Dimension 3D Printing Group Opens Office in Mainland China; Announces Reseller Agreements with Seven New China-Based Partners.

Dimension's durable ABS models meet demands for finished parts from Chinese manufacturers

MINNEAPOLIS -- The Dimension 3D Printing Group, a business unit of Stratasys, Inc. (Nasdaq:SSYS), today announced it has opened a new office in Shanghai, China. Dimension also announced new reseller agreements with seven China-based partners that will distribute Dimension's industry-leading 3D printing solutions throughout the region.

The new office and reseller agreements expand Dimension's market reach in Asia Pacific, which already includes a network of Dimension partners in Hong Kong and Taiwan.

"As more design centers emerge in China to support the large number of manufacturing companies, the opportunity to provide reliable, high-quality 3D printing technology in this region continues to grow," said Jon Cobb, vice president and general manager of 3D printing for Stratasys. "The durable models Dimension 3D printers produce meet the demands Chinese manufacturers have for desktop systems that can produce nearly finished parts. With these strategic initiatives and alliances, we are well-positioned to capitalize on this growing opportunity."

Dimension recently introduced the Dimension 1200 Series, the industry's first large-format 3D printers priced less than $30,000. The Dimension BST 1200 and SST 1200 are priced $21,900 and $29,900, respectively. The company also recently announced price reductions for the Dimension([R]) 768 Series. The 768 Series includes a newly designed exterior, and utilizes upgraded Catalyst([R]) EX software. The Dimension BST 768 and SST 768 are priced $18,900 and $24,900, respectively.

Dimension's 1200 and 768 Series 3D Printers use durable ABS plastic, allowing users to test 3D prints for functionality, form and fit. Dimension SST systems include all the functionality of Dimension BST systems, but incorporate an automated soluble support removal system, which gives users greater convenience in the design process by reducing engineering time and enabling the development of prototypes with more complex design geometries.

The area manger for the new Dimension China office is Qun Zhang. He can be contacted via email at [e-mail].

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 Dimension 1200 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. For more information on Dimension 3D printers, visit www.dimensionprinting.com.

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.