VW Group Expands PTC Windchill Into AUDI And International Powertrain Divisions

NEEDHAM, Mass.—(BUSINESS WIRE)—March 20, 2006— PTC (Nasdaq: PMTC), the Product Development Company(TM), today announced that the Volkswagen Group, one of the world's leading automobile manufacturers, has expanded its deployment of PTC solutions into all powertrain divisions across the Volkswagen Group to enable global standards for integrated product creation processes within the different brands. Volkswagen expects Windchill to drive substantial improvements in real-time monitoring and documentation of projects. The PTC solutions will be used by more than 3,000 Volkswagen Group employees around the world who will work on a single integral platform for visualization, content and process management, both within the engineering department and throughout the extended enterprise.

"Using PTC solutions to connect design, prototyping and testing within a single product development system, we expect to improve our overall product quality," says Dr. Frank Metzner, Head of Powertrain-Module-Management, Volkswagen AG. "Furthermore, we will be able to automate our development processes and monitor projects in real-time which will lead to shorter cycle times."

The Windchill deployment is an expansion of Volkswagen's current use of the PTC Product Development System, which includes Pro/ENGINEER(R) for 3D design, ProductView(TM) for visualization and Windchill for content and process management and collaboration. The roll-out starts simultaneously within AUDI and at Volkswagen followed by Skoda in the Czech Republic and the Americas Region of Volkswagen and further international brands like Seat and Lamborghini. Since the end of 2005, PTC's Windchill has been used by more than 1,200 employees of the Volkswagen and AUDI brands.

"The global deployment of PTC solutions is strategically important for us to improve the leverage of existing knowledge and information in the powertrain process in our subsidiaries all over the world," said Dr. Trac Tang, Group PIO Product Process of Volkswagen AG.

"Our Product Development System is the industry's most powerful and flexible PLM solution. It allows customers to effectively optimize the content creation process, content and process management, and collaboration throughout the value chain," said C. Richard Harrison, president and chief executive officer of PTC. "Volkswagen's continuing commitment to our Product Development System demonstrates how valuable it is for the automotive industry with its constant pressures to launch innovative products in shorter cycle times with lower costs."

Volkswagen Group has been a PTC customer since 1995. Pro/ENGINEER is being used for the complete development process on the powertrain, gearbox and partially suspension, from concept to manufacturing by more than 700 users across globally dispersed locations. In addition, the Group has deployed 2,000 ProductView seats across various divisions so that both CAD and non-CAD users can concurrently visualize all developed automotive sub-assemblies, like engines, gearboxes, car body parts and electronic components. All visualization data is stored in a central repository, so that all Volkswagen and AUDI suppliers can easily access this information in the course of their development activities.

About Volkswagen Group

The Volkswagen Group with its headquarters in Wolfsburg, Germany, is one of the world's leading automobile manufacturers and the largest carmaker in Europe with more than 343,000 employees. The Group operates 47 production plants in eleven European countries and a further seven countries in the Americas, Asia and Africa. Group sales rose in 2004 to 88.9 billion (2003: 84.8 billion). The Group's passenger car business is divided into two brand groups - the AUDI and Volkswagen brands. The AUDI brand group comprises the Audi, SEAT and Lamborghini brands. The Volkswagen brand group is made up of the Volkswagen Passenger Cars, Skoda, Bentley and Bugatti brands.

About PTC Solutions for the Automotive Industry

PTC solutions for automotive are designed to meet the product design and product life cycle management needs of both OEMs and suppliers in the automotive industry. PTC provides 3D design, product data management and collaboration solutions to over 1400 automotive manufacturers including 8 of the top ten suppliers and 3 of the top 5 OEMs.

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 successful development and integration of the technologies necessary to offer integrated PLM solutions that address the evolving product lifecycle management functions for the automotive industry and is deployable across the extended supply and customer chains, the ability of PTC to successfully partner and effectively coordinate and manage joint activities (including sales, marketing, implementation and support) with third parties in order to efficiently and cost effectively deliver products and services that meet customer requirements, and the success of PTC's customer satisfaction initiatives in providing the foundation for long-term relationships and repeat business, 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 PTC's most recent reports on Form 10-K and 10-Q. The announcement of any particular deployment of PTC products is not necessarily indicative of the timing of recognition of revenue therefrom or the level of revenue for any particular period.

PTC, The Product Development Company, Pro/ENGINEER, ProductView, Wildfire, Windchill, and all PTC product names and logos are trademarks or registered trademarks of Parametric Technology Corporation or its subsidiaries in the United States and in other countries.

Nicole Rowe, 781-370-6369
Corporate Communications Europe

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Weber Shandwick
Amanda Keane, 617-520-7260

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