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PARAMETRIC TECHNOLOGY REPORTS 26% INCREASE IN FIRST-QUARTER

 Fiscal 1998 Net Income as Earnings Per Share Rise to
$0.47 
Business Editors 
WALTHAM, Mass.--(BUSINESS WIRE)--Jan. 15, 1998-- 
PTC Achieves Its 39th Consecutive Quarter of Increased 
Revenue and Profits 
Parametric Technology Corporation (NASDAQ:PMTC), developer of the
Pro/ENGINEER(R) family of software tools used to automate mechanical
product development, reported today that its net income for the first
quarter of fiscal 1998, ended January 3, 1998, increased 26 percent
to $62.3 million, compared with $49.5 million for the three months
ended December 28, 1996.  Net income per share (diluted) increased to
$0.47, from $0.37 per share for the same quarter last year.  Revenue
for the first quarter of fiscal 1998 totaled $223.0 million, an
increase of 22 percent (27 percent at constant currency) from last
year's first-quarter revenue of $183.5 million. 
Steven C. Walske, chairman and chief executive officer of
Parametric Technology, stated: "Overall, PTC's products and services
continue to be in demand among both current customers and first-time
buyers.  North America, our most mature market, remains a key
contributor to our growth.  While we saw a strengthening business
climate in Europe, it was partially offset by pockets of weakness in
the Asia/Pacific market.  In the face of a difficult currency
environment and the economic uncertainties affecting much of Asia,
our ability to show not only year-over-year growth but sequential
quarterly growth in our revenue and profits gives us a measure of
satisfaction with our performance this quarter." 
In the first fiscal quarter, Walske noted that Parametric
Technology shipped 7,838 new seats of its Pro/ENGINEER software
products worldwide.  Repeat business from PTC's existing customer
base continued to account for more than 70 percent of the quarter's
license revenue, while the company also added approximately 930 new
customers to its base.  During the quarter significant orders for
software were shipped to Bang & Olufsen, Compaq, Dell,
Harley-Davidson, Honeywell, Lucent Technologies, Mirae Corp., Seiko
Epson, SpeedFam, Stanley Works, Timberjack Group and U.S. Surgical,
among others. 
"As we announced earlier this week, Parametric Technology has
completed its merger with Computervision Corporation," said Walske.
"Going forward, we expect the acquisition to expand our business
presence in the automotive, aerospace and shipbuilding industries.
With the addition of several key Computervision product offerings, we 
also expect to broaden our suite of software solutions and services
to better address the enterprise-wide data management requirements of
larger customers." 
He added, "In the near-term, our challenges include the
successful integration of Computervision's employees, products and
services into our overall operations.  That undertaking must be
balanced against our continuing efforts to rebuild our sales and
support infrastructure in Japan, and to return that region to growth
rates that contribute positively to our objectives for total growth. 
"We remain confident of the overall demand for software
technology and services that help companies deliver their own
products to market more efficiently and productively," said Walske.
"For companies in all industries regardless of geographic region,
bringing high-quality products to market in the shortest possible
time frame remains a critical business requirement -- and one in which
PTC consistently demonstrates significant competitive advantage." 
Parametric Technology Corporation is one of the world's largest
independent software companies and the CAD/CAM/CAE industry's leading
supplier of software tools used to automate the mechanical
development of a product from its conceptual design through
production.  Worldwide, more than 16,000 companies employ PTC's
integrated software technologies to reduce time to market, improve
engineering processes, and optimize product quality.  Parametric
Technology's growth strategy emphasizes technological leadership,
aggressive price/performance, hardware independence, worldwide
distribution, and extensive customer support. 
The consolidated statement of income and condensed consolidated
balance sheet for the first quarter of fiscal 1998 are attached. 
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
include risks and uncertainties that are detailed from time to time
in reports filed by PTC with the Securities and Exchange Commission,
including the company's most recent reports on Form 10-K and 10-Q.
In particular, the Company's future results depend upon, among other
factors, its ability to continue to penetrate the mechanical segment
of the CAD/CAM/CAE industry, to attract and retain skilled personnel,
to deliver timely product enhancements, to execute measures to
strengthen results in Japan, and to integrate the business operations
of Computervision into the Company, as well as upon the strength of
the U.S. dollar in relation to foreign currencies and the Company's
ability to adequately manage its exposure to foreign currency
fluctuations. 
Parametric Technology Corporation and Pro/ENGINEER are registered
trademarks, and all names in the PTC product family as well as the
PTC logo are trademarks, of Parametric Technology Corporation in the
United States and other countries.
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                   PARAMETRIC TECHNOLOGY CORPORATION
                   Consolidated Statement of Income
                 (in thousands, except per share data)
                               (unaudited)


                                             Three months ended
                                          January 3,   December 28,
                                             1998         1996

Revenue:
 License                                   $152,367     $138,442
 Service                                     70,640       45,059

Total revenue                               223,007      183,501

Costs and expenses:
 Cost of revenue                             24,063       17,548
 Sales and marketing                         81,282       71,661
 Research and development                    15,048       12,134
 General and administrative                  11,327        8,705

Total costs and expenses                    131,720      110,048

Operating income                             91,287       73,453


Other income, net                             3,172        2,625

Income before income taxes                   94,459       76,078

Provision for income taxes                   32,116       26,627

Net income                                  $62,343      $49,451

Net income per share - Basic                  $0.49        $0.39

Net income per share - Diluted                $0.47        $0.37

Weighted average number of common
 shares outstanding                         128,047      127,499

Weighted average number of common
 and dilutive common equivalent
 shares outstanding                         131,893      135,439
 
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                 PARAMETRIC TECHNOLOGY CORPORATION
                Condensed Consolidated Balance Sheet
                          (in thousands)


                           January 3, 1998        September 30, 1997
                                         
 ASSETS

 Cash and investments           $607,317                $554,324
 Accounts receivable, net        157,896                 154,777
 Other assets                    142,243                 123,322

   Total assets                 $907,456                $832,423

LIABILITIES AND STOCKHOLDERS' EQUITY

 Total liabilities              $182,734                $187,628
 Stockholders' equity            724,722                 644,795

   Total liabilities and
    stockholders' equity        $907,456                $832,423