Boeing Selects UGS’ Teamcenter as its Enterprise Data Management System; First Successful Deployment on JDAM Program

Boeing to Use Teamcenter as its Enterprise Data Management System on Future Programs To Enhance its Design Anywhere, Build Anywhere Capabilities

Monday, July 17, 2006, FARNBOROUGH INTERNATIONAL AIRSHOW 2006 and PLANO, Texas – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced that Boeing, the world’s leading aerospace company, following an extensive year-long evaluation, named Teamcenter®, UGS’ digital lifecycle management solution as its enterprise Data Management system for future Commercial Airplanes and Integrated Defense Systems programs. Boeing’s JDAM (Joint Direct Attack Munition) Program, which successfully migrated all product data from multiple legacy systems to Teamcenter, is the first to implement the new system.
Boeing chose Teamcenter as its enterprise Data Management system because it needed an open, scalable platform that can be leveraged across the company and globally. A standard platform across programs allows Boeing to enhance collaboration and more effectively manage work loads, as well as human resources, within and between programs.

“Boeing and UGS have enjoyed a long working relationship, and we are pleased to expand our relationship to enhance our global capabilities,” said Dave Fennell, a Boeing vice president of Information Technology, who is responsible for the companywide design and support of PLM systems. “The broad use of Teamcenter with 30,000 users at Commercial Airplanes on our DCAC/MRM implementation and success on our JDAM program have shown the benefits of Teamcenter’s open platform and scalability, and reinforces our decision to make Teamcenter Boeing’s enterprise Data Management system going forward.”

Boeing will continue to implement Teamcenter on upcoming projects and programs, including at the Boeing Satellite Design Center in El Segundo, Calif., where teams are working to implement a standard environment, and where, by the end of 2007, it will be used for all relevant satellite program data; and the F/A-18E/F, F-15, T-45 and AV8-B programs, as well as other future programs.

“UGS is proud to work closely with world-class organizations like Boeing and to have Teamcenter selected as the enterprise Data Management system for all new Boeing programs,” said Tony Affuso, chairman, CEO and president, UGS. “It is always gratifying to help customers meet their challenging business objectives. Teamcenter’s open platform enables companies to leverage their global presence to enhance process excellence and productivity through consolidation and collaboration.”

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 is the winner of the IndustryWeek Technology of the Year Award for 2005.

UGS Leadership in Aerospace & Defense
UGS® software, used extensively by top 15 Aerospace & Defense OEM’s, has accrued more experience in Aerospace & Defense in mission-critical operations than any other comparable PLM product. With 2.3 million licenses and more than one million man-years of experience in delivering mission-critical operations on an unparallel scale, UGS is now the de facto provider of product lifecycle management and facilitator of enterprise transformation for the aerospace and defense industry.

About Boeing
Boeing is the world’s leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft, with capabilities in rotorcraft, electronic and defense systems, missiles, satellites, launch vehicles and advanced information and communication systems. Boeing’s reach extends to customers in 145 countries around the world, and it is one of the largest U.S. exporters in terms of sales. Headquartered in Chicago, Illinois, Boeing employs more than 153,000 people in more than 67 countries. For more information on Boeing, visit www.boeing.com.


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, Transforming the process of innovation and Teamcenter 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 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 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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Salim Rahimi

UGS Corp.

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