DARATECH SUMMIT 2006, CAMBRIDGE, Mass. – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced that UGS and FunctionBay, Inc. have entered into a technology partnership that enables UGS to leverage the RecurDyn™ multi-body dynamics solver in NX™ Digital Simulation software.

UGS made this announcement in conjunction with its Lifecycle Simulation announcements at today’s opening of the Daratech Summit 2006 event in Cambridge, Mass., where UGS Chairman, CEO and President Tony Affuso delivered a keynote address. (see separate release)

“The UGS PLM Open business model provides an enabling architecture that allows our partners to easily integrate their solutions with our products,” said Affuso. “The partnership with FunctionBay supports our Lifecycle Simulation strategy, featuring the world’s first end-to-end Digital Simulation solution UGS is keenly focused on elevating the role of CAE within the digital product development process. The goal is to provide our customers a comprehensive range of CAE applications – including UGS and partner solutions – to help them achieve product innovation.”

RecurDyn™/Professional is an advanced multi-body dynamics software that is founded on a recursive formulation for the equations of motion, relative coordinates, and advanced numerical integration techniques. The solution simulates simple through complex mechanical systems that are made up of rigid or flexible bodies.

“We are very pleased to partner with UGS to accelerate RecurDyn technology into the global digital simulation industry through NX Digital Simulation,” said Jin H. Choi, chairman, FunctionBay, Inc. “UGS’ open simulation framework has provided us an efficient integration process, and we look forward to working with UGS to further extend our offering within the NX environment.”

“UGS is excited to expand its simulation capabilities to include a new, multi-body dynamics solver,” said Jim Rusk, vice president, UGS Digital Simulation Solutions. “Partnering with FunctionBay provides our customers flexible options to select the motion simulation technology that best meets their specific application requirements. RecurDyn has demonstrated excellent performance and is well-known in the industry.”

How RecurDyn Works

RecurDyn uses a unique calculation method to solve for dynamic behavior and provides notable advantages for all engineers, but especially those who require tight design and analysis activity integration, motion simulation best practice templates and motion simulation data management.

Typical industrial applications include:

1. High-Tech/Consumer electronics – copiers, printers, disk drives, home appliances, camera mechanisms, DVDs, etc.
2. Automotive/Vehicle – engine assemblies/sub-systems, transmission/drivetrain assemblies and sub-systems, door mechanisms, wiper mechanisms, etc.
3. Heavy Equipment – crawler tractors, tracked construction equipment, farm equipment, cranes, excavators, etc.
4. Aerospace/Defense – aircraft landing gear systems, hydraulic actuation systems, guidance systems, satellite systems, land-based rovers, aircraft engines, etc.

The new RecurDyn capabilities will be available next quarter in the maintenance release of NX. Future releases of NX will incorporate additional advanced RecurDyn features.

For more information, visit http://www.ugs.com/products/nx.

About FunctionBay, Inc.

FunctionBay Inc. is an international company with innovative technologies for mechanical system simulation. It is headquartered in Korea and it has branches in Germany, United States, and Japan. Its core technology is the RecurDyn software, which focuses on Multi-Body Dynamics (MBD). The importance of mechanical system-level simulation is increasing and FunctionBay is positioned to meet the evolving needs of its customers. RecurDyn™ features interfaces to other CAE technologies such as FEA, control systems modeling and optimization. For more information on RecurDyn, customers in North America should call 734-572-9630 or visit www.motionport.com. Customers in other regions should visit www.functionbay.co.kr.

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. For more information on UGS products and services, visit www.ugs.com.

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Note: UGS, 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. Recurdyn is a trademark of FunctionBay, Inc. 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.

CONTACTS:

Dora Smith
314-264-8480
dora.smith@ugs.com

Brant Ross
734-572-9630
brant.ross@motionport.com