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UGS to Make Award Winning Knowledge Management Software, Developed with Procter & Gamble Research Labs, Available Broadly


Innovative Teamcenter-based Technology is Named “Best Product Lifecycle Management System for Process R&D and Manufacturing” at Prestigious R&D Conference in London

Wednesday, September 27, 2006 - LONDON and PLANO, Texas -- UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced its plans to deliver the industry’s first PLM software product to effectively capture and share important laboratory research knowledge for extended enterprises in the process industries. The innovative technology for this new concept was developed in cooperation with Procter & Gamble, and is being honored today as the “Best Product Lifecycle Management System for Process R&D and Manufacturing” at the ELNS & Laboratory Informatics 2006 conference in London. The award will be presented to both UGS and P&G.

“Knowledge management solutions, such as the one UGS is announcing today, represent a significant opportunity to help R&D organizations in the consumer products and life sciences industries improve their product innovation processes,” said Jim Brown, vice president Global Product Innovation and Engineering, Aberdeen Group. “Our benchmark research indicates that protecting intellectual property and retaining company knowledge are significant challenges in today’s global product development environment. It also indicates that companies that are best in class at product development are four times more likely to use PLM solutions. The incorporation of laboratory notebook technology into PLM is a logical extension to PLM software, and promises to extend its benefits to R&D organizations.”

UGS-P&G teamwork leads to award-winning technology

UGS’ new Research Knowledge Management (RKM) solution will be released later this year as a core module of Teamcenter® software, the world’s most widely used PLM portfolio. RKM development began in the global research laboratory at P&G as a way to create an electronic laboratory notebook (ELN) that could be easily shared and stored in searchable records-bases.

Keith Caserta, Ph.D., associate director of health care R&D information systems and decision solutions at P&G, discussed P&G’s Teamcenter-based ELN solution – the foundation of Teamcenter RKM – in this month’s Consumer Goods Technology magazine cover story on innovation.

“Early on, with significant help from our PLM vendor, UGS, we were able to automate eight labs in upstream R&D, at one-third the projected cost, with significant value to the business…There is no reason why we shouldn’t meet our goals of a 5 percent overall R&D productivity boost based on faster notebook entry, and a 7 percent improvement in R&D productivity by eliminating repeat experiments, through good notebook searching capabilities. In addition, we’ll significantly improve IP (intellectual property) protection and management.”

It is this jointly developed technology that is being recognized at today’s event during the CENSA Global Automation Leadership Awards (GALA) Honors Ceremony. CENSA is an international industry association, focused on driving the state of the art for electronic records systems and collaborative informatics technologies worldwide. The CENSA GALA Honors Events are a series of honors events being hosted in 2006-2007 to recognize worldwide leadership in the fields of scientific automation and informatics.

“UGS’ focus on supporting the unique requirements of process industries represents a major advance for automation and information technology,” said Dr. Richard Lysakowski, Chief Science and Technology Officer and Industry Advisor of CENSA, Inc. “As an industry leader and one of the original PLM software and services companies, UGS has been supporting the product development and manufacturing requirements of discrete manufacturers for over 30 years. The development of their new Teamcenter RKM solution represents the first time a software supplier of this high stature has created a PLM solution capable of generating significant value for the process industry by establishing sophisticated enterprise-wide integration across R&D and manufacturing.”

Award-winning technology leads to high-value product

Working closely together, P&G helped UGS define requirements and add new capabilities to its existing Teamcenter collaboration solution. As a result, the new Teamcenter RKM offering will enable scientists to quickly determine if a particular experiment has already been conducted by a colleague and, if so, allow them to easily view the results and conclusions. By eliminating the need to repeat experiments that have already been done to satisfaction, organizations can save a very significant amount of time, enabling scientists to proceed to the next innovation.

The underlying technology for Teamcenter RKM required rigorous evaluation and scrutiny and customer reference screening before being selected as the Best PLM System for Process R&D and Manufacturing. The following items were included in the general criteria for vendors and developers of “Commercial Automation Products.”

* Vendor made significant innovations to address unmet technology needs in their product(s)
* The product solved significant business problems “out of the box”
* The product broadly applies within the category; it is not a point solution for a few customers
* “Product” means a best-in-class, high-quality, complete software product with full documentation, not a “solution” requiring vendor consulting and customization to make it work

“At UGS we pride ourselves on working closely with our customers to create high-value software solutions that meet their specific business needs while making sure that the final product can benefit the broader market,” said Chuck Grindstaff, executive vice president of Products, UGS. “We are honored to have teamed up with a world-class organization like P&G to create the award winning technology for our Teamcenter RKM solution, and we are proud that this solution will be available to R&D labs and manufacturers throughout the world to create real business value for their own companies.”

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 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.


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