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Modern Engineering and UGS to Operate Digital Manufacturing Center of Excellence

DETROIT, April 12 -- SAE 2005 World Congress, Cobo Center -- Modern Engineering, Inc. and UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, have signed an agreement to operate a digital manufacturing center of excellence that combines the most advanced, state-of-the-art process planning and simulation technologies and engineering expertise for the development of lean, efficient and safe manufacturing processes.

A press conference will be held at 9 a.m. today at the SAE 2005 World Congress show, exhibitor booth 1038, Cobo Center, Detroit.

The "Modern Digital Manufacturing Center of Excellence" fully supports the application and deployment of UGS' market-leading Tecnomatix digital manufacturing software solutions and simulation products, including eM- Plant(TM), eM-Planner(TM), eM-Engineer(TM), eM-Human(TM) and eM-Assembler(TM).

The digital manufacturing center, operated by a core staff of engineers, designers and technicians with in-depth experience in using advanced simulation and process validation technologies, has the capability to fully simulate a manufacturing system from raw material point of origin to finish product point of use.

  Following are some of the simulations that can be developed at the center:

  *  Proof of concepts
  *  Library modeling
  *  Factory layout
  *  Throughput analysis
  *  Material flow (station-to-station, zone-to-zone, line-to-line)
  *  Logistics (including warehouse and transportation systems)
  *  Ergonomics and human factors
  *  Tool design
  *  Robotics
  *  Packaging / containerization

"The alignment of Modern's technical capability with the superior quality of UGS' Tecnomatix digital manufacturing applications is a perfect fit," said Modern Engineering CEO Ron Wood. "Together, we can develop the most lean, efficient and safe operations possible for our customers."

As part of the agreement, Modern Engineering has been named a "certified value-added resource" by the Tecnomatix digital manufacturing engineering group and will provide training solutions to UGS Tecnomatix customers.

"We can now increase the number of experienced industrial and manufacturing engineers to support the deployment of UGS' Tecnomatix digital manufacturing software," said Doug Fish, director of sales for Tecnomatix digital manufacturing solutions, UGS. "This will be of tremendous value in servicing our customers going forward and will extend UGS' own professional network."

"Training is a valuable benefit of this agreement," said Bradley George, vice president of Modern Engineering's Supply Chain Engineering group. "This creates more opportunities for highly-skilled and trained engineering practitioners to teach and train our clients' engineering staffs in the use and application of digital simulation tools."

Digital manufacturing is one of the most effective methods for identifying manufacturing-related problems and guiding critical planning decisions to ensure lean processes. While this technology is becoming prevalent throughout the automotive industry, Mr. Wood noted that it can offer numerous benefits to any industry engaged in complex, high-volume manufacturing practices (i.e. heavy equipment, agriculture, recreational / pleasure craft, aerospace, consumer products, pharmaceuticals, furniture, etc.).

Tecnomatix(TM) software is the digital manufacturing brand of UGS, which acquired Tecnomatix Technologies Ltd. on April 1. Tecnomatix is the most widely-used digital manufacturing solution, enabling organizations to design, simulate and execute production processes. Digital manufacturing is a critical component of product lifecycle management, helping businesses increase profitability by improving the way products are built. More than 5,000 companies worldwide -- including BMW, Lockheed-Martin and Anheuser-Busch -- are using Tecnomatix to reduce operating costs, accelerate product introductions and shorten time to volume while maintaining high levels of product and process quality. Tecnomatix leverages the UGS Open Manufacturing Backbone(TM) software, which facilitates integration with other UGS(R) solutions, as well as third-party systems. With Tecnomatix, UGS brings together best-of-breed digital manufacturing solutions, deep process expertise and a proven knowledge management foundation spanning the entire product lifecycle. For more information visit: http://www.ugs.com/tecnomatix .

About Modern Engineering

Modern Engineering, Inc., a wholly-owned subsidiary of Virtual Supply Chain Engineering, Inc., has been a leading provider of staffing, engineering and design services to the worldwide manufacturing industry since 1946. Modern's expertise includes program management, product design & engineering, supply chain engineering, manufacturing engineering, tool and rack design, data management, software development, technical staffing and IT services. Modern offers services in all major CAD systems, including: UGS' NX(TM) portfolio (NX, I-deas(R) NX Series, Femap(R), NX Nastran), Unigraphics, CATIA v4 and v5, SDRC-iDEAS, Pro-Engineer, AutoCAD, SolidWorks, FactoryCAD, as well as a large portfolio of simulation tools. Modern recently introduced a new supply-chain engineering technology -- The Virtual Engineer(TM). For more information, visit the company's website at http://www.modernengineering.com/ .

About UGS

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. For more information on UGS products and services, visit http://www.ugs.com/ .

Note: UGS, Femap, I-Deas, NX, Tecnomatix, FactoryCAD, Open Manufacturing Backbone, eM-Plant, eM-Planner, eM-Engineer, eM-Human and eM-Assembler are trademarks or registered trademark of UGS Corp. or its subsidiaries in the United States and in other countries. All other trademarks, registered trademarks or service marks belong to their respective holders.

The statements in this news release that are not historical statements, including statements regarding product distribution, success and capabilities and other statements identified by forward looking terms such as "may," "will," "expect," "plan," "anticipate" or "project," are forward-looking statements. These statements are subject to numerous risks and uncertainties which could cause actual results to differ materially from such statements, including, among others, risks relating to developments in the PLM industry, competition, and intellectual property. UGS has included a discussion of these and other pertinent risk factors in its registration statement on Form S-4 most recently filed with the SEC. UGS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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