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it uses the same mechanism for Deep Packet Inspection (DPI) but its only Called HTTPS Inspection in TMG. so for the DPI Mechanism you can check the below link it has the most good and simple description for it.
http://www.wired.co.uk/news/archive/2012-04/27/how-deep-packet-inspection-works
i think you mean the TMG HTTPS inspection, anyway the answer isit will play the (Man in the middle) role.read about how man in the middle work, that is how HTTPS ispection works.