New York, Tuesday, June 21, 2005 - UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced it signed a software and services contract with Procter & Gamble (P&G) to implement a strategic sourcing solution – based on UGS’ Teamcenter® digital lifecycle management software portfolio – that P&G will deploy worldwide for its sourcing professionals and suppliers.

UGS made the announcement in conjunction with its annual industry analyst conference in New York.

After evaluating several solutions, P&G selected UGS’ Teamcenter to enable a web-based supplier relationship management (SRM) suite to integrate under the P&G corporate supplier portal.  By using Teamcenter’s sourcing community, P&G is able to manage all aspects of the supplier relationship in its single-window system.

“The P&G opportunity enables UGS to offer next generation SRM capability coupled with PLM,” said Jim Milton, executive vice president of global sales and services for UGS.  “The close collaboration between P&G and UGS has resulted in a set of capabilities that will streamline the sourcing process, optimize sourcing activities and, more importantly, provide analytics and tools for efficient decision making for the company.

Reducing Complexity

In awarding the business to UGS, the primary factor P&G cited for its decision was the potential for reduced complexity by using Teamcenter to integrate its existing architecture of multi-vendor sourcing solutions and linking SRM with product development and the sourcing process.  The company also cited Teamcenter’s robust collaboration capabilities, ease of use, ability to rapidly deploy the Teamcenter-based system and its proven scalability in implementations exceeding 20,000 users, as well as confidence in UGS’ software and support.

“P&G is creating a world-class sourcing environment that provides stakeholders in its procurement supply network with single-window access to the company’s sourcing applications and product data.  Strategic sourcing is a competitive advantage for P&G and this new system will help us accelerate the process from procurement to commercialization of innovations,” said Dave Schmid, Associate Director, Purchases, P&G.  “P&G procurement professionals will be able to make faster and more efficient sourcing decisions by quickly finding and reusing data created in other systems.  Also, by automating routine tasks and providing ‘self-service’ support for our suppliers we will be able to better focus on strategic sourcing decisions.”

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’s open enterprise solutions, fulfilling the mission of enabling them to transform their process of innovation.