3D, DTM AGREE TO JOIN VALENCIA FIRM LANDS TEXAS CORPORATION.

Byline: Daily News

VALENCIA - 3D Systems Corp. of Valencia announced Tuesday that it has signed a merger agreement with Texas-based DTM Corp., combining two leaders in the high-tech solid imaging industry.

3D Systems will buy all of the outstanding shares of common stock of DTM for $5.80 per share in cash. DTM is valued at $45 million.

Under the agreement, approved by both company's boards, 3D Systems will make an offer for any outstanding shares of DTM common stock once it obtains financing. 3D expects to have financing in place by May 3, and close its stock purchasing offer in June.

After the stock purchase, the two will merge and DTM will become a wholly owned subsidiary of 3D Systems, but will remain headquartered in Austin, Texas.

The offer requires that 3D purchase 67 percent of DTM's outstanding shares of common stock. DTM's chief executive officer and DTM Acquisition Corp., that company's largest shareholder, represent about 49 percent of those outstanding shares and have agreed to sell.

The combined companies had approximately $150 million in revenues in 2000.

John S. Murchison III, president and chief executive officer of DTM, is expected to join the 3D Systems board once the deal closes.

3D Systems provides solid imaging products and services that allow users to ``print'' three-dimensional objects from computer images. The practice is used for models and prototypes and can substantially reduce the time and cost required to design, test and manufacture products. The company's systems utilize patented technologies that create physical objects from digital input.

3D Systems was founded in 1986 and is recognized as a leader in the solid imaging field.

DTM also develops, manufactures and markets advanced rapid prototyping and manufacturing systems.