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Hisense, a Leader in China’s Home Appliance Industry, Selects UGS’ Teamcenter as its PLM Backbone


UGS Partners with HP to Help Hisense Group Accelerate Product Innovation Capability and Build a World-Class Enterprise.

Friday, February 10, 2006, PLANO, Texas and BEIJING – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services and Hisense Group, a leader in China’s home appliance industry, today announced Hisense has selected Teamcenter™ software, UGS’ digital lifecycle management solution and the world’s most widely used PLM portfolio, as the backbone for its three-phase PLM program.

Following an extensive evaluation, Hisense selected PLM software from UGS and consulting and implementation services from HP Technology Solutions Group, UGS’ strategic alliance partner, to deliver an integrated enterprise repository to engineers’ desktops, provide predictable output through repeatable controlled processes and facilitate new product development through continuous verification of end-user needs following product launch.

“The ultimate goal of Hisense Group’s PLM vision is to provide the management with timely and accurate decision-making tools through an integrated platform for technical management and collaboration,” said Wang Zhihao, vice president of Hisense Group. “Upon complete implementation, Hisense expects its new PLM program to reduce its product development cycle time by at least 20 percent, improve process efficiency by at least 25 percent, lower overall development cost by 10 percent and increase the reuse rate of parts per components by 80 percent.

“We are very pleased to work with UGS and believe that its top-notch PLM products, superior technology and proven track record of its professionals combined with services provided by HP will certainly help Hisense improve our design and R&D capabilities to realize lean production, reduced time-to-market and enhanced product quality, laying a solid foundation for Hisense to achieve its goal of becoming a world-class brand by 2008,” said Zhihao.

“The fact that a leading Chinese enterprise like Hisense has selected UGS is a testament to our strength in the household appliance industry in China,” said Chuck Yuan, vice president and general manager of Greater China Operations, UGS. “PLM is an increasingly important business strategy for enterprises. It allows companies to digitally manage their products throughout the whole product lifecycle from conceptual design to retirement. UGS is dedicated to helping enterprises improve their competitiveness in both global and local markets. UGS’ professional advantages and industrial experiences will help users realize product innovation and flexibility and help enterprises develop competitive advantages.”

Industry Leadership Through PLM

Hisense Group continues to explore new industries, and as a result the depth as well as the breadth of its product-mix continues to expand.

“Hisense believes that the only way to maintain its leadership in the increasingly competitive market is to continuously launch advanced, high-quality and competitively priced products,” said Zhihao. “Product innovation has always been the driver for Hisense’s growth and in order to sustain leadership in this competitive segment, Hisense aims to optimize its product portfolio through technological innovation like the PLM program.”

Hisense Group plans to deploy and implement the PLM program in three phases to provide improved product information management, enhanced support for automation and decision making and tighter information integration and external coordination. Hisense Group has selected Hisense Air Conditioner Co., Ltd. as the pilot site for the PLM program.

Hisense Air Conditioner is facing multiple challenges including constant change management, time-to-market concerns, information sharing at different sites, capturing market feedback and design change reflecting the feedback. The PLM program at Hisense Air Conditioner, using UGS’ Teamcenter, is expected to improve operational efficiency and data accuracy, standardize management and increase the reuse rate of designs.

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, winner of the IndustryWeek Technology of the Year Award for 2005, is the de facto standard for PLM deployments, and is backed by UGS’ leadership in delivery.

UGS and its products recently received several awards from prominent Chinese media including “AI (Automobile Industry) Outstanding Solutions Provider” and “Top 100 IT Provider” in automobile industry for 2005 by Automobile Industry; “TOP 10 International IT Supplier of 2005” by MIE of China; “Best PLM Provider of 2005” by ERP World; “Golden Software of 2005” by Software World; “Recommended Best Design Software of 2005” by e-Manufacturing, for NX™ software; and “Star Product of 2005” by CWEEK for Teamcenter software.

About Hisense
Hisense Group is the largest professional telecommunications enterprise in East China’s Shandong Province. Founded 30 years ago as a small workshop enterprise, Hisense Group has since developed into an integrated business with commercial interests spanning household appliances, telecommunications, information technology, international trade and real estate. For years, Hisense has adhered to a philosophy of high technology, high-quality and superior service in its effort to establish its international brand name. The company has maintained high-speed growth through continuous optimization of is product mix and constant technological innovation. Hisense has also realized rapid expansion through capital injections. Its main product lines include TV sets, air conditioners, computers, mobile phones, refrigerators, computer software and network equipment

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, NX, 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 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 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.


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