3D Systems Corp. Updates Investors on Fourth Quarter; Company Expects Record Revenue for Quarter and Year.

Business Editors

VALENCIA, Calif.--(BUSINESS WIRE)--Jan. 22, 2001

3D Systems Corp. (Nasdaq:TDSC) today announced that fourth-quarter revenue will be at record levels.

Revenues and margins exceeded management expectations in the U.S. and Asia; however, they were below expectations in Europe. Fourth-quarter revenues are expected to be approximately 10 percent higher than the previous year's; however, revenues were below expectations as a result of an unanticipated slowdown late in the quarter in certain European business sectors, including automotive and household appliances, and timing of certain machine sales in Europe.

As a result of the fourth quarter record revenues and strong revenues in the first three quarters of 2000, 3D Systems expects to report record revenues and earnings for 2000. For the three months ended Dec. 31, 2000, earnings per diluted share are anticipated to be approximately $0.18 to $0.20.

The company anticipates continuing to report quarterly growth in revenue and earnings over the prior year's quarter. Revenue growth for 2001 is anticipated to range between 15 and 20 percent, and earnings growth is expected to exceed 20 percent.

"While not satisfied with the results from Europe, we are convinced our strategy is on track," said Brian K. Service, chief executive officer. "We have a strong and profitable business and are continuing to make considerable progress.

"Traditionally, the company does not release yearly results prior to completion of its annual audit; however, it has done so on this occasion to provide shareholders with information on this change in expectations," he added.

The company expects to report final fourth-quarter and annual results on Feb. 21, 2001.

About 3D Systems

3D Systems provides solid imaging products and services that 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 currently offers the ThermoJet(R) office printer and SLA(R) industrial systems, which include proprietary software and materials. Product pricing in the U.S. begins at $49,995 for the company's entry-level printer and extends up to $799,000 for its feature-rich industrial SLA system. These products offer a wide range of applications to a variety of industries.

Based in Valencia, 3D Systems was founded in 1986 and is recognized as the world technology and market leader in solid imaging. For additional information, visit the company's Web site at www.3dsystems.com or phone [phone], ext. 756. For an investor packet, call the company's shareholder communications service at 800/757-1799.

Note to editors: ThermoJet, SLA 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 that could cause actual results to differ from those identified in this news release, including: the availability and acceptance of the company's products, the impact of competitive products and pricing, the timing of shipment of the company's products, its continued dedication of the necessary resources to research and development activities, any continued slowdown in the European economy, general economic conditions and other risks detailed in the company's Securities and Exchange Commission reports including its annual report on Form 10-K for the year ended Dec. 31, 1999, and its quarterly reports on Form 10-Q for the quarters ended March 31, June 30 and Sept. 29, 2000.