June 27, 2005
UGS Launches Teamcenter 2005 With Three Initiatives Focused On Specific Business Requirements
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by Jeff Rowe - Contributing Editor
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UGS Corp. announced the launch of Teamcenter 2005 software, a landmark release of the entire portfolio of UGS' digital lifecycle management solution. Teamcenter 2005 represents the world's first comprehensive software portfolio to integrate idea management and requirements planning with comprehensive digital product development, digital manufacturing and digital lifecycle management processes.

The announcement underscores UGS' continued leadership in the high- growth collaborative product development management (cPDM) segment of the PLM industry. With more than two million seats in production globally, Teamcenter is the world's most widely used PLM solution that serves as the enterprise collaboration backbone for companies seeking a comprehensive integrated digital manufacturing process. In the first quarter of 2005, the company signed 22 enterprise contracts — defined as contracts with total contract value of more than US$1 million each — nearly doubling the number of enterprise contracts signed during the same period a year earlier — driving 38.4 percent total
revenue growth in cPDM.

"Teamcenter has established its strong leadership position in the PLM industry through UGS' consistent focus on our customers' business success," said Chuck Grindstaff, executive vice president of Products, UGS. "With Teamcenter 2005, UGS has delivered advanced new platform technology designed to speed implementations across all aspects of a product's lifecycle. As a result companies can more quickly and effectively transform their processes of innovation to bring new and exciting products to market. By delivering fully integrated, applications for up-front product planning and strategy, along with enhanced integration to Microsoft Office applications, Teamcenter 2005 effectively closes the
gap between ideation and innovative product solutions."

Focused On Business Requirements — The Three Initiatives

UGS' focus for Teamcenter 2005 is centered on addressing three of the industry's most critical business initiatives associated with product development and lifecycle management.
— New Product Development and Introduction (NPDI)

— Global Product Development

— Regulatory Compliance
The effective management and execution of each of these business initiatives can have a profound effect on an organization's ability to drive profit and revenue growth from new and existing product lines. Teamcenter 2005 includes functional enhancements throughout the entire product portfolio to support each initiative. New and existing Teamcenter customers — such as Callaway Golf — are expected to benefit from these enhancements.

"Callaway is constantly striving for innovation in a challenging product development environment that includes a global supply chain," said Dave Oakley, vice president Rapid Design & Development, Callaway Golf. "Combining this environment with the highly competitive market we serve produces a daunting demand for speed. By enabling us to more effectively communicate and collaborate on product designs with our key suppliers — regardless of their location — Teamcenter helps Callaway meet this demand while enabling us to maintain superior product quality. We look forward to the enhancements in Teamcenter 2005 to keep us one step ahead of our competition."

NPDI — Transforming the Best Ideas into Innovative Products

With the launch of Teamcenter 2005, UGS is delivering the most comprehensive solution for capturing an organization's best ideas — using familiar office productivity tools — and then helping them build those ideas into innovative products.

Companies realize that their success is dependant on the successful launch of new innovative products and services. For many organizations, the majority of their current revenue is generated by products that will be obsolete within five years. Yet history shows that the majority of new product ideas never make it to market and of those that do over half fail because they do not meet customer requirements or they are too late to capture market share.

According to the AMR Research Report, The Product Lifecycle Management Applications Report, 2003-2008, "The common thread across all manufacturers is getting the right innovative products to market faster than the competition, with sufficient supply and at an attractive profit."

However, a significant obstacle to successfully delivering more new products to market has been efficiently turning ideas into requirements and executing on these requirements to deliver innovative products. To date there has been a lack of scalable applications designed to support the complex decision making process associated with NPDI. In fact, most organizations today use common word processing and spreadsheet applications, such as those found in Microsoft Office, to manage their NPDI process.

According to Kevin O'Marah writing in the AMR Research Report, Trends in New Product Development and Introduction Processes, 2004, "Current tools dominating the NPDI process are low-cost, low-function personal productivity tools like spreadsheets, project management, and word processing."

However the same companies using these tools identified PLM-related software as their most strategic investments necessary to improve their NPDI processes. Again, according to Kevin O'Marah in the AMR Research Report, Trends in New Product Development and Introduction Processes, 2004, "Project management, CAD, and PLM are the three most critical technology tools when it comes to the success of the NPDI process."

