MTU Aero Engines Standardizes on UGS for Digital Product Development; Decision Displaces Company’s Existing Solution

Move to Standardize On UGS’ 3D Design and Computer-Aided Design (CAD) Solution, NX, Part of €1 Million (US$1.2 Million) Contract Extension

Monday, November 14, 2005, COLOGNE, Germany and PLANO, Texas – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced MTU Aero Engines GmbH, Germany’s leading aircraft engine manufacturer, standardized on UGS for digital product development as part of a €1 million (US$1.2 million) extension.

Under this new extension MTU Aero Engines will add another 85 seats of NX™ software, UGS’ digital product development software, replacing the existing computer-aided design (CAD) software. Including these additional seats, MTU Aero Engines will be operating 320 NX workstations.

UGS announced the original multi-million dollar PLM contract with MTU Aero Engines – UGS’ largest-ever contract in Europe at the time - standardizing (s.o.) on Teamcenter™ solution, UGS’ digital product data management solution, in 2004. (See separate release http://www.ugs.com/about_us/press/press.shtml?id=3618)

“The successful implementation of our PLM² project using UGS software confirms that our original choice was the right one,” said Erwin Pignitter, senior vice president Information Management, MTU Aero Engines. “The modular system-suite of UGS is the reason we are continuing with our plan to standardize our systems and at the same time we will continue to change and optimize our processes.”

“The decision of an industry leader like MTU Aero Engines to standardize on UGS’ PLM software versus our competition is a testament to the technical superiority of our solutions and our expertise in manufacturing in general and specifically the areas of aeronautics and aerospace,” said Tony Affuso, chairman, CEO and president, UGS. “MTU Aero Engines’ decision to expand the implementation of NX to replace their existing system confirms that we are moving in the right direction, both in regard to our technology and in the way we work together as partners with our customers all over the world.”

MTU Aero Engines selected UGS as its strategic partner for PLM software and services to enhance and simplify its PLM environment. The company’s PLM² project, initiated in 2003, laid the foundation for worldwide use of UGS’ NX and Teamcenter systems. Teamcenter optimizes processes and work sequences, provides simplified global access to product data and documents, and enhances efficiencies in the IT system environment.

About MTU Aero Engines

MTU Aero Engines is Germany’s leading engine manufacturer and ranks among the big players in the business. It operates affiliates in all significant markets and regions. In the commercial engine business the company cooperates closely with the world’s biggest engine manufacturers – General Electric, Pratt & Whitney and Rolls-Royce. In the military arena, MTU is the industrial lead company for practically all aircraft engines flown by the German military and an important partner in all major military engine programs in Europe. MTU’s network of maintenance shops is the world’s largest independent provider of engine maintenance services in terms of sales. Technologically, the company has established a global leadership position.

Further information about the company is available on the Internet at www.mtu.de

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, Tecnomatix, Teamcenter, NX 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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Cautionary Note Regarding Forward-Looking Statements

Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, competition from other companies in MTU Aero Engines’ industry and MTU Aero Engines’ ability to retain or increase its market share, the cyclicality of the airline industry, risks related to MTU Aero Engines’ participation in consortia and risk and revenue sharing agreements for new aero engine programs, risks associated with the capital markets, currency exchange rate fluctuations, regulations affecting MTU Aero Engines’ business and MTU Aero Engines’ ability to respond to changes in the regulatory environment, and other factors. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences.

MTU Aero Engines assumes no obligation to update any forward-looking statement.

Contact Information

Salim Rahimi

UGS

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