Stategic Partnership

Sopheon PLC
29 June 2000


                          SOPHEON PLC
                               
               STRATEGIC PARTNERSHIP SIGNED WITH
                 PRODUCT DEVELOPMENT INSTITUTE
                               
Sopheon and Teltech partner with Product Development Institute
 to create leading-edge product development process solutions
                               
 Initial efforts to focus on creation of automated Stage-Gate.
                            process
                               

Sopheon   plc   ('Sopheon')  and  Teltech   Resource   Network
Corporation ('Teltech') have today reached agreement with  the
Ontario-based  Product  Development  Institute  ('PDI')  on  a
strategic  partnership that will focus on the development  and
marketing  of  leading-edge solutions  to  strengthen  product
development processes within technology-driven companies.

The  partnership  will focus initially on  applying  Sopheon's
best-of-breed  knowledge  management  software  and  Teltech's
research  and  knowledge management capabilities,  with  PDI's
unmatched process understanding to create an automated product
development solution that can guide new product activity  from
inception  to  launch.  The solution will be  based  on  PDI's
world-renowned Stage-Gate process, which is presently used  in
some  form  by an estimated 70% of technology-driven companies
in  North America.  The attractiveness of the planned offering
to  current  Stage-Gate  users is that  it  will  convert  the
process  from  paper to computer, enabling more efficient  and
consistent implementation and critical knowledge transfer that
will  drive  products to market more quickly and  effectively.
For  companies  without  an  established  product  development
process,  the Sopheon/Teltech/PDI offering will constitute  an
easily adoptable turnkey solution.

'An  estimated  46% of the resources spent on the  development
and  launch  of  new products is squandered on  products  that
either  never  make  it to market or fail upon  arrival'  said
Teltech  President  and  CEO,  Andy  Michuda.   'Sopheon   and
Teltech's goal in partnering with PDI is to develop a complete
integrated  set of tools, research capabilities  and  software
solutions  that  will  serve as the backbone  of  a  company's
product development process and dramatically boost new product
success rates.'

'This strategic relationship between Sopheon, Teltech and  PDI
is  important for a number of reasons,' said Sopheon Chairman,
Barry  Mence,  'Certainly  we're  excited  by  the  tremendous
business opportunity this relationship represents.  But it  is
also  a  telling illustration of the potential  power  of  the
synergy  between Sopheon's knowledge management  technology  and
Teltech's research and knowledge management competencies  that
bodes well for the proposed integration of our companies.'
                                           

For further information, please contact :

Barry Mence, Chairman 
([e-mail])                 [phone]
Richard Maddocks,  Managing Director
([e-mail])            [phone]
Arif Karimjee, Finance Director
([e-mail])               [phone]
Steve Liebmann at Buchanan Communications
([e-mail])                  [phone]



Background   on   PDI  principals  who  will  participate   in
developing  the Sopheon / Teltech product development  service
offering

Dr  Robert Cooper is a world-class expert in the field of  new
product  management.   He has been called 'the  quintessential
scholar'  in  product development by the  Journal  of  Product
Innovation  Management and 'one of the pre-eminent experts  on
new  product  development' by Industrial Marketing  Management
magazine.   He  is  a  professor of industrial  marketing  and
technology management at McMaster University in Ontario.

Dr  Cooper  is  considered the father of Stage-Gate.  process,
widely  used  by leading firms around the world to  drive  new
products  to  market.  He has published more that 75  articles
and  four books on new products, including the popular Winning
at  New  Products:   Accelerating the  Process  from  Idea  to
Launch, now in its 10th printing.

Dr Scott Edgett is an internationally recognised expert in the
field of new product development and portfolio management.  He
is  a professor of marketing at McMaster University in Ontario
and  director of the Product Development Institute.  Dr Edgett
has  expertise  in researching the factors that determine  the
success   of  new  products,  and  has  consulted  to  leading
companies  seeking to improve their new product processes  and
approaches  to  portfolio management.  He has  published  more
than  40  articles and papers, including his 'best  practices'
series.

About Sopheon

Sopheon  is  a  supplier of knowledge management software  and
services.   Its  shares  are  quoted  on  the  UK  Alternative
Investment  Market  ('AIM') and on the Euro.NM  in  Amsterdam.
Sopheon has operational headquarters in Guildford, UK, and has
offices  in  the  Netherlands and  the  USA.   Information  on
Sopheon's products is available on : www.sopheon.com.