Addressing this need to deliver sophisticated tools targeted specifically at the NPDI process, Teamcenter 2005 introduces a comprehensive NPDI solution that builds on the common office tools already in use at most organizations. Through its close relationship and strategic alliance with Microsoft, UGS is able to take advantage of Teamcenter's tight integration with Microsoft applications along with the leading scalability and new functionality in Teamcenter 2005 to help organizations realize the full benefit of NPDI.

Significant enhancements in Teamcenter 2005 address the NPDI process in a variety of ways, including:
— To promote and capture innovation, an open and collaborative environment is presented in which free thinking ideas are fostered, gathered, shared, discussed and filtered within an organization as well as with partners and customers.

— To exploit innovation, Teamcenter 2005 provides a collaborative decision support framework in which the most promising ideas can be objectively investigated, evaluated, compared and communicated.

— To execute on innovation, Teamcenter 2005 facilitates organizational collaboration so that individuals can work together more efficiently to manage and coordinate new product development and introduction and accelerate success.

— Finally, to deliver on innovation, Teamcenter 2005 provides a framework of planning and execution tools that optimize product and services launch processes.
"Microsoft is committed to working with key partners like UGS to help enterprise organizations facilitate collaboration and improve the product development cycle," said Don Richardson, director of the Manufacturing Industry Unit for Microsoft. "By building on the Microsoft foundation, Teamcenter's leading PLM functionality and scalability significantly enhance new product development and help drive peak performance across the entire manufacturing industry."

Global Product Development — Turning Globalization into a Competitive Advantage

By enabling effective global collaboration, Teamcenter 2005 transforms the globally distributed enterprise into a competitive advantage by leveraging the strengths of each location and minimizing the drawbacks of a widely dispersed project team.

Globalization has dramatically changed the way products are produced by manufacturers of all sizes. Small to medium size organizations are just as likely to engage in global outsourcing as a huge multinational enterprise. Globally distributed teams need to effectively communicate and collaborate throughout the product development process to produce innovative products of the highest quality in the least amount of time. As this trend continues, companies are realizing that new solutions are needed to manage this complex environment.

Teamcenter helps more organizations manage global product development than any other PLM solution. Recognizing global product development as one of its customers' critical business initiatives, UGS offers several features and enhancements in Teamcenter 2005 to ensure that geographically dispersed design and manufacturing teams can effectively compete and prosper in a global environment.

Teamcenter 2005 includes a wide variety of enhancements and rich functionality to support Global Product Development.
— Simplified installation and deployment of automated digital validation capabilities.

— Enhanced integrations with the Microsoft Office System, Microsoft Windows Server and Microsoft Windows Share Point Services v2.

— Further expansion of the industry's most complete Multi-CAD management with added support for UGS NX CAE/Routing, Autodesk Inventor, Mentor Graphics harness, Cadence PCB, Zuken PCB, and ECAD visualization.

— Best-in-class product definition management tools including product structure management, configuration management, change management and CAD integration.

— Unique, highly productive working environment for integrating company specific business processes, like engineering change management, supplier integration, new product introduction, release to manufacturing and document management.

— Project Management capability with Workflow enables customers to make critical program/project milestones visible and understand the impact of a change on the program plan.

— Integrated Requirements capability enables companies to capture market and compliance requirements and make them visible during the product development cycle, thus empowering users to validate changes and assess their impact against specifications.

— Worldwide collaboration among a broad variety of users across the corporate enterprise is enabled through integrated visualization allowing users to view, markup and analyze any type of corporate data, including CAD models.

— Ability to synchronize design data, share design models in workflow driven processes and collaborate across a fully digital product development environment.
"The functional enhancements in Teamcenter 2005 provide the tools necessary to effectively manage a global product development environment, but equally important are the ongoing advancements in hardware platform technology that make it all possible," said Chris Kelley, vice president, UGS Partner Program. "UGS and Intel have been working together for over eight years to ensure that UGS' innovative software solutions keep pace with the continual and rapid innovations delivered through Intel's mobile, workstation, desktop and server platform technologies. By ensuring our software solutions take full advantage
of the performance, functionality, scalability, reliability and affordability of Intel platforms, UGS helps its customers maximize their investments in our solutions."

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