Merrimack, NH, May 3, 2011 — Solidscape®, Inc., manufacturer of high-precision 3D printers, announced today the terms of its sale to Minneapolis-based Stratasys, Inc. (NASDAQ: SSYS) also a manufacturer of 3D printers and other additive manufacturing systems. Stratasys acquired Solidscape, Inc. for $38 million plus certain purchase price adjustments.
Stratasys has been the overall additive manufacturing unit sales leader for eight consecutive years. Stratasys created the process called Fused Deposition Modeling (FDM®) which has grown into the most widely used additive manufacturing process, with roughly 35% of the global installation base.

Solidscape is widely recognized as the leader of high-precision 3D printers for lost-wax-investment casting applications that require superior accuracy, ultra-fine feature detail and a smooth surface finish. The company sells into several markets and holds a dominant competitive position within the jewelry design and manufacturing industry.

“Stratasys is regarded as one of the best-run, most stable companies in the additive manufacturing industry,” says Solidscape Chairman David Bothwell. “The company brings a wealth of resources to the table with its financial strength and its management team. The resources of a strong company like Stratasys give Solidscape a better platform on which to grow our business.”

Solidscape’s products are sought after because they are able to produce prototypes with a high level of geometrical intricacy, surface finish and castability. Stratasys FDM machines are chosen for their ability to produce close-tolerance parts that are stable and strong.

“Solidscape is a profitable company with an excellent reputation in the markets it serves,” says Stratasys CEO Scott Crump. “The company’s products are ideal for the manufacture of small parts that require high precision and exhibit intricate detail. Our combined range of strengths will enable us to better compete for any market opportunity. We see great synergy between our two companies.”

Solidscape, Inc., Merrimack, NH, is the leader in high-precision 3D printers, materials and software for rapid prototyping and manufacturing, able to print solid models designed in CAD. Solidscape systems incorporate innovative printing technology and material properties that advance the state-of-the-art in computer-controlled fabrication of master patterns, by providing the highest standards in surface finish, accuracy and material castability. Solidscape systems are ideal for lost wax investment casting and mold making applications such as fine jewelry, dental restorations, turbine blades, biomedical products, orthopedics, consumer goods, electronics and many other high-precision products. Online at: www.solid-scape.com

Stratasys, Inc., Minneapolis, MN, is a maker of additive manufacturing machines for prototyping and producing plastic parts. The company markets under the brands Fortus 3D Production Systems and Dimension 3D Printers. The company also operates RedEye On Demand, a digital manufacturing service for prototypes and production parts. According to Wohlers Report 2010, Stratasys supplied more additive manufacturing systems in 2009 than any other manufacturer, making it the unit market leader for the eighth consecutive year. Stratasys patented and owns the process known as FDM®. The process creates functional prototypes and manufactured goods directly from any 3D CAD program, using high-performance industrial thermoplastics. The company holds more than 285 granted or pending additive manufacturing patents globally. Stratasys products are used in the aerospace, defense, automotive, medical, business & industrial equipment, education, architecture, and consumer-product industries. Online at: www.stratasys.com

Forward-Looking Statements
All statements herein that are not historical facts or that include such words as “expects,” “anticipates,” “projects,” “estimates,” “vision,” “could,” “potential,” “planning”, “intends”, “desires” or “believes” or similar words constitute forward-looking statements covered by the safe harbor protection of the Private Securities Litigation Reform Act of 1995. Except for the historical information herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties. These include statements regarding projected revenue and income in future quarters; the size of the 3D printing market; our objectives for the marketing and sale of our Dimension® and uPrint® 3D Printers; our WaveWash™ support removal system; and our Fortus® 3D Production Systems, particularly for use in direct digital manufacturing (DDM); the demand for our proprietary consumables; the expansion of our paid parts service; and our beliefs with respect to the growth in the demand for our products. Other risks and uncertainties that may affect our business include our ability to penetrate the 3D printing market; the success of our distribution agreement with HP; our ability to achieve the growth rates experienced in preceding quarters; our ability to introduce, produce and market consumable materials, and the market acceptance of these materials; the impact of competitive products and pricing; our timely development of new products and materials and market acceptance of those products and materials; the success of our recent R&D initiative to expand the DDM capabilities of our core FDM technology; and the success of our RedEyeOnDemandTM and other paid parts services. They also include statements about future financial and operating results of our company after the acquisition of Solidscape and anticipated benefits of the acquisition. Actual results may differ from those expressed or implied in our forward-looking statements Such forward-looking statements involve and are subject to certain risks and uncertainties, which may cause our actual results to differ materially from those discussed in a forward-looking statement. Such risk factors include our ability to successfully integrate and market Solidscape products, our ability to retain Solidscape management and our ability to protect and defend Solidscape intellectual property. These statements represent beliefs and expectations only as of the date they were made. We may elect to update forward-looking statements, but we expressly disclaim any obligation to do so, even if our beliefs and expectations change. In addition to the statements described above, such forward-looking statements are subject to the risks and uncertainties described more fully in our current report on Form 8-K filed in connection with the completion of our acquisition of Solidscape and in our reports filed or to be filed with the Securities and Exchange Commission, including our annual reports on Form 10-K and quarterly reports on Form 10-Q.

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Drop-on-Demand (DoD) is a trademark and Solidscape is a registered trademark of Solidscape, Inc. Stratasys, Fortus, Dimension and RedEye are registered trademarks of Stratasys Inc.