Ford Motor Company, Ford Global Technologies, LLC and UGS Establish Commercial Innovation and Software Marketing Alliance to Jointly Develop New Commercial Product Lifecycle Management (PLM) Technology

Ford Motor Company and Ford Global Technologies, LLC Select UGS to be the First PLM Commercial Software Company to Work With Ford’s Innovation Acceleration Center

Thursday, July 27, 2006, DEARBORN, Mich. and PLANO, Texas – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, Ford Motor Company and Ford Global Technologies, LLC (FGT), a wholly owned subsidiary of Ford that manages all intellectual property and technology commercialization matters for Ford Motor Company, today announced an alliance which will focus on accelerating the delivery of PLM commercial products that enable innovation within the vehicle development process. The new PLM solutions will help Ford and other UGS customers to be more innovative. UGS is the first PLM commercial software company to work with the Ford Innovation Acceleration Center.

Through the Ford Innovation Acceleration Center, based in Dearborn, Mich., Ford, and FGT work to reduce cycle time and bring better vehicles to market faster. The alliance between UGS, Ford, and FGT further demonstrates UGS’ commitment to work with customers to bring innovative customer-focused automotive PLM solutions to market more quickly on a global basis.

This alliance in itself is innovative, allowing Ford and FGT to collaborate with UGS to provide early input to the development of new PLM solutions and to gain immediate access to the new technology, while UGS is able to more quickly bring new commercial PLM software to market. Each party will bring valuable technology know-how and demonstrate an ongoing commitment to working together to create and market new commercial technologies.

“The fact that Ford, one of the most innovative companies in the world, and FGT have selected UGS to be the first PLM software provider to work in the Ford Innovation Acceleration Center shows the trust and confidence Ford has in the hard work and excellent results of the Ford-UGS team,” said Tony Hemmelgarn, executive vice president, Global Ford Account, UGS. “UGS shares Ford’s deep-rooted commitment to innovation and therefore is the perfect choice to be the first PLM technology provider to work with Ford and FGT in the Ford Innovation Acceleration Center.”

UGS has been a key PLM supplier to Ford since 1996, and currently provides PLM solutions to Ford’s Product Development, Powertrain Systems, Powertrain Operations, Vehicle Manufacturing Operations and Customer Service Units for all Ford® vehicle brands. NX™ software, UGS’ comprehensive digital product development solution; Teamcenter® software, UGS’ digital lifecycle management solution; and Tecnomatix™ software, UGS’ digital manufacturing solution, are all currently deployed within Ford’s extended global enterprise.

Last month, Ford Motor Company honored UGS with the Ford Q1 Certification. Ford Q1 Certification designates UGS as a preferred supplier of engineering software products and support, and recognizes the company for achieving excellence in four critical areas: capable systems, continuous improvement, ongoing performance and customer satisfaction. The Q1 certification is the highest commendation Ford gives to its suppliers.

About Ford
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures and distributes automobiles in 200 markets across six continents. With about 300,000 employees and 108 plants worldwide, the company’s core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Motor Credit Company.

About Ford Global Technologies, LLC
Ford Global Technologies, LLC, is a wholly owned subsidiary of Ford Motor Company based in Dearborn, Mich., that manages all intellectual property and technology commercialization matters for Ford Motor Company. FGT has offices globally and supports all Ford brands and automotive services world-wide. For more information on FGT and technology available for licensing, visit www.fordbetterideas.com.


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, Tecnomatix, Teamcenter and NX are trademarks or registered trademarks of UGS Corp. or its subsidiaries in the United States and in other countries. FORD is a trademark or registered trademark of Ford Motor Company 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 the expected benefits of the announced alliance, the successfulness of the technology developed 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 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.

Contact Information

Salim Rahimi

UGS Corp.

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