EXHIBIT 99.1                                              FOR IMMEDIATE RELEASE
 
 Contact:
     John W. Hudson
     Parametric Technology Corp.
     (617) 398-5000
 
          PARAMETRIC TECHNOLOGY CORPORATION ACQUIRES OBJECT-ORIENTED
            SOFTWARE TECHNOLOGY FOR PROJECT MODELING AND MANAGEMENT
 
  WALTHAM, Mass., July 11, 1996--Parametric Technology Corporation (NASDAQ:
PMTC), developer of the Pro/ENGINEER(R) family of software tools used to
automate mechanical product development, announced today that it has acquired
project modeling and management software technology from Greenshire License
Co. for approximately $30 million. Specific terms were not disclosed. The
acquisition will be accounted for as a purchase and the company will record a
non-recurring charge during its current fiscal quarter (which ends September
30, 1996) for substantially all of the purchase price.
 
  The acquired software technology, called Reflex, is a three-dimensional
(3D), object-oriented modeling and management system that enables designers to
use objects, created and stored in library databases, to design, visualize,
manage and operate various types of large engineering projects.
 
  According to Steven C. Walske, chairman and chief executive officer of
Parametric Technology: "Consistent with our own flagship product,
Pro/ENGINEER, the Reflex software represents very interesting, leading-edge
technology with a great deal of potential for transforming the way engineers,
designers and architects work. At present, however, this is raw technology,
and we anticipate that it will require additional development effort by PTC
before we have applications that are commercially viable."
 
  Walske noted that the Reflex software has generated no meaningful revenue to
date, and that any revenue generated from the acquired technology would be
immaterial during Parametric's first year of ownership. There should be no
dilutive impact from the acquisition or its follow-on development and start-up
activities, he added.
 
  "While the acquisition has no near-term impact on our business operations or
growth prospects, we believe that it should--over time--expand the size of the
market opportunity that Parametric Technology is addressing," said Walske. "We
view that aspect of this acquisition very positively."
 
  Jonathan Ingram and Gerard Gartside are the co-founders and principal
developers of the Reflex software. According to Ingram, "We knew we had some
pretty exciting core technology on our hands, but we also knew that we needed
the leverage of Parametric's technical and marketing resources if we were ever
going to make significant inroads in the marketplace. With Parametric behind
this technology, we believe that the software has an opportunity to one day
set new standards for project modeling and design."
 
  At present, the Reflex software consists of three components--the core
technology or "object engine"; various libraries of standard elements for
automating the design process; and a library development language, which is a
tool for developing applications on top of the core architecture. The Reflex
modeler comprises functionality for fully coordinating project modeling,
including 2D drafting, 3D modeling, drawing production, inherent coordination,
fully dynamic model movement in all views, element creation, interference or
clash detection, and various data exchange capabilities. The core modeler is
complemented by rendering and visualization software.
 
  Walske estimated that it will take at least six months to complete the
development of a 1.0 release of the software. The development program includes
plans for a new user interface; support for multiple platforms and operating
systems; and development of applications for selected vertical markets.
 
                                    -MORE-
 
                                       1

 
PARAMETRIC TECHNOLOGY ACQUIRES NEW SOFTWARE TECHNOLOGY--PAGE 2
 
  Walske noted that the Reflex technology is differentiated from other project
modeling systems by its "intelligent" parametric elements which can provide
Pro/ENGINEER-like associativity, so that changes to the specifications of a
project result in all relevant elements of the model and the related drawings
and schedules being instantly updated. He also noted that while Reflex
represents raw technology by Parametric's standards, there are several large
architectural and engineering firms currently using customized early versions
of the software to manage large projects.
 
  "The ability to track, manage and instantly update the vast amounts of data
generated by a large engineering project should be applicable and beneficial
to a wide spectrum of applications throughout the AEC (architectural,
engineering and construction) market," said Walske. "The technology is also
scaleable in that its productivity-enhancing benefits should be as valuable to
a small engineering project as to a large-scale project that encompasses
multiple companies and multiple disciplines."
 
  He added, "Our initial focus with this technology will be on higher end
applications that permit us to leverage our large and very successful direct
sales organization. From there, we can evaluate the marketplace's interest in
and reaction to this technology, and allow that feedback to guide future
technical direction."
 
  Parametric Technology Corporation is 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 its release into manufacturing.
Worldwide, more than 10,500 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.
 
  Except for the historical information contained herein, some matters
discussed in this news release constitute forward-looking statements that
involve risks and uncertainties that could cause actual results to differ
materially from those projected. These include the company's ability to
integrate the acquired technology successfully, retain key personnel
associated with the acquisition, develop new products in a timely manner, as
well as other 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 report on Form 10-Q for the quarter ended March 30, 1996.
 
                                  * * * * * *
 
  Pro/ENGINEER is a registered trademark of Parametric Technology Corporation.
 
                                       2