According to Sims, these factors, coupled with significantly higher operating expenses, adversely affected first quarter earnings.

"The first quarter witnessed the company's introduction of the state-of-the-art SLA 7000 industrial system, the ThermoJet solid object printer, as well as new software and materials -- exciting elements of 3D's strategic course," he said.

"We supported these new product initiatives through extensive commitment to launch activities and trade show participation. This resulted in about $1.5 million of additional sales and marketing expense in anticipation of future revenues. We expect that sales and marketing expenditures will return to historic lower levels in the second quarter."

With respect to the company's balance sheet, Sims indicated that 3D Systems made a cash payment of $2.0 million during the first quarter for the acquisition of intellectual property rights and pre-paid royalties, both related to solid object printing.

In the first quarter, the company shipped 60 units versus 49 systems delivered in the like-period last year. Product mix in the recently completed quarter trended to lower-price, lower-margin SLA systems, Actuas and ThermoJet solid object printers.

About 3D Systems
3D Systems provides solid imaging products and services that allow users to move quickly from three-dimensional designs to finished parts, at a significantly lower cost and higher quality than more traditional methods. The company's systems, through patented stereolithography and 3D printing technologies, fabricate solid objects from digital input. This process substantially reduces the time and cost of product development, resulting in shorter time to manufacturing and time to market. Based in Valencia, Calif., 3D Systems was founded in 1986, and is recognized as the world leader in solid imaging.

To obtain additional information about 3D Systems products and services, call (888) 337-9786 (toll-free) and request extension 706, or visit the company web site at www.3dsystems.com. For investor information, please call the 3D Systems shareholder communications service at (800) 757-1799.

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, industrywide domestic and international economic conditions, and other risks detailed in the company's Form 10-K for the year ended December 31, 1998, Form 10-Q for 1999's first quarter and other SEC filings.

3D Systems and SLA and are trademarks of 3D Systems.