Press Releases

Parametric Technology to Acquire ICEM Technologies, a Leading Developer of Advanced Surface Modeling Software

Addition of ICEM Technology Now Provides PTC with Industry-Leading Suite of Software Tools for Advanced Surfacing, Industrial Design and Concept Modeling

WALTHAM, Mass., April 27, 1998 -- Parametric Technology Corporation (NASDAQ: PMTC), a leading supplier of software tools used to automate mechanical product development, announced today that it has signed a definitive agreement to purchase ICEM Technologies, a German-based division of Control Data Systems Inc. of Arden Hills, Minn., for up to approximately $45 million in cash. The ICEM Technologies' headquarters is located in Frankfurt, Germany.

The purchase should be completed within 45 days subject to various closing conditions. In connection with the transaction, PTC will record a one-time, non-cash charge against earnings during its current fiscal quarter (ending July 4, 1998) related to the write-off of in-process research and development.

ICEM Technologies is best known for its ICEM Surf advanced surfacing and reverse engineering software tools, which are widely used by body and styling engineers throughout the automotive and aerospace industries. Approximately 10,000 seats (units) of ICEM's various products are used by 1,200 companies worldwide. The division's primary development locations are in Hannover and Braunschwieg, Germany, and there are additional development sites in Toulouse, France as well as Arden Hills, Minn.

"ICEM's best-in-class software tools for advanced surface modeling and reverse engineering are excellent extensions to the PTC product portfolio," said Steven C. Walske, chairman and chief executive officer of Parametric Technology. "ICEM Surf is regarded by many in the industry as the premiere system for the creation and development of Class A surfaces. We expect this technology to significantly enhance our competitive position in automotive body engineering and styling applications. It is also a nice complement to the CDRS surfacing technology that we acquired in 1995, and which today is predominately used by companies for early-stage conceptual design as well as for a wide range of industrial design applications."

He added, "The acquisition is also a good tactical complement to our recently completed merger with Computervision. Similar to Computervision, ICEM has strong relationships with major automotive and aerospace companies throughout Europe. With this acquisition we immediately strengthen our development and consulting resources in the region, which should be perceived very positively by our European customers."

Walske noted that current customers of ICEM's advanced surfacing technology include Audi, BMW, Daimler-Benz, Fiat, Ford, General Motors, Honda, Hyundai, Jaguar, Lear, Lotus, Porsche, PSA-Peugeot, Rover, Toyota, Volvo and Volkswagen.

Parametric Technology Corporation is one of the world's largest independent software companies and a leading supplier of software tools used to automate the mechanical development of a product from its conceptual design through production. Worldwide, nearly 20,000 companies employ PTC's integrated software technologies to reduce time to market, improve engineering processes, and optimize product quality. Parametric Technology's growth strategy emphasizes technological leadership, aggressive price/performance, hardware independence, worldwide distribution, and extensive customer support.

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 ability to anticipate and adequately respond to evolving customer requirements and to deliver products and services in a timely manner that meet those requirements together 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 the PTC's most recent reports on Form 10-K and 10-Q.

Parametric Technology Corporation, Pro/ENGINEER, Pro/MECHANICA, Optegra and CADDS are registered trademarks, and all names in the PTC product family as well as the PTC logo are trademarks of Parametric Technology Corporation, or its subsidiaries, in the United States and in other countries. All other companies and products referenced herein have trademarks or registered trademarks of their respective holders.