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Solidscape Press Release

News Release
For Immediate Release

Contact:
Bruce Lustig
Marketing Manager
(603) 429-9700, Ext. 221
blustig@solid-scape.com

Summary: Federal Court Finds Sanders Design International in Contempt of Preliminary Injunction Barring Sales and Marketing of 20/20 System

June 15, 2004 (Merrimack, NH) - Solidscape, Inc. announced today that on June 14, 2004 the United States District Court for the District of New Hampshire found Sanders Design International, Inc. (“SDI”), Royden C. Sanders, Jr. and Albin Hastbacka (collectively the “defendants”), in contempt of the court's preliminary injunction order, which had been issued February 27, 2004, prohibiting the defendants and their agents from marketing or selling SDI's 20/20 product. The court found that SDI had violated the court's preliminary injunction order by shipping a 20/20 product and “loaning” three 20/20 systems after the effective date of the preliminary injunction. The court ordered: (i) SDI to immediately recall the three loaned systems, (ii) pay a $5,000 sanction to the court and (iii) pay Solidscape's attorney's fees and costs pertaining to the motion for contempt. In addition, the court authorized Solidscape to reduce the amount of the bond Solidscape had to post as a condition of granting the order, by $80,000.

Solidscape had also argued at the hearing that the court should expand the preliminary injunction to include a new product which SDI has recently announced, called Bigfoot, on the grounds that it was sufficiently comparable to the 20/20 as to prohibit its marketing and sale. The court in essence left this issue open for future resolution, noting that although Solidscape had not shown this to be the case during the show cause hearing, Solidscape “was hindered in its efforts at making this demonstration at the show cause hearing because the defendants had not fully completed their discovery. Further the court is sufficiently suspicious of the demonstrated similarities between the 20/20 system and Bigfoot II that the defendants are put on notice that the plaintiffs shall not be precluded from renewing their motion for contempt and sanctions in the event that it is later established that the 20/20 system and the Bigfoot II are essentially the same product.” Solidscape is currently evaluating its options in this regard.

Solidscape had previously filed a complaint in the United States District Court for the District of New Hampshire against the defendants alleging patent infringement, deceptive trade practices, copyright infringement, breach of fiduciary duty, misappropriation of trade secrets, breach of confidential relationship and breach of contract. Solidscape is seeking a permanent injunction against SDI's infringement of its intellectual property as well as compensatory damages, treble damages and attorneys' fees.

Solidscape designs manufactures and sells rapid prototyping and pattern making products for industrial, medical, jewelry, automotive, electronics, aerospace and consumer markets. Solidscape is a privately held company with over 1,000 systems installed worldwide and manufactures the T612™ and T66™ systems in Merrimack, New Hampshire, USA.

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