News release

PTC and HP to Provide Innovative Solutions for Collaborative Product Commerce

Market Leaders to Help Decrease Time-to-Market for Manufacturing Companies and Online Exchanges

NEEDHAM, MA, and PALO ALTO, CA., July 17, 2001

PTC (Nasdaq: PMTC), the product development company, and Hewlett-Packard Company (NYSE: HWP) today announced a business alliance to integrate technology and services to develop, market and sell collaborative product commerce (CPC) solutions for manufacturers. The two companies expect to provide CPC solutions that will enable suppliers, partners, designers and customers from worldwide manufacturing companies and online exchanges to collaborate online to achieve competitive advantage and gain market share.

PTC and HP also announced today the Windchill ProjectLink solution, a CPC product that scales to a wide range of users and price levels and enables collaboration on product design and development across geographic and corporate boundaries. This initial market offering consists of PTC's Windchill ProjectLink software, HP's high-performance UNIX® and NT servers, HP's consulting and system integration services, and standard pre-configured design templates. PTC and HP have integrated their application and IT implementation services to dramatically reduce the time required to create a productive, collaborative design environment.

HP uses PTC's Windchill to help manage its own enterprise product development environment and PTC has certified HP as an Enterprise Consulting Partner. HP intends to leverage its internal practices and processes to provide consulting services that complement PTC's product development solutions. Also, PTC has adopted HP-UX as a product development platform and operating system for its Pro/ENGINEER and Windchill suite of applications. In addition, PTC plans to offer a 64-bit version of Pro/ENGINEER on the HP-UX operating environment.

PTC President and Chief Executive Officer C. Richard Harrison said, "PTC is a leader in product development and we are excited to form a strategic relationship with HP to bring to market scalable solutions that deliver Windchill's benefits to customers. Our relationship embraces innovation that should lead to customer benefits over the long term."

"The Windchill ProjectLink solution, combining PTC software with HP hardware and services, is a great way to build collaborative networks in which suppliers, designers, partners and customers come together on the Internet to create new products and services," said Duane Zitzner, president, HP Computing Systems. "HP and PTC are working together to speed our customers' abilities to deliver high-quality products."

infoAccelerator, a design consulting company from Kalmar, Sweden, placed the first order for Windchill ProjectLink running on HP hardware. The company plans to offer Windchill ProjectLink as a service to help manufacturing companies manage their own design process, track milestones and automatically monitor deliverables through the infoAccelerator portal.

"As a young company, infoAccelerator was thrilled to find a solution with the critical collaboration capabilities of Windchill ProjectLink, coupled with the HP architectures that can scale as our user-base grows," said Neil Hide, vice-president of sales and marketing, infoAccelerator.

About HP

Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services -- is focused on making technology and its benefits accessible to all. HP had total revenue from continuing operations of $48.8 billion in its 2000 fiscal year. Information about HP and its products can be found on the World Wide Web at http://www.hp.com.

About PTC

PTC develops, markets, and supports software solutions that help manufacturers get superior products to market before their competitors. PTC is the world's largest software company with a total commitment to product development. The company services more than 30,000 customers worldwide. Further information on PTC is available at http://www.ptc.com.

PTC, The Product Development Company, Pro/ENGINEER, 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.

HP-UX Release 10.20 and later and HP-UX Release 11.00 and later (in both 32- and 64-bit configurations) on all HP 9000 computers are Open Group UNIX 95 branded products. UNIX is a registered trademark of the Open Group.

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 work effectively across a diversified and expanded international user base to implement and support products and services that meet evolving customer requirements, and to successfully work with third parties to develop, integrate and support technologies that will enable PTC to offer competitive products 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 sales order is not necessarily indicative of the timing of recognition of revenue from such order or the level of revenue for any particular period.

This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause the results of HP and its consolidated subsidiaries to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief and any statement of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include the ability of HP to retain and motivate key employees; the timely development, production and acceptance of products and services and their feature sets; the challenge of managing asset levels, including inventory; the flow of products into third-party distribution channels; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to the annual report on Form 10-K for the year ended Oct. 31, 2000, and subsequently filed reports. HP does not intend to update these forward-looking statements.