UGS Implements New Global Channel Partner Program

UGS Extends its PLM Leadership by Delivering on its Mid-Market Commitment

Monday, March 20,2006, PLANO, Texas – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced it officially launched its new Global Partner Program with Channel Partner kick-off, recruiting and training events in the Americas, Europe and Asia/Pacific. UGS has now delivered on the two key commitments of its mid-market strategy announced last September – the implementation of its new Global Channel Partner Program and the shipment of its UGS Velocity Series™ portfolio.

“Our research indicates that a significant percentage of small to mid-size companies are planning to implement PLM solutions over the next 12 months,” said Jim Brown, vice president, AberdeenGroup. “Smaller manufacturers face many of the product development complexities that larger manufacturers face, and are taking advantage of mid-market PLM offerings. PLM offerings that are developed to be implemented with less overall effort and expense and that leverage solutions from leading vendors who provide experienced local implementation resources, are well positioned to offer PLM value to smaller manufacturers.”

UGS began implementing its new channel program during the first quarter of 2006 through Channel Partner kickoff, recruiting and training events in all parts of the world.

“Our channel partners are key to our commitment to ‘never let a customer fail’,” said Dave Shirk, executive vice president, Global Marketing, UGS. “Their experience with unique mid-market customer requirements is important to successful PLM implementations. We are excited about the increasing strength of our channel. UGS’ product strength combined with the extensive capabilities of our global channel partners will enable us to lead PLM in the mid-market.”

Scalable Partner Program Framework

The new UGS partner program is designed to meet the needs of diverse global partners and enable them to grow their businesses profitably. In addition to effective customer acquisition marketing tools, training and certification, the program offers this framework to reward partners:

* Scalable Margin Structure: three levels of scaled benefits by business model and revenue.
* Points for Profit: additional margin for executing best practices.
* Quarterly Growth Incentive: additional margin for quarter-over-quarter revenue growth.
* New Customer Growth Incentive: additional margin for acquiring new customers.
* Market Development Funds (MDF): additional joint marketing funds for local promotional activities
* Services and Maintenance: rewarding margin structure for customer maintenance contracts and professional services.
* Authorized Training Program: additional margin for reselling and/or delivering customer training.

“We’ve built a technology and business program aligned with customer requirements including open product architecture based on industry standards,” said Kerry Grimes, vice president, Mid-Market and Global Channel Sales, UGS. “We have changed the channel game in our industry by encouraging non-exclusivity and providing partners full access to our product portfolio so they can make the best decisions for their customers and for their own business growth needs. We are pleased with the feedback from our channel partners in all three geographic zones on the design and execution of our new Global Channel program.”

Mike Swanson, an executive with Maya, a UGS development and sales partner, provided this feedback: “The collaboration between UGS sales, marketing, and product development teams to deliver a channel partner program that offers real sales incentives and rewards for performance is impressive. UGS promised a world-class channel partner program and now they have delivered. We are excited to be part of the extended UGS sales team, providing the market’s leading product portfolio to our customers and prospects.”

For more information, visit www.ugs.com/partners.

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, Velocity Series 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 expected benefits of the channel program, adoption by resellers and distributors, 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 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.

Contact Information

Mendi Paschal

UGS Corp.

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