Frost & Sullivan Honors UGS with Customer Service Leadership Award for the Automotive Industry

Award Recognizes UGS’ Ongoing Commitment to Excellence in Technology and Customer Value

Tuesday, August 29, 2006 - PLANO, Texas – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced that Frost & Sullivan, a global growth consulting company, has presented UGS with the 2006 Customer Service Leadership Award in the PLM solutions space for the automotive industry. According to Frost & Sullivan, UGS has delivered “superlative customer value by understanding specific industry needs and aligning its solutions with that of its customers.”

Frost & Sullivan selects a company for its Customer Service Leadership based upon demonstrated excellence in customer service leadership within the industry. The recipient company has shown tremendous responsiveness to customer needs and has continually focused on long- and short-term customer profitability goals. In addition, the award recipient has demonstrated flexibility in tailoring its product offerings to suit customer businesses.

“We are deeply honored that Frost & Sullivan has selected UGS to receive such a prestigious award,” said Tony Affuso, chairman, CEO and president of UGS. “In the automotive industry and many others, we have transformed the process of innovation to help our customers drive top-line growth and meet the challenges of globalization. To be recognized with this award is a testament to our dedication to never let a customer fail.”

In order to select the Company of the Year Award recipient, Frost & Sullivan analysts track industry participants and monitor their customer service methods on an ongoing basis. This process includes interviews and extensive research collected from key market participants, market research and customer interviews. The companies’ efforts are then cross-tabulated and ranked based on the predetermined measurement criteria to determine the award recipient.

“We congratulate UGS on this achievement in the PLM industry,” said Sathyajit Rao, research manager for Frost & Sullivan. “UGS’ unique ability to identify the specific challenges faced by the automotive industry and provide innovative solutions in line with their needs has endeared the company to its automotive customers.”
Frost & Sullivan noted that UGS has the most complete portfolio of products for the automotive industry and recognized its ongoing commitment to excellence in technology and customer value.

“Competitiveness within the automotive industry today is pushed to the limits with manufacturers coming up with newer designs and models at breathtaking speed,” added Rao. “UGS’ portfolio has allowed its clients to reduce time-to-market and gain a competitive advantage. Additionally, our research found that automotive customers appreciate the ease of integration of UGS solutions with legacy offerings and laud the efforts of UGS in ensuring best practices are replicated at all global locations irrespective of the prevailing IT environment.”

The recipient of the Customer Service Leadership Award has excelled based on one or more of the following criteria:

* Providing value-added technology and services;
* Dominant market share in specific industry vertical;
* Responsiveness to customer needs; and
* Unique technology solutions and applications know-how that improves customer competitiveness.

For more information about Frost & Sullivan’s Best Practices Awards program go to www.awards.frost.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, Teamcenter 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 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.

Contact Information

Salim Rahimi

UGS Corp.

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