UGS and Siemens to Deliver Software Enabling Manufacturers to Design and Program Production Environments for Products Still in Development

Integration of UGS PLM and Siemens Shop Floor Technologies Designed to Enable Digital Product and Process Design and Digital Automation Engineering to Occur Simultaneously, Dramatically Accelerating New Product Introductions

PLANO, Texas and NUREMBERG, Germany – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, and Siemens Automation and Drives (A&D) Group, the leading manufacturer in this field worldwide, today announced plans to deliver a software solution that will enable companies to design and program production environments for products that are still in development.
The software framework will make it possible for companies to simultaneously develop a new product, define its digital manufacturing environment and design the logic of the shop floor automation equipment. As a result, companies will be able to perform higher quality production line ramp-ups and accelerate the introduction of new products.

“As the world’s leading supplier of programmable logic controllers (PLC), Siemens has maintained a strong business and technology relationship with Tecnomatix – UGS’ digital manufacturing line of business,” said Thomas Schott, A&D’s head of Factory Automation. “It makes perfect business sense to expand that relationship to include UGS’ broader suite of PLM offerings so that we can help create even greater value for our mutual manufacturing customers by delivering seamless interoperability from product development through shop floor production.”

Expanded relationship compresses new product development time
The new solution will consist of software that integrates UGS’ TeamcenterTM software, the world’s most widely used PLM portfolio, with Siemens Simatic software, the standard automation system for controlling the industry’s widest variety of machines and plants. Through this joint effort, the two companies are significantly expanding a relationship that began in 1999 between Siemens and Tecnomatix (UGS acquired Tecnomatix in April 2005).

The integration of Teamcenter and the new Simatic Automation Designer facilitates product lifecycle collaboration and knowledge sharing, which will make it easier for product design engineers and manufacturing engineers to share information while working concurrently on development and production. Logic design for automating plant equipment, for example, can take place at the same time as product and process design, resulting in faster time to market for new products.

“In the automotive industry, our customers expect us to deliver a highly flexible production environment, while meeting ever increasing functional demands and shrinking delivery schedules,” said Dr. Wolfgang Schloegl, digital factory team leader with Siemens’ Automotive Solutions. “The ability to simultaneously develop the production system’s mechanic and electric together with our customer’s product development will enable us to meet these demands.”

“Speed-to-market is one of the main business drivers facing today’s manufacturers,” said Ziyon Amram, vice president Digital Manufacturing Solutions, UGS. “Disparate and incompatible software solutions no longer make sense in a world where product lifecycles are becoming shorter. Today’s announcement will create significant value for the global manufacturing industry by providing the tools to meet critical manufacturing business demands.”

About Siemens Automation and Drives Group
The Siemens Automation and Drives Group (A&D), Nuremberg, Germany, is the leading manufacturer in this field worldwide. Products supplied by A&D include standard products for the manufacturing and process industries and for the electrical installation industry as well as system solutions, for example for machine tools, and solutions for whole industries such as the automation of entire automobile factories or chemical plants. Supplementing this range of products and services, A&D also offers software for linking production and management (horizontal and vertical IT integration) and for optimizing production processes. A&D employs 60,800 people worldwide and in fiscal year 2005 (to September 30) earned a group profit of €1,210 million on sales of €9,844 million and orders of €10,190 million. www.siemens.com/automation

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, Tecnomatix, Teamcenter and Transforming the process of innovation are trademarks or registered trademark 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 and intellectual property. UGS has included a discussion of these and other pertinent risk factors in its annual report on Form 10-K 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.

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Jim Phelan

UGS Corp.

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