KTM Drives Product Development Strategy With PTC System

NEEDHAM, Mass.—(BUSINESS WIRE)—May 2, 2007— PTC (Nasdaq: PMTC), the Product Development Company(TM), today announced that KTM Sportmotorcycle AG, headquartered in Mattighofen (Austria), has selected the PTC(R) Product Development System (PDS) to support its growth strategy which is being driven by highly innovative products. The championship winning manufacturer of off-road motorcycles is expanding its use of PTC solutions to encompass Windchill, the PTC content and process management solution. The strategic move to an integral PDS will enable KTM to optimize their product development process and thereby accelerate the pace of innovation, reduce time-to-market and allow additional focus on new market segments.

Since the 1970s KTM has successfully specialized in leading-edge sports motorbikes, winning numerous world championships in motor cross and enduro competitions as well as in grueling desert rallies such as the Rally Dakar. The company has a long pedigree of innovation: leading the market in the introduction of disc brakes, upside-down forks and progressive link rear suspension in off-road chassis design. With its revolutionary LC4 family of four-stroke engines KTM helped break the dominance of two-stroke engines in off-road competitions that had lasted more than two decades.

KTM has used PTC Pro/ENGINEER as its standard 3D CAD/CAM/CAE software for the entire product design since 1999, enabling the rapid transfer of innovative ideas into successful products. This speed of innovation has been key to KTM's growth rates, which have often exceeded 15% annually - e.g. culminating in 84,000 units sold in 2006. The expansion of KTM's product portfolio into road-going sports bikes and new markets including Quad vehicles and the revolutionary concept sports car "X-Bow" (poised for introduction in 2008), are further planned milestones in KTM's growth path.

To ensure innovation and product quality for the extended product portfolio, KTM partners with companies such as the Italian race car manufacturer Dallara for carbon chassis manufacturing or Audi for engine and power trains. To better manage its product development processes, KTM required a Web-based single architecture that could enable product collaboration and project management in a secure environment. Building on its long and successful partnership with PTC and following an exhaustive evaluation process, KTM decided to complement its engineering infrastructure with PTC Windchill. The project is being implemented by PTC Global Services, who is responsible for all aspects of the deployment including business process consulting, solution architecture design, project management, implementation, training and rollout.

"KTM is committed to delivering sports motorcycles that offer our customers competitive advantage on the racetrack," said Harald Ploeckinger, Member of the Management Board KTM Sportmotorcycle AG. "Our 'Ready to Race' philosophy requires leading-edge technology with rapid response to change and precise execution. The PTC Product Development System addresses our need to complement innovation with structured processes in an integral IT environment."

"The pace of innovation in automotive markets requires a PLM solution that is easy to deploy and easy to use, but doesn't sacrifice on power when it comes to content and process management capabilities," said Martin Walters, director, automotive market strategy, PTC. "Because our integral PDS provides the right mix of power and ease, it is increasingly being adopted by leading manufacturing companies as their PLM backbone to help realize an efficient management of product development processes, information, timelines and costs."

About KTM Sportmotorcycle AG

KTM was founded in 1934 and started producing motorcycles in 1953. Throughout KTM's history, the company has been on the leading edge of motorcycle technology. Under the tag line "Ready to Race" KTM manufactures a comprehensive Range of sports motorcycles, predominantly for off-road use. In addition the company for the first time in its history will launch a car - X-Bow based on an Audi engine and a Dallara sourced chassis. For more information please go to www.ktm.com.

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 1,400 automotive manufacturers including eight of the top 10 suppliers and three of the top five 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 Midcap 400 and Russell 2000 indices. For more information on PTC, please visit www.ptc.com

Statements in this news release that are not historical facts, including statements about our confidence and strategies and our expectations about revenue, results of operations, market growth and market acceptance of our products, are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. Those risks and uncertainties include the following: we may be unable to successfully attract and enter into relationships with strategic performance partners and thereafter effectively coordinate and manage sales, marketing and customer facing activities with these third parties in order to help prospective customers understand the benefits of our product development system, including interoperability, quality, return on investment and value creation, 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.

PTC, The Product Development Company, Windchill, Arbortext, Mathcad, IsoDraw, and all other 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. All other companies and products referenced herein have trademarks or registered trademarks of their respective holders.


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