Dimension 3D Printing Group Accounts for More Than 50 percent of 2006 3D Printer Sales, According to Industry Report.

Wohlers Report 2007 shows Dimension expands its market share in 2006

MINNEAPOLIS -- The Dimension 3D Printing Group, a business unit of Stratasys, Inc. (Nasdaq:SSYS), today announced that is has expanded its market share of the 3D printing industry, accounting for more than 50 percent of 3D printer sales, according to the recently issued Wohlers Report 2007.

Published by Wohlers Associates, Inc. and recently released at the annual RAPID Conference & Expo in Detroit, Mich. (formerly called the RP&M Show), the report offers a detailed review and analysis of the rapid prototyping and 3D printing industry.

According to the report, Dimension shipped 51 percent of the 3D printers sold worldwide in 2006, increasing its market share from 43 percent (1072 units) of overall sales in 2005. The entire 3D printing industry sold an estimated 3,018 total units in 2006, 1559 of which were shipped by Dimension. Overall, revenues generated by 3D printer sales were up 16.6 percent in 2006, according to the report, and 3D printers accounted for 72.5 percent of all additive systems sold in 2006.

"The Dimension 3D Printing Group has achieved another important milestone by expanding its market share to more than 50 percent last year, demonstrating the industry's need for affordable, high quality 3D printing technologies," said Jon Cobb, vice president and general manager of 3D printing for Stratasys. "Dimension is well positioned to meet the continued demand for 3D printing technology in the years to come, due in large part to our more than 220 reseller outlets worldwide, including eight new resellers in Asia Pacific, and the recent release of our fifth 3D printer, the Dimension Elite.

The recently introduced Dimension Elite 3D Printer provides engineers and designers stronger, functional models with finer feature detail and improved surface finish. Priced at $32,900, the Elite features an 8 x 8 x 12-inch build envelope and uses a new, stronger ABS material, ABSplus. ABSplus is on average 40 percent stronger than standard ABS material, making it ideally suited for testing the form, fit and function of inherently fragile, fine-featured models. The Elite joins the group's market leading line of desktop modeling systems -- which includes the Dimension 1200 Series (priced from $21,900) and 768 Series (priced from $18,900) -- as the fifth 3D printer within the Dimension product family.

About The Dimension 3D Printing Group

The Dimension 3D Printing Group is a business unit of Stratasys, Inc., based in Minneapolis, Minn. Dimension 3D printers - which include the Elite, the Dimension 1200 Series and Dimension 768 Series - are networked, desktop modeling systems that provide CAD (Computer-Aided-Design) users a fast, office-friendly, low-cost alternative for building functional 3D prints. Dimension 3D printers build accurate models layer by layer using durable ABS plastic, allowing users to not only evaluate design concepts, but test 3D prints for functionality, form and fit. As the first large format desktop 3D printer that sells for less than $30,000, Dimension incorporates many key features found in modeling systems that cost tens of thousands of dollars more.

Forward Looking Statements

All statements herein that are not historical facts or that include such words as "expects", "anticipates", "projects", "estimates" or "believes" or similar words are forward-looking statements that we deem to be covered by and to qualify for the safe harbor protection covered by the Private Securities Litigation Reform Act of 1995. Our belief that we have the largest part-building service claim is based on the number of dedicated machines. Except for the historical information herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties; these include the continued market acceptance and growth of our Dimension (TM )line, Prodigy Plus, FDM Maxum(TM), FDM Vantage(TM), and Titan(TM) product lines; the size of the 3D printing market; our ability to penetrate the 3D printing market; our ability to maintain the growth rates experienced in this and preceding quarters; our ability to introduce and market new materials such as PC-ABS and the market acceptance of this and other materials; the impact of competitive products and pricing; the timely development and acceptance of new products and materials; our ability to effectively manage the transition period following the discontinuation of the Objet distribution agreement; our ability to effectively and profitably market and distribute the Arcam product line; the success of our recent R&D initiative to expand the rapid manufacturing capabilities of our core FDM technology; the success of our RedEyeRPM(TM) and other parts services; and the other risks detailed from time to time in our SEC Reports, including the annual report on Form 10-K for the year ended December 31, 2005 and 10-Q filed throughout 2006.