UGS Extends Strategic Alliance with Microsoft with New Reseller Agreement

UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced it has signed a new reseller agreement with Microsoft that extends the strategic alliance the two companies announced earlier this year. Under the new agreement, UGS becomes the first PLM company authorized to sell Microsoft SQL Server 2005, Microsoft’s market-leading database software, directly to companies looking for a comprehensive PLM solution fully supporting the Microsoft platform.

“UGS’ long-standing relationship with Microsoft was a critical factor in enabling us to announce last year, one of the industry’s only full scale PLM solutions to fully support SQL Server 2005,” said Chuck Grindstaff, executive vice president, Products, UGS. “That relationship was further strengthened with our joint strategic alliance announcement in May, and today’s announcement is the logical next step, enabling our world-class sales team to immediately begin delivering the industry’s most complete PLM solution directly to our customers who have embraced the Microsoft environment.”

Global UGS expertise, word-class PLM performance

As a result of the agreement announced today, Microsoft SQL Server 2005 is being added to the official UGS Price Book, enabling all UGS salespeople worldwide to quote prices directly to customers and to include the database software as part of an overall PLM proposal.

“This agreement helps make industry-leading PLM solutions readily available to enable manufacturing companies to bring innovative new products to market based on what customers want,” said Paul Flessner, senior vice president, Data Storage and Platform Division, at Microsoft Corp. “UGS PLM solutions in partnership with SQL Server 2005 fosters peak performance by enabling seamless collaboration throughout the entire extended enterprise, including suppliers and customers.”

Complementing its industry expertise as one of the world’s premier supplier of PLM solutions, UGS also delivers world-class PLM performance in the SQL Server 2005 environment as evidenced by the results of its most recent benchmark testing. In November 2005, after a series of comprehensive performance benchmarks, UGS announced that its Teamcenter® software, the world’s most widely used PLM portfolio, fully supports SQL Server 2005. The benchmarks were the largest Teamcenter test in a SQL Server environment and demonstrated a five-fold performance improvement compared to SQL Server 2000.

Specifically, UGS was able to simulate 5,000 concurrent Teamcenter users, which is equivalent to approximately 50,000 collaborative users, running on SQL Server 2005. The tests included a 1.1 second average response time with less than 15 percent average CPU utilization and no database errors, demonstrating that Teamcenter and SQL Server 2005 can support some of the industry’s most demanding PLM environments with the high levels of performance and availability that business requires.

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, Transforming the process of innovation and Teamcenter are trademarks or registered trademarks of UGS Corp. or its subsidiaries in the United States and in other countries. Microsoft is a trademark or registered trademark of Microsoft Corporation 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, successfulness of the alliance 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, partnering strategy, major design errors or security flaws 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.

Contact:
Jim Phelan
UGS
+1 314 264 8216
jim.phelan@ugs.com