WILSONVILLE, OR, Feb. 23, 2005 – Mentor Graphics Corp. and UGS have signed a joint cooperation agreement to deliver tight interoperability between their products. Both companies are investing resources to develop this integration and plan to deliver the first stage of integrated products in the second half of 2005.

UGS will enhance Teamcenter and NX product lines to further its “mechatronics” initiative - the synergistic integration of mechanical, electrical, electronics and software technologies into electro-mechanical products. Mentor Graphics will also enhance it’s CHS through this collaboration by providing tight interoperability between the electrical and mechanical worlds.

“We are excited about this partnership because it will provide strategic value to our customers,” said Chuck Grindstaff, UGS products executive vice president. “By understanding and focusing on the needs and desires of our clients and their customers, we are able to maximize the value we create throughout the extended enterprise. This is an important initiative that we have embarked upon and a key step in fulfilling our pledge to deliver industry leading solutions that work across the mechanical, electrical and software domains in Mechatronics.”