UGS and Microsoft to Align Presentation XML Formats to Expand Use of 3-D and Product Life-Cycle Management Information

LOS ANGELES — Sept. 14, 2005 — Today at the Microsoft Professional Developers Conference 2005, UGS Corp., a leading global provider of product life-cycle management (PLM) software and services, and Microsoft Corp. announced a collaboration to dramatically extend the reach of 3-D and PLM information in the enterprise. With support included for Microsoft’s Extensible Application Markup Language (XAML) format in UGS’ PLM software, alongside its widely used JT and PLM XML data formats, 3-D models created by these high-end tools will now be easily viewable on PCs running the Windows® Presentation Foundation.

The Windows Presentation Foundation (formerly code-named “Avalon”) is the new presentation subsystem for the Microsoft® Windows operating system that provides native support for declarative, markup-based programming with XAML, making it simpler for developers to enrich their Windows-based applications with 3-D elements.

As part of their work together, today at PDC05 the companies demonstrated a UGS PLM application creating a single file that included XAML, JT and PLM XML data by using the open packaging conventions formally known as XPS packages. That file was then viewed using the Windows Presentation Foundation, demonstrating how PLM users can now share files with Windows users who do not have a computer-aided design (CAD) or PLM software application installed on their PC. In addition, UGS users retain the ability to create more sophisticated PLM-related workflows using the data in JT and PLM XML files. This capability combined with UGS’ Teamcenter® product data management software results in better management and communication of PLM data between business partners and across all levels of the supply chain.

“XAML enables developers to create 3-D user experiences on PCs running the Windows Presentation Foundation,” said Eric Rudder, senior vice president of Servers and Tools at Microsoft. “We are excited that UGS is employing XAML to deliver rich 3-D information from its application suites. This is a significant step forward because now any individual associated with a product’s life cycle will have easy access to basic PLM data.”

“Microsoft is making 3-D pervasive with the advancements delivered by the Windows Presentation Foundation. UGS is taking advantage of our partner’s investment to make PLM pervasive throughout the enterprise,” said Chuck Grindstaff, executive vice president of Products at UGS. “This solution will allow UGS customers to take better advantage of their existing investment in JT and PLM XML and expand the number of disciplines involved in PLM.”

XAML redefines the way the user interfaces are created and managed, and provides for further extensions by developers. Windows Presentation Foundation makes 3-D graphics a core capability on Windows Vista™, the next version of the Windows operating system (formerly code-named “Longhorn”), giving Microsoft customers a richer experience on their desktop as more content providers create engaging interfaces with multimedia, vector graphics, animation and 3-D. UGS will take advantage of this enhanced capability to add customer business value by providing solutions that integrate PLM content in the Windows platform.

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.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

The statements in this news release that are not historical statements, including statements regarding UGS’ 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 that 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 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.

Microsoft, Windows and Windows Vista are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

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.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

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