In the past few years, parallel manipulators have become increasingly popular in industry, especially, in the field of machine tools. In this paper, a novel 2-degree-of-freedom (DoF) parallel manipulator, which has two translational DoFs, is proposed. It is characterized by the fact that the output of the manipulator is two planar DoFs of a rigid body, while its orientation remains constant. The inverse and forward kinematics can be described in closed form. The velocity equation, singularity, and workspace of the manipulator are presented. In addition the inverse dynamics problem of the device is investigated employing the Lagrange multipliers approach. The dimensional synthesis based on the workspace and conditioning indices is presented. The proposed manipulator can be applied to the field of machine tools or used as the mobile base for a spatial manipulator. The results of the paper are very useful for the design and application of the new manipulator.