Contact:
Mary Woods, Public Relations Mgr.
3D Systems
26081 Avenue Hall
Valencia, CA 91355
ph: (661) 295-5600 ext. 2508
fx: (661) 295-3404
email: woodsm@3dsystems.com

VALENCIA, Calif., February 24, 1998 - 3D Systems Corporation (Nasdaq-NNM:TDSC) today reported record revenues of $24.7 million for the fourth quarter 1997, an increase of 12 percent from $22.1 million in the comparable period one year ago.

During the quarter, the company incurred one-time charges approximating $2.1 million related primarily to inventory adjustments and restructuring of its European operations.

After providing for these items, 3D Systems posted a net loss of $2.6 million, equal to $.22 a share, for the three months ended Dec. 31, 1997. This compares with net income of $1.7 million, or $.14 a share, a year ago. For the year ended Dec. 31, 1997, revenues totaled a record $90.3 million, an increase of 13 percent from $79.6 million a year ago. The company posted a net loss of $4.6 million, or $.40 per share, in the most recent year. This compares with 1996 net income of $4.6 million, equal to $.39 per share.

In commenting on the quarter and year's performance, Arthur B. Sims, chairman and chief executive officer, cited three primary factors that depressed the company's results.

"Softness in domestic sales was a serious drag on top line growth, although our international business grew 48 per cent in 1997.

"In Europe, restructuring charges and other operating expense increases added to our losses in the fourth quarter.

"Finally, we made significant inventory adjustments in the second half, necessitated by a number of factors, including obsolescence created in the wake of our aggressive rollout of new products in 1997." Sims added that "domestic sales now appear to be recovering, we have begun corrective actions to improve our European performance, and we believe that the inventory issues are now well behind us."

New Senior Executive Appointed in Europe
Sims announced the appointment of Robert Baumgartner to head European sales and the resignation of Eugen J. Geyer, the company's vice president of European operations, to pursue other interests. Baumgartner was most recently director of sales and marketing for Geschrer GmbH, a subsidiary of Victoreen Inc. USA, a company specializing in measurement systems. Previously, he was general manager of MAB GmbH, a wholly owned subsidiary of BMW.

Sales Productivity Increasing
"Orders flow and sales productivity have been increasing, and the backlog for our SLA rapid prototyping systems, while down substantially from last year's end, increased in both the third and fourth quarters," Sims said. "The U.S. sales team, particularly, showed progress during the second half of the year and their volume of bookings in the early weeks of 1998 is encouraging."

Record Units Shipped
He reported that the company shipped 274 rapid prototyping units in 1997, of which 113 were the new Actua 2100 office systems. In 1996, the company shipped 157 units, six of which were Actua 2100's in the fourth quarter when the product was first introduced.

In 1997's fourth quarter, the company shipped 85 units, of which 40 were Actua 2100 office systems, compared with 48 units in the same quarter a year ago. Actua shipments in 1997's fourth quarter included 14 units that had previously been placed on hold awaiting European CE certification.

New Millennium Product Line Well Received
Sims reported that the company's new Millennium Series rapid prototyping systems, introduced late in the third quarter, is being well received across a wide range of industries. "All of the Big Three automobile companies have ordered units," he reported, "as have several auto companies in Europe and Asia. One U.S. car manufacturer ordered three of the advanced-technology SLA 5000's for shipment in this year's first quarter."

Sims indicated that the company's financial condition remains strong. At year end, 3D Systems' current ratio stands at 3:1 and current assets include $16.2 million in cash and equivalents.

3D Systems manufactures rapid product development systems that enable users to move from concept models to finished parts faster, at lower cost, and at higher quality than traditional methods. 3D's equipment fabricates solid objects using input from CAD/CAM/CAE computer systems. Major applications include concept modeling, rapid prototyping and rapid tooling for products in a wide range of industries including automotive, aerospace, medical, electronic and consumer product industries.

Except for the historical information contained in this news release, the matters discussed are forward-looking statements that involve risks and uncertainties, such as the ability of the company to contain expenses attributable to its European operations, the impact of competitive products and pricing, and other risks detailed in the company's Form 10-K.

For current investor information, please call 3D Systems' shareholder communications service at 800-757-1799. 3D Systems and SLA are trademarks of 3D Systems, Inc.