With the toy industry being so fierce and attempting to keep in touch with the trends of today's kids, K'NEX turned to PTC's Pro/ENGINEER. ``To stay current with the interest of kid's, we had to compress our product development cycle in order to bring our new products to the market faster,'' said Glenn Giddings, Design Manager for K'NEX Industries. ``Since using Pro/ENGINEER, we have been able to reduce our time to market by 75% as well as reducing our development cost by 50%. This gives us a significant competitive advantage over others in the toy market.''

``K'NEX's need to bring the creative design together with a cohesive production process, is right where we fit in. Our goal is to provide that glue, to allow a manufacturer to deliver their products to market faster by eliminating repetitive steps behind the scenes,'' said Barry Cohen, executive vice president of marketing at PTC. ``We enjoy working with customers like K'NEX who understand and fully embrace the innovations we can provide them that enhance their overall business goals.''

PTC's Pro/ENGINEER has enabled K'NEX to ``break out of the box'' of rigid and rectilinear assemblies found in earlier design. They have begun to use parts and product features that are much more difficult to define. Pro/ENGINEER has given K'NEX the ability to design with variable section sweeps for flexible rods with complex cross sections, torroidal bends for complex and detailed tire tread patterns, and blends, meaning model designs are no longer limited by the rigid angles once inherent in the design of the basic components.

``We chose Pro/ENGINEER because it is fully customizable to our specific needs and the parametric nature allows seamless integration of any part changes into our full model assemblies,'' said Giddings. ``Speed and simplicity are essential - for example, we can now call up any part in just three keystrokes or assemble two parts together with just two clicks of a mouse. Instead of two days of assembly, we can now achieve the same results in hours!''

The PTC i-Series of flexible engineering solutions, based on PTC's award winning Pro/ENGINEER software and the practices of PTC Global Services, is a group of design and engineering solutions focused at addressing collaborative product commerce engineering initiatives. These solutions, including specific capabilities for the plastics molding industry, are relied on daily by more than 250,000 users to drive their worldwide product development and engineering functions. The solutions use unique approaches with many patent- pending and award-winning technologies such as Pro/ENGINEER behavioral modeling that captures engineering knowledge and allows designers to innovate new products more rapidly and effectively. The PTC i-Series of flexible engineering solutions, underpinned by PTC's Windchill software, also features Pro/MECHANICA, DIVISION, Pro/DESKTOP, ICEM, CDRS, InPart, CADDS 5i, and MEDUSA.

PTC, founded in 1985 and headquartered in Waltham, Mass., USA (Parametric Technology Corporation), develops, markets, and supports collaborative product commerce (CPC) solutions that help manufacturing companies shape innovation and achieve sustainable competitive advantage in the Internet age. These B2B e-commerce solutions employ powerful Web-based collaboration and flexible engineering technologies to streamline product development and delivery processes. PTC's software solutions are complemented by the strength and experience of PTC Global Services, which provides training, consulting, support, and e-commerce services to customers worldwide. With PTC's CPC solutions, manufacturers can take advantage of the Internet to improve product quality, reduce costs, and shorten time-to-market cycles. PTC can be reached at 781-398-5000, or via the Web at http://www.ptc.com.

Founded in 1996, K'NEX Industries, Inc. is a privately held company, with the headquarters and manufacturing facility located in Hatfield, Pennsylvania. Internationally, K'NEX products are distributed by Hasbro, one of the world's leading toy manufacturers and distributors.

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 anticipate and adequately respond to evolving customer requirements and to successfully develop, integrate and support the technology necessary to deliver products and services that meet those requirements 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, Pro/ENGINEER, Windchill, Pro/MECHANICA, DIVISION, Pro/DESKTOP, ICEM, CDRS, InPart, CADDS, MEDUSA, 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. Names of products from other vendors mentioned in this document may be trademarks or registered trademarks of their respective owners.

[Posted 10/23/2000]