New Analyst Report on New Product Development and Innovation Cites “Best-in-Class” Companies as Four Times More Likely to Use PLM Tools

Data Cited in Latest AberdeenGroup Research Series Helps Validate Business Value of UGS’ Teamcenter PLM Software Portfolio.

FOR RELEASE Tuesday, January 31, 2006, PLANO, Texas – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced that a new report from AberdeenGroup points to “best-in-class” companies as being four times more likely to use PLM technology to automate their product development process. The report – New Product Development: Profiting from Innovation, December 2005 – defines best-in-class companies as those whose performance in each of five product development categories falls into the top 25 percent when compared with their peers.

In its new report, Aberdeen cites data from its Product Innovation Agenda benchmark report which concludes that organizations experienced a 19 percent increase in product revenue; a 15 percent decrease in product cost; and a 16 percent decrease in product development cost from improved product innovation, product development, and engineering.

“Best-in-class companies are four times more likely to have PLM-related technology than their poorer performing competitors … Automation clearly plays a significant role in helping companies achieve product innovation and product development success,” the New Product Development report states. “Companies that are better able to meet product development targets, are also more likely to have centralized data and product knowledge than the industry norm. In addition, top performers are four times more likely to have integrated data and process automation, with collaboration infrastructures for projects and products.”

Aberdeen report helps validate business value of UGS Teamcenter technology

Aberdeen’s New Product Development report expands on the findings of its Product Innovation Agenda benchmark report which evaluated the product innovation, product development and engineering performance of manufacturers to determine the actions they are taking, business capabilities they are pursuing and technical enablers they are using to contribute to their corporate product strategy.

“Our research reinforces the fact that innovation is a team sport,” said Jim Brown, vice president Global Product Innovation and Engineering, AberdeenGroup. “New product development (NPD) is a complex, collaborative process that requires coordinating the innovation efforts of many to meet a common goal. But for those organizations that can effectively implement the processes and technologies necessary to improve their ability to innovate, the business benefits are significant.”

UGS’ TeamcenterTM software, the world’s most widely used PLM software portfolio and winner of INDUSTRYWEEK’s 2005 Technology of the Year Award, is one of the leading products in the new product development introduction process. The Teamcenter portfolio of digital lifecycle management solutions helps an organization’s business units work together as a team to capture and effectively direct their best ideas into innovative products that can be efficiently brought to market at a desirable price point. Teamcenter offers capabilities for idea and requirements management, program and project management, product development and process management. With these tools for collaborative product planning, development, and launch execution, Teamcenter integrates the activities of disciplines such as engineering, manufacturing, marketing, finance, procurement and sales.

“Teamcenter’s ability to enable companies to manage new product development and transform their process of innovation is completely consistent with Aberdeen’s new NPD report,” said Bill Boswell, senior director of Teamcenter Product Marketing, UGS. “This Aberdeen report contains tangible data that validates and quantifies the business value of leading PLM tools like Teamcenter for orchestrating new product development and introduction processes across organizational functions.”

Aberdeen’s report, New Product Development: Profiting from Innovation, was sponsored by UGS and can be downloaded at no charge from the UGS web site at http://www.ugs.com/products/teamcenter/?npdi

About AberdeenGroup

Founded in 1988, AberdeenGroup is the trusted advisor to the Global 5000 for value chain strategies and technology advice. Through its continued benchmarking and analysis of value chain practices, Aberdeen offers a unique mix of research, tools, and services to help G5000 executives assess their value chain performance, develop improvement strategies, and select value chain solution partners.

For more information, visit www.aberdeen.com or call 617-723-7890.

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 and intellectual property. UGS has included a discussion of these and other pertinent risk factors in its registration statement on Form S-4 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.

Contact Information

Jim Phelan

UGS Corp.

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