3D MAINTAINS NASDAQ LISTING DESPITE AUDIT.

Byline: Daily News

VALENCIA - Valencia-based 3D Systems Corp. announced Monday that Nasdaq would continue listing the company's securities on the Nasdaq National Market.

The determination was made under an exception that requires the company to file its 2002 year-end report and any amended financial statements by June 30, and to file its first-quarter 2003 report by July 14.

The company was at risk of losing its listing after accounting irregularities came to light earlier this year. Questions surfaced over whether $3 million in revenue counted for 2002, as it had been reported to investors, or for 2003. The latter proved true, according to the results of an investigation conducted by a board of directors audit committee.

Recalculated figures showed 2002 revenue below profitability and in default of bank loans. In the end, the company's president and chief operating officer, Grant Flaharty, stepped down; financial officer James Selzer was ousted; and other employees were disciplined.

The company is putting things back in order and completing its annual report, said Chief Executive Officer Brian K. Service.

``We are very pleased with the Nasdaq determination, and we are working expeditiously to complete the filings within these time periods,'' Service said in a statement.

Founded in 1986, 3D Systems manufactures systems that create physical objects from computer input that can be used in design communication, prototyping and end-use products.