Last year's third quarter included approximately $2.6 million in non-recurring expenses for restructuring and write-off of in-process research and development associated with the company's acquisition of assets from EOS GmbH of Germany. Without those charges, the company would have reported a net loss in last year's third quarter of approximately $500,000, or 4 cents a share.

Revenues for the three months ended Sept. 25, 1998 totaled $23.3 million, up from $22.3 million in the third quarter last year.

For the current nine month period, the company posted net income of $1.4 million, equal to 12 cents a share, on record revenues of $70.9 million. This compares with a net loss of approximately $2.0 million, or 18 cents a share, on revenues of $65.6 million in the year-earlier period.

"Our quarterly revenue growth rate was dampened somewhat by the timing of product shipments," said Arthur B. Sims, chairman and chief executive officer. "A number of customers placing orders in the third quarter requested delivery in the fourth. Consequently, backlog climbed substantially, reaching its highest level in six quarters."

Sims reported that the company continues to experience strength from the automotive sector, with one Big Three manufacturer placing an order for three SLA 5000s during the third quarter. Two additional sales of SLA 5000 units to Hitachi and Toyota in Japan were directly influenced by the performance in field trials of a new high temperature resin, he stated.

"This new high temperature resin, currently undergoing market trials in the United States and Japan, substantially exceeds the thermal capabilities of any material we currently offer," Sims disclosed. "We expect this material to be commercially available by year-end.

"We enter the fourth quarter with a strengthened backlog, a solid balance sheet and a sense of cautious optimism." he concluded.

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 Systems' equipment fabricates solid objects using digital input from CAD/CAM/CAE computer systems, substantially reducing the time and costs of bringing new products to market. Major applications include concept modeling, rapid prototyping and rapid tooling for products in a wide range of industries worldwide including automotive, aerospace, medical, electronic and consumer products.

Except for the historical information contained in this news release, the matters discussed include forward-looking statements that involve risks and uncertainties including the availability and acceptance of new products, the impact of competitive products and pricing, the ability of the company to continue to contain expenses, dependence on key personnel, industry-wide domestic and international economic conditions, and other risks detailed in the company's SEC report on Form 10-K for the year ended December 31, 1997.

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.

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