UGS' NX(TM) and Teamcenter(TM) Software Selected By World's Leading Shipbuilding Company

Howaldtswerke-Deutsche Werft AG (HDW) Places Multi-Million Dollar Order for Teamcenter and NX From UGS' Product Lifecycle Management (PLM) Solution Suite - Contract Reflects Strong Growth for UGS in Europe

PLANO, Texas and KIEL, Germany, Jan. 6 /PRNewswire/ -- UGS today announced Howaldtswerke-Deutsche Werft AG (HDW) -- a world leading shipbuilding company -- selected UGS for collaborative product engineering and data management through a multi-million dollar order for software and services that will drive the digital development of the most sophisticated non-nuclear submarines.

Under terms of the contract, which the companies signed in the third quarter of 2004, HDW purchased 200 licenses of NX(TM) (digital product development) and Teamcenter(TM) (collaborative product data management) software along with related services. HDW, the leading manufacturer for non- nuclear submarines, naval and commercial vessels, will use NX and Teamcenter as its standard for all product development in its submarine division. The contract is valid for all companies belonging to the HDW Group, including HDW (Germany), Hellenic Shipyard (Greece) and Kockums (Sweden).

HDW is a member of the German Submarine Consortium (together with Nordseewerke), and the German Frigate Consortium. Members of this consortium are Nordseewerke, Blohm+Voss, and Fr. Lurssen Werft, which decided to implement NX and Teamcenter in 2002.

The company's decision followed a comprehensive comparison between the company's former system, and UGS'. Based on the results of that comparison, HDW selected UGS and its NX and Teamcenter software to create a consistent CAD and Engineering Product Data Management (PDM) environment.

HDW designed its comparison using the following categories for evaluation:

* General functionality including part modeling, large assembly handling, usability, security aspects, openness.

* Shipbuilding specific requirements, like conceptual CAD-model, routing application, shipbuilding steel, handling of complex product structures, various views on product structures.

* Data migration

* Quality of interface to SAP business software

* Level of integration between CAD and PDM

* Market position of the supplier, ability for a long-term partnership

"Submarines are highly complex products. Hundreds of engineers are involved in the development process and they are defining more than 100,000 parts and components which all must fit and work together at the end of the day. To handle and keep control of all product and process related information and their dependencies is a real challenge. We are quite confident that our decision for UGS(TM) products and expertise is the adequate state-of-the-art CAD/PDM solution for our requirements which will enable us to support our design process and to achieve finally the Digital Submarine," said Dr. Gunter Sens, HDW's Senior Vice President Engineering & Design Submarines.

"We are delighted to have been chosen by HDW after such a comprehensive evaluation. HDW's decision is the latest in a series of decisions establishing UGS' pre-eminent position in shipbuilding. The creation of a partnership with such a successful and prestigious shipbuilding company is confirmation of the excellence of our technology and people and we look forward to supporting HDW's continuing success," said Jim Duncan, executive vice president for UGS EMEA.

UGS Success in Europe

The company reported third quarter revenue growth in its EMEA (Europe, Middle East and Africa) region of 23 percent, with software growth at 37 percent. In addition, year-to-date UGS reported revenue growth of 16 percent in EMEA, with software growth at 19 percent.

Third quarter highlights for UGS in Europe included announcing the largest-ever Nordic contract with Saab AB in which UGS will serve as the company's new technology partner for PLM. The company also announced during the third quarter that Rolls-Royce, following a competitive evaluation process, selected and entered into a framework agreement with UGS for the supply of PLM related products and services (see UGS Q3 earnings release -- www.ugs.com/about_us/press/press.shtml?id=3882 ).

"The HDW contract reflects UGS' ongoing success in Europe as well as our continuing success in taking PLM into the shipbuilding industry," said Duncan. "Our focus has always been, and will remain, serving our clients with excellence. PLM is a mission-critical enterprise strategy that helps companies transform their process of innovation, and increasingly companies in industries throughout Europe and turning to us to UGS to help them get there."

About Howaldtswerke-Deutsche Werft AG

Howaldtswerke Deutsche Werft AG in Kiel is today the largest German shipyard and the parent company of an international shipbuilding group. From a technological point of view, HDW is one of the leading shipyards for the design and construction of sophisticated naval and merchant vessels. At the same time, it is the leading manufacturer worldwide of non-nuclear submarines. Together with its subsidiary companies, HDW represents around 6,500 superbly trained staff in Germany, Greece and Sweden. The Group is based in Kiel with further activities in Rendsburg, Hamburg, Scaramanga, Malmo and Karlskrona.

HDW develops and builds sophisticated submarines and naval surface vessels with cutting-edge technology. In submarine construction, HDW is the first company in the world to offer a production-stage propulsion system based on the hydrogen fuel cell. In addition, HDW repairs, updates, and effects conversions to the submarines of their customers. Highly specialised civil ships are the fields of the surface vessel construction. Especially within the last four years, the HDW Group has delivered a series of particularly sophisticated mega-yachts.

About UGS

UGS is a leading global provider of product lifecycle management (PLM) software and services with more than 3.3 million licensed seats and 42,000 clients worldwide. Headquartered in Plano, Texas, the company promotes openness and standardization and works collaboratively with its clients in creating enterprise solutions enabling them to transform their process of innovation and thus begin to capture the value of PLM.

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