GOVERNMENT

UGS, a leading global provider of product lifecycle management (PLM) software and services, today announced that the Volvo Group has selected UGS as a strategic partner for Virtual Manufacturing Tools for deployment at the company’s manufacturing divisions worldwide. UGS made the announcement in conjunction with today’s opening of the Daratech Summit 2005 event in Cambridge, Mass., where UGS Chairman, CEO and President Tony Affuso is scheduled to deliver a keynote address. As a result of the agreement, the Volvo Group sites globally will be able to leverage common terms and conditions for using Teamcenter Manufacturing software (UGS’ product knowledge management and collaboration solution), E-factory software (UGS’ digital manufacturing solution) and Tecnomatix applications to enable global coordination in manufacturing process planning. UGS announced on January 4 a definitive agreement to acquire Tecnomatix, the leader in Manufacturing Process Management (MPM) software solutions for the automotive, electronics, aerospace and other manufacturing and processing industries. UGS’ open strategy was a key factor in the decision to choose UGS PLM software as the Volvo Group manufacturing units around the world today have different product data management (PDM), computer-aided design (CAD) and production systems. Volvo Group entities have made a joint decision in this area to select a new common software from UGS. The deploying units globally manufacture trucks, buses, construction equipment, diesel engines and aero engines. The Volvo Group carried out an extensive evaluation of Teamcenter applications prior to signing the agreement. UGS’ long-term commitment to research and development, open strategy and scalability for multi-site implementation were all key factors in the decision to select Teamcenter Manufacturing software, which will enable the Volvo Group to leverage new technologies and current business critical systems. Leadership in Automotive UGS’ contract with Volvo IT strengthens the company’s leadership position in providing PLM solutions to the global automotive industry. 9 of the top 10 automotive OEMs with a collaborative development partner have standardized on UGS. The contract also highlights UGS’ growing leadership in the high-growth sector of digital manufacturing – a PLM strategy that focuses on improving every aspect of how a company builds its products. CIMdata, a leading PLM consulting and research firm, estimates that investments in digital manufacturing initiatives by industrial companies are expected to grow by more than 25 percent annually over the next three years. UGS has reported more than a 100 percent increase in digital manufacturing-related revenue over the last four quarters. “The Volvo Group’s decision to implement a single digital manufacturing solution globally to enhance collaboration is a testament to their thought leadership in manufacturing,” said Arie van Essen, vice president for UGS’ Nordic Region. “The Volvo Group’s landmark decision to move to UGS confirms our leadership in the automotive industry. UGS is committed to deliver best in class technologies like Teamcenter and deploy them on our customers’ behalf.” Background: Volvo Group is one of the world's leading suppliers of transport solutions for commercial use. Volvo offers a broad range of trucks, construction equipment and buses. Volvo also provides engines for leisure boats and workboats as well as diesel-powered generator sets. In addition, Volvo has broad operations in the aerospace industry and also manufactures industrial gas turbines. For more information, visit www.volvo.com. UGS is a leading global provider of product lifecycle management (PLM) software and services with nearly 4 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.