Enabling Documents to be Developed Concurrently with Products or

emerging dynamic enterprise publishing market, for $190M in cash With over 1,700 customers worldwide, Arbortextserves key industries including: " Discrete manufacturing " Life sciences " Financial services Developer of associative, XML-based solutions for authoring, document configuration and dynamic publishing Arbortext 9ssolutions deliver highly configured interactive documents that are accurate, relevant, and precisely tailored to the needs of multiple audiences Arbortextis privately held, headquartered in Ann Arbor, MI, with 250 employees in 8 countries; LTM Revenue: $40M With this acquisition, PTC will be uniquely positioned to optimize the development and publishing of critical documents, improving time-to-market, quality, cost and customer satisfaction Transaction Overview " Insurance " Publishing " Government © 2004 PTC 6 PTC Confidential ArbortextFits PTC 9sAcquisition Strategy Financial Fit Should accelerate PTC growth: the DEP market is growing at 25-30% Accretive to earnings in FY06 through cost synergies and withoutrevenue synergies Fairly valued at $190M Strategic Fit Adds value for PTC: " Natural extension of PTC 9sProduct Development System: enables discrete manufacturing customers to manage product content and related documentation from concept through retirement " Expands PTC 9sfootprint into additional industries: will help accelerate growth of PTC 9sexisting software and services Adds value for Arbortext: " Leverages PTC 9sglobal distribution and services channel to enhance Arbortext sales and grow customer support " We can provide Arbortextcustomers with complete solution Transaction Overview © 2004 PTC 7 PTC Confidential Dynamic Enterprise Publishing Definition Create and automatically publish large amounts of configurable information, such as technical manuals, manufacturing instructions, pharmaceutical product information, and software documentation, to multiple audiences, in different languages, in any format, on demand. What is Dynamic Enterprise Publishing?<br><br> IDC predicts the Dynamic Enterprise Publishing market will grow more than 25% annually to over $1 billion in 2009. Source: IDC, February 2005 0 200 400 600 800 1000 1200 20032009 Worldwide Dynamic Enterprise Publishing Software Revenue Revenue ($ millions) 26.9% CAGR © 2004 PTC 8 PTC Confidential Market Drivers for Dynamic Enterprise Publishing Time-to-market pressures Regulatory compliance Globalization Operational efficiency After-market services strategies Configurable products What is Dynamic Enterprise Publishing? © 2004 PTC 9 PTC Confidential ArbortextDelivers Real Value Aerospace -Increased authoring productivity by 400% Heavy Machinery -Existing authoring staff produces 2x as much information Telecom -Reduced content authoring time by 33% by improving output from 2.7 pages/hour to 4.3/hour.<br><br> Manufacturing -Reduced manufacturing time by 50%; previously manufacturing averaged 6 weeks and was bottlenecked by the accompanying documentation Automotive-Increased content reuse by 90% Medical Equipment.-Reduced translation costs by 65%, from $41/page to $14/page Who is Arbortext? © 2004 PTC 10 PTC Confidential Arbortextis a Leading Player in Dynamic Enterprise Publishing Leading enterprise customers 330% of Fortune 500 Record sales 3ongoing success with revenue growth Innovator 3co-inventor of XML, founding member of W3C XML Working Group, participation in numerous industry- specific standards Global presence " Well established in North America and Europe " Building business in Asia-Pacific Who is Arbortext? © 2004 PTC 11 PTC Confidential Engineering specifications User manuals Service guides Product catalogs Training courses Product data sheets Contracts Fact sheets Standard operating procedures Financial & retirement plans Legal publishing Medical reference materials Textbooks Training courses Financial reports Labels Regulatory submissions Manufacturing instructions Pre-clinical reports Clinical reports Product information Legislation & amendments Rules & regulations Budgets Weapons systems Instructions Standard operating procedures Product Development Deliverables Financial Services Publishing Challenges Government Life Sciences Publishing Manufacturing Boeing Deere & Co.<br><br> Toyota American Express Blue Cross Blue Shield of Michigan KBC Bank LexisNexis Reed Elsevier WoltersKluwer GlaxoSmithKline Guidant Pfizer European Union Internal Revenue Service (U.S.) U.S. Air Force © 2004 PTC 12 PTC Confidential How Technical Authoring/Publishing Works Today in Manufacturing Core Engineering DataDownstream Deliverables Mfg Process Regulatory Illustrated Parts List Inspection Repair Service Operation Installation Pro/ENGINEER 3D Models Industry Issue: Inability to broadly leverage CAD data in downstream processes compromises value of CAD technology Root issues: " Lack of integrated data preparation tools " Lack of geometry associativity " Lack of data/change/configuration mgmt Pro/ENGINEER 2D Drawings Pro/ENGINEER NC Toolpaths Discrete Manufacturing Publishing Challenges © 2004 PTC 13 PTC Confidential PTC 9s Product Development System for Manufacturing Visualization & Markup Visualization & Markup (B2B) Project Collaboration (B2B) Project Collaboration Sourcing & Component Mgmt Sourcing & Component Mgmt Software Data Mgmt Software Data Mgmt Enterprise Interoperability Enterprise Interoperability Manufacturing Planning Manufacturing Planning XML Authoring XML Authoring ECAD Data Mgmt ECAD Data Mgmt Enterprise Content & Process Management Enterprise Content & Process Management MCAD Data Mgmt MCAD Data Mgmt MCAD/CAM/CAE MCAD/CAM/CAE Enterprise Publishing Enterprise Publishing PTC + Arbortext= Complete Solution PTC maintains open integrations to 3 rd party sources of product development information © 2004 PTC 14 PTC Confidential PTC 9s Product Development System for New Verticals Visualization & Markup Visualization & Markup (B2B) Project Collaboration (B2B) Project Collaboration Enterprise Interoperability Enterprise Interoperability XML Authoring XML Authoring Enterprise Content & Process Management Enterprise Content & Process Management Enterprise Publishing Enterprise Publishing PTC + Arbortext= Complete Solution PTC will maintain open integrations to 3 rd party information sources, content management systems, and other enterprise applications © 2004 PTC 15 PTC Confidential PTC is Uniquely Positioned to Address Dynamic Enterprise Publishing Traditional publishing is riddled with process inefficiencies Arbortext 9ssolutions revolutionize the way companies deliver critical business information Arbortextis complementary to our existing PDS software and service offerings Arbortextextends the value of PTC 9sPDS PTC extends the value of Arbortextsolutions and is committed to serving all of the industries Arbortexthas served to date PTC 9sstrategy is to remain open and work with a variety of information sources, content management solutions and other enterprise applications The powerful combination of PTC and Arbortextenables the delivery of the industry 9s first turnkey solution for creating, managing, configuring, and publishing information dynamically for a variety of downstream uses Summary Q&A

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