Storyboard Presentation – Enabling Tools February 20-21, 2007 / St. Pete’s Beach, FL Jon Ariza, Sopheon Craig Maxwell, Parker Hannifin Parker Hannifin with Sopheon: Focusing on the Strategic Win

Storyboard Presentation – Enabling Tools February 20-21, 2007 / St. Pete’s Beach, FL Parker Hannifin Corporation (client) Presented by Jon Ariza, Sopheon Company Description:  Parker Hannifin Corporation is an $8+ billion diversified manufacturer of motion and control technologies and systems. Parker provides over 800,000 systematic, precision-engineered solutions to a wide variety of commercial, mobile, industrial, and aerospace markets.  In early 2005, Parker introduced its “Win Strategy”, a company-wide initiative designed to increase its top-line revenues by 10% year-over-year, 5% of which would come from organic growth from new products Brief Description of Enabling Tool:  To support this new strategy, Parker chose to implement Stage-Gate® in combination with Sopheon’s Accolade® innovation process governance software  Sopheon is an international provider of software and services that enable organizations to improve their return on investments in innovation and new product development (NPD)  Accolade is a modular software system that provides the strategic decision-making support needed to make critical go / kill decisions and reduce business risk. Accolade is currently being used such diverse innovation leaders as Cadbury Schweppes, BASF, Electrolux, Timex, and Parker Hannifin.  Users of Sopheon’s Accolade solution have reported reducing time-to-market by as much as 30% and increasing revenue from new products by 40%

Storyboard Presentation – Enabling Tools February 20-21, 2007 / St. Pete’s Beach, FL Parker Hannifin Corporation (client) Presented by Jon Ariza, Sopheon Illustration of Your Stage-Gate Process (as shown in Sopheon’s Accolade system): Detailed Description of Enabling Tool:  Parker Hannifin uses the Sopheon Accolade® software system to better govern its product innovation processes throughout the life of its products, from ideation to launch to post-launch reviews  Parker uses Accolade’s Process Modeler and Resource Planning modules to help global cross-functional teams gather input and share information  With Accolade’s Portfolio Management module, Parker’s executive and R&D / project management teams can view key metrics that are captured and reported in a central location so that the progress and viability of all projects are clearly visible throughout the innovation process  Parker uses Accolade’s pre-populated templates and best-practice Stage-Gate® models to structure its product portfolio around the projects that have the greatest strategic and revenue-generating value

Storyboard Presentation – Enabling Tools February 20-21, 2007 / St. Pete’s Beach, FL Parker Hannifin Corporation (client) Presented by Jon Ariza, Sopheon Lessons Learned:  By relying on sales, marketing, and product management to collect data, R&D risks missing essential information on longer-term unarticulated needs and opportunities outside the current business  R&D should take greater ownership of market by involving technologists directly in collection and analysis to ensure the capture of “R&D relevant” information  To be a truly world-class innovator, companies need to invest in a formalized process for measuring innovation AND a software tool that will expedite wide-spread adoption of that process  “With Accolade, we have the ability for the first time to access knowledge that has been trapped in silos and collaborate simultaneously across all operating groups. Our collective know-how will allow us to go to market as ‘one’ Parker—as opposed to the eight separate business groups that we have operated as in the past.” -- Craig Maxwell, Vice President, Technology and Innovation Team:  Sopheon partnered with Parker to create a repeatable process, allowing Parker to do a very economical and successful global implementation  Craig Maxwell, Vice President, Technology and Innovation, Parker Hannifin  Bob McAdoo, Vice President, Business Systems, Parker Hannifin  Raj Gupta, Director, Innovation and Engineering Systems, Parker Hannifin  Gary Erlenbach, Consultant, Fox Solutions  Iain King, Senior Solution Consultant, Sopheon Results:  Improved value analysis led to elimination of half the projects in the pipeline  System implemented by divisions with minimal assistance to 5,000 users across 250 locations  Since deploying Stage-Gate® and Accolade over two years ago, Parker has achieved an organic growth rate of 8% — 60% higher than its goal of 5% (Managing Automation, Oct. 2006)