Two Companies Sign Multi-Year License Agreements

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., March 30, 1998 - 3D Systems Corporation (Nasdaq-NMS:TDSC) reported today that it is expanding deployment of its proprietary 3D Keltool rapid tooling process through a technology licensing program, and has signed its first two licenses, one in the U.S. and one in Europe.

The contracts are valued at a minimum of $1.5 million, including licenses, 3D Keltool materials and equipment, including rapid prototyping systems. Additional fees will be paid over the next four years, if the licensees exercise certain options.

The U.S. licensee is Industrial Molds, Inc., of Rockford, Ill., which plans to establish a division to market molds using 3D Keltool inserts. In Europe an undisclosed manufacturer of electrical switch gear products has licensed 3D Keltool to speed internal product development.

The 3D Keltool process produces durable steel tooling inserts used in plastic injection molding and die casting. Both companies purchased SLA 3500 rapid prototyping systems from 3D Systems to make master patterns used in the 3D Keltool process. In addition, 3D Systems will supply materials, including 3D Keltool metal powders and sintering binders.

"The drive for faster time to market is now turning to the molding process," stated Charles W. Hull, 3D Systems' vice chairman and chief technology officer. "I think the 3D Keltool licensing program and future developments in the technology have enormous implications for the molding industry and for 3D Systems.

"Our near-term priority is to serve well our first 3D Keltool customers and then later in the year take on a selected number of additional accounts as our support capability develops," he added.

Until now, 3D Keltool has been available to mold makers solely as an outsourcing service at its plant in St. Paul, Minn., where it has successfully produced thousands of tooling inserts. Under the new licensing program, 3D Systems will supply rapid prototyping equipment, 3D Keltool materials, training, facility setup, technology and know-how for in-house use of the process.

In addition to its St. Paul plant, which will continue to supply inserts as an outsourcing service, 3D Systems has established a 3D Keltool technical center in Valencia, Calif., for customer training and research and development.

The 3D Keltool Process
In the 3D Keltool process, a part is first designed using a computer-aided design (CAD) system. The CAD's digital input is fed into a 3D Systems prototyping system, which accurately creates a solid master pattern.

The master pattern is then replicated with a steel powder sintering process, capturing the part's geometry to form a steel tooling insert. The insert is then incorporated into a mold assembly and used to manufacture products through plastic injection molding and die casting.

For many intricately detailed parts, the 3D Keltool process can produce durable tooling inserts more quickly and inexpensively than traditional methods using cutting tools and electrical discharge machining (EDM).

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 from digital input, substantially cutting the time and costs of product development. 3D Systems' products are used by a wide range of companies in the automotive, aerospace, medical, electronic and consumer products 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 timely development and acceptance of new products, the impact of competitive products and pricing, and other risks detailed from time to time in the company's SEC reports, including the Form 10-K.