UGS Recognized as PLM Software Leader in Aerospace and Defense, Automotive and High Tech Industries

Leading Market Research Firm Names UGS Top Provider Based on Revenues

Wednesday, January 10, 2007, PLANO, Texas – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced that IT market research and advisory firm IDC has recognized UGS as the leading PLM provider for the Aerospace and Defense, Automotive and High Tech industries.



IDC includes this ranking information in a recent report entitled, “Americas Product Life-Cycle Management Software 2005 Vendor Shares: Top 10 Vendors by Vertical Market,” (IDC Doc#203741 Sept. 2006). The report evaluates market share positioning for PLM providers using a vertical segmentation of 2005 revenue.



According to the study, UGS maintains the largest share of revenue in three of four discrete manufacturing industries -- Aerospace and Defense, Automotive and High Tech – and is the third-largest PLM vendor for the “other” discrete industry category, which includes industrial machinery manufacturing and shipbuilding. In addition, IDC notes that within the Automotive category, the fastest growing industry segment for PLM software, UGS alone accounts for more than one-third of the revenue generated by the top 10 PLM providers and nearly one-quarter of the overall revenue generated.



“The Aerospace and Defense, Automobile, and High Tech industries face significant pressures for innovative design to accommodate changing consumer preferences and increased fuel and material costs. These pressures have resulted in demands to reduce the number of prototypes, detect design problems early, and in many instances reduce costs and accelerate time to market, thereby creating strong demand for PLM in these industries,” said Noel Stevens, IDC analyst and report author. “IDC expects these pressures to result in the strongest growth in PLM to come from the automotive and high tech industries over the next five years. Existing leaders in these industries possess the greatest growth potential for PLM software.”



“Our clear leadership across multiple industries underscores the fact that UGS is not only a technology leader but also a vertical market expert with deep domain experience and knowledge that enables us to deliver high-impact, industry-relevant solutions,” said Leif Pedersen, vice president of industry marketing at UGS. “We’re extremely pleased to have IDC validate this competitive advantage.



“UGS has had a very good year in vertical industries. We have seen tremendous growth this year in the government military services sector of the Aerospace and Defense industry this year. In the Automotive industry, UGS won key contracts and was recognized for quality and customer support by major automotive OEMs. In the High Tech industry, where UGS signed more than 30 contracts in the first half of 2006, the company has been recognized as an industry leader by multiple industry analysts firms.”



UGS’ Industry Leadership

UGS® software, used extensively by the top 15 Aerospace and Defense OEM’s, has accrued more experience in mission-critical operations in the Aerospace and Defense industry than any other comparable PLM product. In fact, with 2.3 million licenses issued, UGS is a leading provider of PLM and facilitator of enterprise transformation for the Aerospace and Defense industry and Government Military services.



UGS is the leading provider of PLM software to the Automotive industry. With over 500,000 seats of software in use at the top 25 OEMs globally and their suppliers, UGS software is involved in the design, validation and/or production of almost every passenger vehicle being produced today.



Also a leading provider to the High Tech and Electronics industry, UGS software is widely used at leading High Tech and Electronics companies globally, including the top semiconductor and mobile phone manufacturers, four of the top five consumer electronics OEMs, three of the top five semiconductor equipment manufacturers, and eight of the top 10 contract manufacturers. UGS solutions enable companies to develop innovative products that capture the imagination of consumers.



For more information about UGS’ industry solutions visit http://www.ugs.com/industries/.



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 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 our business, 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, loss or downsizing of customers, competition, failure to innovate, substantial, prolonged economic downturns, financial distress in the automotive industry, international operations and exchange rate fluctuations, terrorist activities, acquisitions, changes in pricing models, intellectual property, loss of key employees and complexity of income tax assessments. 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

Shannon Couzens

UGS Corp.

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