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of US$296.7 Million; Performance Marks
12th Consecutive Quarter of Revenue Growth for PLM Industry Leader

PLANO, Texas und KÖLN, 16. August 2006 – UGS Corp., a leading global
provider of product lifecycle management (PLM) software and services, today
announced second quarter 2006 results.

Second quarter financial highlights include:

· Total revenue increased to US$296.7 million, 4 percent growth over the
same period a year earlier.
· Software revenue increased to US$221.2 million (including license and
maintenance revenues), or 5 percent growth as compared to the second quarter
2005.
· Total revenue and software revenue increased in each geographic region
compared to the same period in 2005.
· cPDM software revenue grew 18 percent over the same period a year
earlier. (cPDM represents Teamcenter software revenue and excludes digital
manufacturing software revenue.).
· EBITDA (defined below) was US$69.3 million, or an 80 percent growth
over the same period a year earlier.
· Operating income increased to US$10.1 million and includes the impact
of acquisition-related intangible amortization costs of US$39.1 million.
· These amounts are not adjusted for the impact of deferred revenues
written off in connection with acquisitions. These write-offs had the
effect of reducing second quarter 2006 revenues by US$0.2 million and 2005
revenues by US$3.4 million.

“We continue our drive to sustain solid growth and improve operating income
while we focus on executing our strategic plan to position the company for
enhanced growth,” said Tony Affuso, chairman, CEO and president of UGS. “As
we complete the reorganization of our sales force to focus on verticals and
mid-market channels, we are currently adding needed sales capacity. We have
seen early progress in our mid-market channel strategy marked by strong
double digit software growth in the quarter. During the second quarter we
also continued to receive third-party accolades for our software and service
through such prestigious designations as being named a Caterpillar Strategic
Supplier, the Honda Engineering Supplier of the Year Award, Ford’s Q1
Certification, GM’s Supplier of the Year Award and Frost & Sullivan’s PLM
Company of the Year Award.”

Business Highlights
· UGS mid-market approach continued to gain steam through UGS Velocity
Series™ portfolio wins as well as increased channel expansion. Second
quarter indirect channel revenue increased by 30 percent, and the company
signed more than 50 new partners in the first half of the year. (Mehr
Informationen folgen in separater Pressemeldung)


· Kaltenbach Maschinenfabrik GmbH & Co. KG, a global supplier of machine
tools, has selected Solid Edge® 3D CAD software to develop its range of
circular and band saw machines as well as sectional steel processing
systems. Following evaluation of several competing products, Kaltenbach
selected Solid Edge for its flexibility, user-friendly design and support.
(Mehr Informationen folgen in separater Pressemeldung)
· Radkersburger Metallwarenfabrik, an Austrian-based die manufacturer,
has selected NX CAM Express® software for manufacturing its deep drawing
dies. (Mehr Informationen finden Sie in der Pressemeldung vom 14.08.06)
· UGS today announced an original equipment manufacturer (OEM) agreement
with China’s Jilin University (JLU) to integrate one-step formability
analysis technology developed by JLU into NX™ software, UGS’ digital product
development solution. The technology, developed by JLU’s Institute of
Auto-body and Die Engineering (IADE), helps improve design and manufacturing
processes and is expected to be available in NX commercially in the third
quarter of 2006.

The company expects to realize revenue from the contracts highlighted above
over multiple quarters.


Über UGS
UGS ist ein führender Anbieter von Software und Services für das Product
Lifecycle Management mit weltweit fast 4 Millionen installierten Lizenzen
und 46.000 Kunden. Der Hauptsitz liegt in Plano, Texas. Die Vision von UGS
zielt auf eine nahtlose Zusammenarbeit von Unternehmen und ihren Partnern in
weltweiten Innovations­netzwerken: Die offene Unternehmenssoftware von UGS
bildet die Grundlage für die Entwicklung und Fertigung von hochwertigen
Produkten und Dienstleistungen und erfüllt zugleich den Zweck, die Kunden
bei der weiteren Verbesserung ihrer Innovationsprozesse zu unterstützen.
Weitere Informationen über Produkte und Dienstleistungen von UGS finden
sich unter
» www.ugs.com.

Hinweis: UGS, JT, NX, Solid Edge, Teamcenter, Tecnomatix, Velocity Series
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 our business, results of operations expected
financial performance 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, loss or downsizing of customers,
competition, failure to innovate, international operations and exchange rate
fluctuations, terrorist activities, acquisitions, changes in pricing models,
intellectual property and losses of key employees. UGS has included a
discussion of these and other pertinent risk factors in its annual report on
Form 10-K 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.


Kontakt:
UGS
Niels Göttsch
++49 (0)6103-20 65-364
niels.goettsch@ugs.com

LEWIS PR
Marina Ziegler
++49 (0)89-173 019-28
» marinaz@lewispr.com


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