Schneider Electric Selects PTC to Strengthen Global Product Development Strategy; Longstanding Customer Relationship Extended with 5 Year Contract

Business Wire, Sept 12, 2005

NEEDHAM, Mass. -- PTC (Nasdaq: PMTC), the Product Development Company(TM), today announced that Schneider Electric, the world's Power & Control specialist, has reaffirmed its commitment to PTC by signing a 5-year agreement. Schneider Electric, an existing PTC customer since 1992, has adopted PTC Pro/ENGINEER(R), Windchill(R) and Windchill ProjectLink(TM) as key components of its Global Product Development strategy in order to optimize the company's development process. This contract was finalized in PTC's second quarter fiscal year 2005 and has an approximate aggregate value of 7 million USD. It includes services such as consulting, implementation, adoption, training as well as system maintenance.

Schneider Electric has set ambitious financial objectives and hopes to achieve organic sales growth of more than 5% for 2005-2008. In order to reach this goal, Schneider Electric has launched a new company program. This program is designed to drive growth by boosting innovation, speeding-up the pace of new product launches and developing less cyclical high-growth businesses. This initiative will sustain the new Schneider Electric R&D strategy by optimizing the R&D centers. The program will provide a unified information system that allows each authorized member of the company to easily access designated data and accelerate time-to-market for new products.

PTC's solutions implemented include:

--Pro/ENGINEER Wildfire(TM) for the product evolution, design and validation. This tool leverages the reuse and sharing of the mechanical and electrical design information and optimises the change management processes.

--Windchill ProjectLink for an extensive collaboration both internally and externally with suppliers, partners and customers. This solution enables the extended development team to share project data and ensure collaboration and coherence in a secure environment. It allows teams spread all over the world, including purchasing, engineering, marketing and management, to more effectively collaborate and execute on projects by having easy access to all the latest corporate templates, project files and plant information.

--Windchill Foundation for data management, which facilitates the development of a unified information system across all engineering disciplines, and provides a single source of data for the extended enterprise, helps meet the need of common methods and tools.

These solutions, that work together seamlessly to build a foundation for comprehensive product lifecycle management, are helping Schneider Electric create a global collaboration network for employees, clients, suppliers and manufacturers. In addition to the collaboration features, the flexibility and scalability of PTC's solutions allows Schneider Electric to easily adapt to changing needs.

"Power & Control is a collaboration intensive industry where a company's equipment needs to be reliable and able to seamlessly work with equipment provided by other OEMs," said Marc Diouane, Divisional Vice President, European Sales, PTC. "Schneider has ambitious growth objectives and with PTC's tools the company plans to deliver a complete product development system that enables future innovation and provides a reliable mechanism for Schneider's innovation and business goals."

About Schneider Electric

Schneider Electric is the world's power and control specialist. Through its world-class brands, Merlin Gerin, Square D and Telemecanique, Schneider Electric anticipates and satisfies its customers' requirements in the residential, building, industry and energy and infrastructure markets. With 85,000 employees and operations in 130 countries, Schneider Electric generated sales of EUR 10.4 billion in 2004 through 13,000 distributor outlets. Schneider Electric: Giving the best of the New Electric World to everyone, everywhere, at any time

About PTC Solutions for Electronics & High Tech

PTC solutions for electronics & high tech are designed to meet the product lifecycle management requirements of electronics manufacturers. These solutions include product development process and data management, electronic verification and collaboration, environmental regulatory compliance (RoHS, WEEE, etc.) and 3D mechanical design. PTC has over 3,000 high tech customers, including the top 30 largest electronics manufacturers across the globe.

About PTC

PTC (Nasdaq: PMTC) provides leading product lifecycle management (PLM), content management and enterprise 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. Such risks include the ability of PTC to develop the technologies necessary to deliver an integrated PLM product suite that meet evolving customer requirements and the success of PTC's customer satisfaction initiatives in providing the foundation for long-term relationships and repeat business, as well as those that are detailed from time to time in reports filed by PTC with the U.S. Securities and Exchange Commission, including PTC's most recent reports on Form 10-K and 10-Q. The announcement of any particular selection of PTC products is not necessarily indicative of the timing of recognition of revenue from such order or the level of revenue for any particular period.