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We describe a Unified Modelling Language (UML) diagramming tool that uses an e-whiteboard, pen-based sketching interface to support collaborative design. Our tool allows designers to sketch UML visual modelling language constructs, mixing different UML diagram components, free-hand annotations and hand-written text. A key novelty of our approach is the preservation of hand-drawn diagrams and support for manipulation of the diagrams using pen-based actions. UML sketches can be "formalized" to computer-recognised and drawn diagrams, and exported to a 3rd party CASE tool.