenter, Tecnomatix, NX 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.  Second Life® and Linden Lab® are registered trademarks of Linden Research, Inc.   NASCAR is a trademark or registered mark of National Association for Stock Car Auto Racing, Inc. 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 marketing  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, partnering strategy, 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.