UGS PLM Solutions Announces Largest-Ever European Contract

“Milestone” €15.2 Million (US$19 Million) Teamcenter® Contract From MTU Aero Engines To Provide Employees With Worldwide Access To Millions Of Documents; UGS PLM Solutions To Integrate Existing Unigraphics, CATIA, SAP and Microsoft Office Systems

PLANO, Texas and COLOGNE, Germany - Januar 20, 2004 - UGS PLM Solutions, the product lifecycle management (PLM) subsidiary of EDS, today announced MTU Aero Engines -- Germany’s leading aircraft engine manufacturer and an international driving force in the development, manufacturing and maintenance of aircraft engines for civil and military aviation -- has awarded it its largest-ever contract in Europe.

Under the €15.2 million (US$19 million) contract, MTU Aero Engines has selected UGS PLM Solutions as its new technology partner for product lifecycle management (PLM) and has standardized on Teamcenter®, the world’s most widely used suite of PLM solutions, as its PLM backbone for global collaboration.

“As we transform from a subsidiary business of EDS to operating more independently, this milestone contract symbolizes the momentum UGS PLM Solutions is enjoying in its space,” said Tony Affuso, president and CEO of UGS PLM Solutions. “Through this agreement, we look forward to leveraging our entrepreneurial roots as a software company for the benefit of MTU Aero Engines.”

Managing Information through Teamcenter
As part of the project titled “Product Lifecycle Management MTU Aero Engines” (PLM2), the company will optimize its processes and workflows worldwide on the Teamcenter solution suite from UGS PLM Solutions, enabling more efficient and simplified access to product-related data and documents and thus harmonizing its IT system environment.

The PLM solution at MTU Aero Engines will cover the management of more than 10 million documents, elements and objects accessed by more than 5,000 users. A number of legacy systems will be replaced, while the remaining applications will integrate into the new system. Integrated applications include UGS PLM Solutions’ Unigraphics® NX along with CATIA from Dassault Systemes, SAP and Microsoft Office.

“Our systems are effective by themselves but they lack optimum interaction,” says Erwin Pignitter, vice president information management at MTU Aero Engines. “To take a big step forward in this matter, we must develop and implement new software which will harmonize the diverse system landscape. Equally important is the chance to enhance our processes.”

In its attempt to clean up its system landscape, MTU Aero Engines chose UGS PLM Solutions as the single provider for both software and services.

“As an innovator in its industry, MTU Aero Engines decided to invest in this project now -- despite difficult economic times -- thanks in part to a process analysis showing significant potential for productivity improvements,” said Georg Wessels, president of UGS PLM Solutions Germany. “UGS PLM Solutions brings to MTU Aero Engines the industry’s best of breed software and services along with our global PLM project experience and our expertise as the market leader in the aerospace and defense industries. Cutting edge technologies such as these help facilitate international collaborations and joint ventures, and should help them continue to expand their leading position in the world market.”

About Teamcenter
Teamcenter, the world’s most widely used product data management solution, is a scalable, integrated solution that allows manufacturers to design new products in a communication environment that enables geographically distributed data sharing for product lifecycle data. Based on open standards, Teamcenter integrates with each customer’s existing IT investment -- and the systems of partners and suppliers -- further supporting rapid implementation and adoption throughout the extended enterprise.

Teamcenter brings together the collective knowledge and insight of the enterprise in an open, collaborative environment, so clients can make smarter product-related decisions that lead to better and more cost-effective products. Teamcenter creates an intellectual asset management environment that elevates knowledge as a corporate asset, uniting product knowledge with process innovation to deliver business value throughout the product lifecycle.

About MTU Aero Engines
MTU Aero Engines develops, manufactures and provides service support for aircraft engines, military and civil alike. Its customers are manufacturers and operators of engines and industrial gas turbines across the world. They appreciate the expertise, background and reliability which MTU Aero Engines utilises to satisfy their exact requirements. The quality and reliability which characterize the company's products and services, as well as its regional presence in many parts of the world, make MTU Aero Engines a preferred partner to customers worldwide. MTU Aero Engines operates affiliates across the globe. With its 8,400 employees and 2.2 billion euros in fiscal 2002 revenues, it is Germany's largest engine manufacturer and ranks among the major players in the industry. It is also the world's largest provider of independent commercial engine services. In the military arena, MTU Aero Engines is the leading German company for practically all aircraft engines flown by the Bundeswehr. Technologically among the leaders in the business, early this year the company won the 2002 Innovation Award of German Industry for an innovative high-pressure compressor it developed. For more information, visit www.mtu.de.

About UGS PLM Solutions
UGS PLM Solutions, a leader in product data management, collaboration and product design software and services with 41,000 clients, is the product lifecycle management (PLM) subsidiary of EDS. The company works collaboratively with its clients to create solutions enabling them to transform their process of innovation and thus begin to capture the promise of PLM. The combination of the former operations of companies including Structural Dynamics Research Corporation (SDRC), Engineering Animation Inc. (EAI) and UGS, UGS PLM Solutions has created some of the leading product design technologies that ultimately became the backbone of the PLM industry. Today, the company is a family of one building on three decades of leadership in continuing to be a pioneer in PLM. For more information on UGS PLM Solutions products and services, visit www.ugsplmsolutions.com

About EDS
EDS, the premier global outsourcing services company, delivers superior returns to clients through its cost-effective, high-value services model. EDS’ core portfolio comprises information-technology and business process outsourcing services, as well as information-technology transformation services. EDS’ two complementary, subsidiary businesses are A.T. Kearney, one of the world's leading high-value management consultancies, and UGS PLM Solutions, a leader in product data management, collaboration and product design software. With 2002 revenue of $21.5 billion, EDS is ranked 80th on the Fortune 500. The company’s stock is traded on the New York (NYSE: EDS) and London stock exchanges.

The statements in this news release that are not historical statements, including statements regarding the amount of new contract values, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond EDS' control, which could cause actual results to differ materially from such statements. For information concerning these risks and uncertainties, see EDS' most recent Form 10-Q. EDS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
www.eds.com



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