Fiat Auto and UGS Sign 5-year Agreement

   UGS Technology will Enable Fiat Auto and Power Train to Develop Digital
    Product 'Archetypes' for Collaboration Across the Extended Enterprise

    CYPRESS, Calif., May 16 Fiat Auto, a company of Group Fiat
and one of the European leaders in the automotive industry, and UGS
, a leading supplier of software and services for collaborative
product development, have signed a 5-year agreement under which UGS will
implement its comprehensive engineering technologies not only within Fiat Auto
and Power Train, but also across the automaker's entire supply chain.

    The agreement includes 500 seats of Unigraphics, UGS' integrated
CAD/CAM/CAE application, to be used for digital product development,
simulation and validation, 600 licenses of software from UGS' EAI division for
Web-based visualization and collaboration in the design and manufacturing
stages, and 1,500 licenses of i-Man, UGS' Internet-centric product life cycle
management system.  UGS' i-Man application will unify the management of
product lifecycle and production process information by integrating the
information currently resident in the variety of PDM (product data management)
systems used by different Fiat departments.

    By selecting UGS as a technology partner, Fiat Auto intends to implement a
platform that provides complete solutions to reduce product development time,
while improving time-to-market and lowering development costs.  In addition,
by integrating the current systems available within its extended enterprise
and providing access to Web-based collaborative engineering tools for the
optimized management of digital prototypes, Fiat Auto will eliminate errors in
product-related information throughout the lifecycle management process.

    Fiat Auto's adoption of i-Man as its enterprise-wide solution is the
premise for its implementation and integration of engineering data and related
information.  This integration enables Fiat Auto and its entire supply chain
to exploit leading-edge collaborative engineering technologies.
Using KBE (knowledge-based engineering) technology built-in to UGS'
Unigraphics software, Fiat Auto will now be able to rapidly develop digital
product archetypes, optimize the use of process-related information in the
design stages and more effectively reuse parts for the development of new
vehicles.

    Unigraphics' world-class KBE functionality is based on its unique
Knowledge Driven Automation (KDA) process, which utilizes technology known as
Knowledge Fusion.  Due to its ease-of-use, advanced functionality and tight
integration with Unigraphics, UGS' Knowledge Fusion technology is considered
by many manufacturing companies to be several years ahead of its nearest
competitor.

    "We are extremely proud that Fiat Auto, after an extensive competitive
evaluation and benchmark, has selected the winning combination of UGS people
and products," says Tony Affuso, president and CEO, UGS.  "Fiat's confidence
in our ability to effectively implement a world-class collaborative product
development environment, further validates UGS' leadership in the automotive
community.  We look forward to working with Fiat Auto to help the company
achieve its objectives of optimizing time-to-market, cutting costs and,
ultimately, making the company even more competitive in the automotive market.

    "This important agreement will help further fuel UGS' industry-leading
growth in Europe, while it significantly expands our automotive 'footprint'
and dramatically increases UGS' reach into the European automotive supply
chain."