Helisys Expects Lower First-Quarter Earnings; New Domestic Sales Force Now in Place.

TORRANCE, Calif.--(BUSINESS WIRE)--Nov. 26, 1997--Helisys Inc. (Nasdaq:HELIE) Wednesday announced that the company expects to report a net loss in the range of $800,000 to $1 million, or $0.20 to $0.25 per share, for the first fiscal quarter ended Oct. 31, 1997.

The company expects that revenues for the quarter will be in the range of $2.5 million to $2.7 million, compared with revenues of $1.9 million for the first quarter of fiscal 1997, and revenues of $4.0 million for the prior quarter ended July 31, 1997.

Michael Feygin, Helisys' chairman and chief executive officer said, "Since a large percentage of our revenues are derived from foreign sales, the summer months have historically been slower than the rest of the year for us, reflecting the local business customs in many countries, which virtually shut down during the month of August. In addition to this seasonal pattern, our sales were also negatively impacted by the continuing strength of the dollar, as well as competitive pricing pressure in the domestic market."

Feygin continued, "To reduce our past dependence on foreign sales, we have taken steps to expand revenues generated in the U.S. A key component of this program is our transition from an exclusively direct sales force to a distribution network comprised of independent distributors and manufacturing representatives. This process has been completed, and we now have 15 distributors or manufacturing representatives strategically located throughout the U.S. We are hopeful that we will experience the benefits of this expanded distribution network in the coming quarters."

Helisys develops and builds automated systems for creating physical models, industrial patterns and product prototypes directly from three-dimensional computer-generated designs. Helisys' manufacturing customers include makers of automobiles, toys, appliances, sporting goods, electronic hardware, medical devices, aerospace components, shoes, springs, and other products. Helisys' systems also are used in university research environments and supercomputer centers. -0- Forward Looking Statement: The statements in this news release contain forward-looking information relating to the company's future performance. Actual events and performance may differ materially from the company's expectations. The company hereby makes reference to the documents that the company files with the Securities and Exchange Commission, including its Form 10-KSB for fiscal year ended July 31, 1996; 10-QSB for the periods ended Oct. 31, 1996, Jan. 31, 1997, and April 30, 1997, respectively; and Registration Statement on Form SB-2, as declared effective by the Securities and Exchange Commission on March 7, 1996, including, without limitation, the information contained in the section to the Registration Statement entitled "Risk Factors." These documents identify important factors that could cause the company's actual performance to differ from the company's expectations and the forward-looking statements contained in this news release. These factors include, but are not limited to: quarterly fluctuations in operating results due to changes in the company's sales and customer mix, delays in shipping new systems, the introduction of new products and product enhancements by Helisys or its competitors, pricing pressures, increases in expenditures relating to pursuing the company's business strategies, general economic conditions and other factors; emerging nature of the rapid prototyping industry; reliance by Helisys on a single product line; continued reliability of the company's products; and dependence by the company on its proprietary technology.

CONTACT: Helisys Inc., Torrance

Dave Okazaki, 310/891-0600

or

Sitrick and Company

Jeff Lloyd, 310/788-2850