PTC Signs Agreement With IBM To Offer PLM Solutions

Alliance will Provide Clients in China and in Targeted Growth Industries

NEEDHAM, MA. – January 25, 2006 - PTC (Nasdaq: PMTC), the Product Development Company™, today announced a cooperative marketing agreement (CMA) with IBM, effective January 1, 2006. The companies’ activities under the agreement will focus primarily on the emerging Product Lifecycle Management (PLM) market in China as well as a targeted account strategy in growth industries such as Electronics, Consumer Packaged Goods and Life Sciences in Europe and the United States.

With this agreement, PTC and IBM will offer a unique value proposition to customers for an end-to-end enterprise PLM solution that is easily integrated with other enterprise applications such as ERP, SCM and CRM. Customer business challenges including managing data from multiple CAD systems, environmental compliance, IP protection, geographically dispersed design collaboration as well as global product development can all be satisfied by this collaboration.

“We signed this agreement because PTC offers a fully integrated and heterogeneous PLM portfolio that combines authoring, data management, and content management assets that address customers’ demand for enterprise PLM solutions,” said Walter Donaldson, general manager, Worldwide Product Lifecycle Management, IBM. “The PTC relationship will complement IBM’s existing PLM strategy by delivering client value in emerging markets such as China and growth industries.”

This alliance complements PTC’s existing relationship with the IBM Applications On Demand Group within IBM Global Services, the IBM Software Group, and the IBM Systems and Technology Group. The further expansion of PTC’s relationship with IBM to include PLM Solutions will allow both companies to develop and deploy a broader, more strategic go-to-market plan that capitalizes on both companies’ respective strengths.

The cooperative marketing agreement combines PTC and IBM sales and marketing efforts and integrates PTC solutions with IBM’s industry-leading software and infrastructure products. The agreement also encompasses joint marketing programs and cooperative funding, as well as continued IBM solution center support of PTC solutions.

“As PTC aggressively pursues its 2008 target of $1 billion in revenue, we continue to evaluate new strategies to expand our reach and the overall value of our solutions into emerging geographies like China and growth industries like electronics, consumer packaged goods and life sciences,” said C. Richard Harrison, president and chief executive officer, PTC. “With this partnership, PTC’s industry-unique integral approach to PLM combined with open, scalable solutions from IBM will offer product development companies a true competitive advantage that will lead to faster product development with higher quality results.”

The agreement extends our relationship with IBM. This relationship started with the teaming agreement signed with IBM Global Services (IGS) in October 2004 in which IBM agreed to provide infrastructure for PTC’s PLM On Demand offering, and then was augmented by the reseller agreement signed in June 2005 with IGS to resell PTC PLM On Demand. PTC is a premier business partner with IBM.

About PTC

PTC (Nasdaq: PMTC) provides leading product lifecycle management (PLM), content management and dynamic publishing solutions to more than 40,000 companies worldwide. PTC customers include the world's most innovative companies in manufacturing, publishing, services, government and life sciences industries. PTC is included in the S&P 500 and Russell 2000 indices. For more information on PTC, please visit http://www.ptc.com.

Except for the historical information contained herein, matters discussed in this news release may constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include: PTC’s and IBM’s ability to effectively coordinate and manage joint activities (including marketing, sales, implementation and support) to facilitate our customers’ understanding of the benefits of an end to end product lifecycle management solution (including return on investment, ease of use, and value creation) and to deliver products and services that meet evolving customer requirements; PTC's and IBM’s ability to support the technology necessary to offer software solutions suitable for a hosted environment; expanding our technology footprint and augmenting our product and service lines through strategic business initiatives may not generate expected additional sales or revenues, which may impede our future revenue goals; along with such other risks and uncertainties as are detailed from time to time in reports filed by PTC with the Securities and Exchange Commission, including PTC's most recent report on Form 10-K.

PTC, the PTC logo, The Product Development Company, Pro/ENGINEER, Windchill, Windchill ProjectLink and Windchill PDM Link are trademarks or registered trademarks of Parametric Technology Corporation.

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