Press Releases 3D Systems Solid Imaging

Mary Woods, Public Relations
(661) 295-5600, ext. 2508

VALENCIA, Calif., Nov. 4, 1999 - 3D Systems Corp. (Nasdaq NMS: TDSC) today reported a net loss of $1.0 million, or 9 cents a share, for the third quarter ended October 1, which included a non-recurring charge of $1.2 million, on revenue of $23.9 million.

Without this non-recurring charge, the company would have reported a net loss of $.2 million, or 1 cent a share. Last year, the company reported third quarter net income of $.5 million, or 4 cents a share, on revenue of $23.3 million.

The non-recurring charge included in this year's third quarter is related to the recent change of the company's chief executive officer.

For the first nine months of this year, the company posted a net loss of $7.0 million, or 61 cents a share, on revenue of $68.6 million. This compares to net income of $1.4 million, equal to 12 cents a share, on revenue of $70.9 million a year ago.

Total unit shipments rose almost 40% in the third quarter, compared to the prior year's quarter, as a result of an increase in small-frame solid imaging systems.

"Gross profit margin, while not at the same level as last year, is showing improvement from previous quarters," said Brian Service, president and chief executive officer. "We are encouraged by the growth in large system sales, which are returning to historical levels. In addition, we are seeing an increase in high-margin material sales, and multiple unit sales, which is right in line with our strategy."

"We have also begun implementation of our new strategic operating plan, which has been designed to include manufacturing margin improvements, workforce reductions, and other cost-cutting efforts, which should lead to greater profitability in the coming year."

3D Systems' cash balance remains solid at $10.7 million, relatively unchanged from the previous quarter.

Continued Service, "We are seeing great progress in North American sales, which had been below expectations in previous quarters. We also see improving trends in the marketplace, which bodes well for the company and the solid imaging industry at large."

"Finally, our new management team is now in place to effect positive change within the company and aggressively address the issues at hand. As a result of these many factors, we look forward to finishing out the year in a position of strength."

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 utilize patented stereolithography (SLA) and 3D printing technologies, which fabricate solid objects from digital input. This process offers significant competitive advantages by substantially reducing the time and cost required to design, develop, and manufacture products.

The company also licenses 3D KeltoolŪ, a commercially proven moldmaking solution that produces prototype, bridge, and production tooling inserts.

Based in Valencia, Calif., 3D Systems was founded in 1986 and is recognized as the world technology and market leader in solid imaging. For additional information, phone (888) 337-9786, ext. 720 or visit the company's web site at For investor information, please call 3D Systems' shareholder communications service at (800) 757-1799.

3D Systems and SLA are trademarks, and 3D Keltool and the 3D logo are registered trademarks of 3D Systems.

Except for the historical information contained in this news release, the matters discussed include forward-looking statements that involve risks and uncertainties including: the ability of the company to successfully implement and carry out its new strategic operating plan, and the success of that plan, 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 reports on Form 10-K for the year ended December 31, 1998, and reports on Form 10-Q filed by the company with the SEC during the current fiscal year.

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