When: Wednesday, October 29, 2008 at 8:30 a.m. Eastern Time

Dial-in: 1-888-566-8560 or 1-517-623-4768

Call Leader: Richard Harrison

Passcode: PTC

Webcast: http://www.ptc.com/for/investors.htm

Replay: The audio replay of this event will be archived for public replay until 4:00 pm on November 3, 2008 at 1-866-516-0671 or 1-203-369-2035. To access the replay via webcast, please visit http://www.ptc.com/for/investors.htm.

Important Information About Non-GAAP References

PTC provides non-GAAP supplemental information to its financial results. Non-GAAP revenue excludes the effect of purchase accounting on the fair value of the acquired deferred maintenance revenue balance of CoCreate Software GmbH. Non-GAAP operating margin and EPS also exclude, as applicable, stock-based compensation expense, amortization of acquired intangible assets, acquired in-process research and development expenses, restructuring expenses, non-cash effects of liquidating subsidiaries and the related tax effects of the preceding items and any one-time tax items, such as valuation allowance reversals. PTC provides this non-GAAP information to facilitate period-to-period comparisons of its operational performance by adjusting for certain non-cash and certain episodic expenses. We believe that providing non-GAAP measures affords investors a view of our operating results that may be more easily compared to peer companies. PTC management also uses this and other non-GAAP financial information to evaluate, manage and plan our business because the information provides additional insight into ongoing financial performance. In addition, compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. However, non-GAAP information should not be construed as an alternative to GAAP information as the items excluded from the non-GAAP measures often have a material impact on PTC’s financial results. Therefore, management uses, and investors should use, non-GAAP measures in conjunction with our reported GAAP results. Please refer to the attached tables for a reconciliation between GAAP results and the non-GAAP supplemental information.

About PTC

PTC (Nasdaq: PMTC - News) provides leading product lifecycle management (PLM), content management and dynamic publishing solutions to more than 50,000 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 http://www.ptc.com.

Statements in this news release that are not historical facts, including statements about our confidence that we will achieve our fiscal 2009 financial targets, our expected revenue growth rates, anticipated tax rates, projected revenue and earnings and the impact of our planned strategic investments on our future success, are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. These risks include the possibility that our customers may not continue to spend at recent levels or may elect to defer or forego investment in our solutions in the current economic climate and the possibility that we will experience a shortfall in revenue that causes us to decrease or eliminate planned strategic investments in our business. In addition, our assumptions concerning our future GAAP and non-GAAP effective income tax rates are based on estimates and other factors that could change, including geographic mix of our revenue and profits and loans and cash repatriations from foreign subsidiaries. Other risks and uncertainties that could cause actual results to differ materially from those projected are detailed from time to time in reports we file with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K.

PTC, The Product Development Company, 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 referenced herein are trademarks or registered trademarks of their respective holders.

PARAMETRIC TECHNOLOGY CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
	Three Months Ended						Year Ended
	September 30,			September 30,			September 30,			September 30,
	2008			2007			2008			2007
Revenue:
License	$	98,533		$	96,103		$	316,191		$	296,125
Service		201,014			170,549			754,139			645,154
Total revenue		299,547			266,652			1,070,330			941,279
Costs and expenses:
Cost of license revenue (1)		9,149			4,228			29,255			16,083
Cost of service revenue (1)		79,637			69,872			301,531			274,727
Sales and marketing (1)		83,731			76,521			306,880			292,215
Research and development (1)		47,366			44,416			182,022			162,351
General and administrative (1)		23,176			23,288			87,829			79,777
Amortization of acquired intangible assets		4,327			2,027			15,579			7,467
In-process research and development		--			--			1,887			544
Restructuring charges		4,735			15,347			20,102			15,347
Total costs and expenses		252,121			235,699			945,085			848,511
Operating income		47,426			30,953			125,245			92,768
Other income (expense), net		(500	)		2,496			(6,359	)		6,892
Income before income taxes		46,926			33,449			118,886			99,660
Provision for (benefit from) income taxes		10,422			2,810			39,184			(43,996	)
Net income	$	36,504		$	30,639		$	79,702		$	143,656
Earnings per share:
Basic	$	0.32		$	0.27		$	0.70		$	1.27
Weighted average shares outstanding		113,829			113,104			113,703			112,734
Diluted	$	0.31		$	0.26		$	0.68		$	1.22
Weighted average shares outstanding		118,780			117,702			117,870			117,494

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