BAE Systems’ Military Air Solutions Business Unit Selects UGS Product Lifecycle Management Software

UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced that Military Air Solutions, a business group of BAE Systems, has selected Teamcenter® software as its enterprise knowledge management technology for specific aircraft platforms within its group. Teamcenter replaces the existing solution and a number of legacy systems. Military Air Solutions, which selected UGS following a comprehensive evaluation process, will use UGS’ Teamcenter to support its new business model of providing enhanced post-production support for customers’ aircraft. Teamcenter will serve as the foundation for Military Air Solutions’ maintenance, repair and overhaul (MRO) solution and will manage all of the product configurations for an individual aircraft – from design to disposal. It will also serve as a virtual knowledge manager, seamlessly integrating the data and functions associated with aircraft engineering and post-delivery service and support.

One example of how Military Air Solutions will use Teamcenter is to ensure that the British Ministry of Defence (MoD) has its required aircraft fleet available for operational use at any given time. Using UGS’ PLM technology, Military Air Solutions’ in-service personnel will have global access to product data that will help predict maintenance activities and requirements for spare parts, thus reducing aircraft downtime. “BAE Systems is moving toward greater involvement in the life support of its products by working in partnership with its principal customer,” said Graham Malley, BAE Systems’ PLM Program manager. “With the lifespan of an aircraft typically expanding to more than 50 years, managing complex data needed to build, modify, repair and operate the aircraft is a challenging task.” “We understand the difficulty that a premier global defense company like BAE Systems has in carrying out effective MRO services for such complex products as aircrafts,” said Paul Vogel, senior vice president and managing director, Europe, Middle East and Africa, UGS. “UGS’ PLM technology will help BAE Systems Military Air Solutions provide leading in-service and MRO support to its customers and continue to focus on driving leading aircraft performance around the world.”

About BAE Systems

BAE Systems is a global defence and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, information technology solutions and customer support services. With 88,000 employees worldwide, BAE Systems’ sales exceeded £13.7 billion pounds sterling (US25.4 billion dollars) in 2006.

About UGS

UGS is a leading global provider of product lifecycle management (PLM) software and services with 4.3 million licensed seats and 47,000 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 the expected benefits of the customer relationship, the successfulness of the implementation, the total estimated contract value, 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, partnering strategy, 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.