Tecnomatix and UGS PLM Solutions Extend Strategic Alliance for Digital Manufacturing Process.

Business Editors/High-Tech Writers

HERZLIA, Israel & PLANO, Texas--(BUSINESS WIRE)--Jan. 28, 2004

Interoperability Between Logistics Analysis and 3D Factory Layout

Targets a Reduction in Factory Planning Time and Re-Design Costs

Tecnomatix Technologies Ltd. (NASDAQ: TCNO) and UGS PLM Solutions, the product lifecycle management (PLM) subsidiary of EDS, today announced significantly enhanced interoperability between eM-Plant, the production and logistics visualization tool offered by Tecnomatix and Factory CAD, the 3D factory layout software solution from UGS PLM Solutions.

The interoperability between eM-Plant and Factory CAD merges the best-in-class logistics analysis with 3D factory layout to provide manufacturers a single solution for designing factories and maximizing their productivity. It allows companies to visualize a 3D layout of their factories at the same time that they can optimize material flow through "what-if" simulation analysis.

"The strategic alliance between Tecnomatix and UGS PLM Solutions continues to deliver solutions that are transforming the landscape of the Digital Manufacturing marketplace," said Robert Nierman, executive vice president, UGS PLM Solutions Business Strategy and Marketing. "This latest announcement unveils the integration of best of class products delivering the benefits of a single comprehensive solution. Customers are the clear beneficiaries of this strategic relationship and are being rewarded with a level of interoperability between solutions previously unmatched in the industry. This will translate into tangible costs savings and dramatic reductions in the planning process."

"This is just the latest outcome of the close collaboration between UGS PLM Solutions and Tecnomatix," said Harel Beit-On, chairman and chief executive officer of Tecnomatix. "Factory CAD customers can now run extensive simulation and analysis on their factory models, while Tecnomatix eM-Plant users will be able to create even more detailed plant layouts. Working together, UGS PLM Solutions and Tecnomatix are helping manufacturers reduce planning time and increase quality."

The integrated solution is based on SDX, the standard for data exchange between 3D factory design and simulation. The collaborative approach allows manufacturers to generate a simulation model from 3D layout data automatically, then visualize, evaluate and optimize the production system. This new collaboration will enable companies to reduce factory planning time and associated re-design costs by verifying system layout, feasibility and performance throughout the entire design process.

"The integration of Factory CAD and eM-Plant allows simultaneous layout and performance analysis, enhancing the collaboration within the manufacturing organization," said Chuck Grindstaff, executive vice president, UGS PLM Solutions Products. "By bringing these important functions together with our technology, customers will be able to dramatically reduce the iterations that are a common part of providing an optimized factory layout. In today's environment, where success means pressure for a large variety of on-time new product introductions, coordinating the factory design, internal organization and supply chain is a must."

About UGS PLM Solutions

UGS PLM Solutions, a leader in product data management, collaboration and product design software and services with 41,000 clients and more than 2.6 million seats of technology operating in the market, 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 integration 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 design, collaboration and product data management technologies that ultimately formed the foundation 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.ugsplm.com or www.eds.com.

About Tecnomatix Technologies

Tecnomatix Technologies Ltd. is the driving force in Manufacturing Process Management (MPM). Today's leading global manufacturers are adopting MPM solutions to expand revenue potential and reduce costs by accelerating product introductions, shortening time to volume, and optimizing production execution. eMPower enables our customers to succeed with its collaborative, open platform and applications for defining, simulating, managing, and executing manufacturing processes across the extended enterprise. For more information on eMPower products and solutions for MPM, please visit www.tecnomatix.com.

This press release includes forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Such statements may relate to the Company's plans, objectives and expected financial and operating results. The risks and uncertainties that may affect forward-looking statements include, but are not limited to: currency fluctuations, global economic and political conditions, market demand for Tecnomatix products and services, long sales cycles, new product developments, assimilating future acquisitions, maintaining relationships with customers and partners, and increased competition. For more details about the risks and uncertainties of the business, refer to the Company's filings with the Securities and Exchange Commission. Tecnomatix undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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.