Helisys announces nine-month results; revenues up 27 percent.

TORRANCE, Calif.--(BUSINESS WIRE)--June 12, 1996--Helisys Inc. (NASDAQ:HELI) Wednesday announced that revenues for the nine months ended April 30, 1996, increased 27 percent to $10,464,000 from $8,274,000 for the comparable nine months during fiscal 1995.

Net income for the nine month period totaled $367,000, or $0.12 per share, compared to $959,000, or $0.36 per share for the prior year.

Revenues for the three months ended April 30, 1996, rose to $3,426,000 from $3,259,000 for the same period a year ago. Net income for the quarter was $20,000 or $0.01 per share, compared to $520,000, or $0.19 a share for the same period in the prior year.

"The results for the third quarter and nine months were in line with analysts' expectations and were consistent with our own internal projections," said Michael Feygin, chairman and chief executive officer of Helisys. "Industry experts know that the proper way to evaluate our company's results is not on a quarter-by-quarter basis, but rather to look at the actions we are taking to build shareholder value and to position the company for the future.

"Over the past nine months we have made significant additions to our engineering, sales, service, manufacturing and administrative operations. Further, we more than doubled our R&D spending in the third quarter of 1996, compared to the same quarter in 1995. We believe that all of these actions will benefit the long-term viability of the company," Feygin added.

"During the third quarter Helisys achieved a number of significant milestones, including the completion of a successful initial public offering, which provided the company with net proceeds of $6,105,000. Another noteworthy achievement during the quarter was winning a $600,000 follow-on research contract from the U.S. Army's Aviation and Troop command to develop new metallic and non-metallic Laminated Object Manufacturing (LOM) materials for use on attack helicopters.

"This two-year contract will enhance the ongoing research and development of our advanced sheet materials, such as metals and composites, to enable our machines to make functional end-user parts and molds," Feygin said.

"At the end of April we introduced our new 2030H system at the Rapid Prototyping and Manufacturing Conference in Dearborn, Mich., and subsequently installed the unit at a customer beta site. We originally believed that the beta testing would be completed in time for a fourth quarter launch of the product. However, based upon the preliminary results from this beta test, it appears that there may be some areas in which additional testing and refinement will be required.

"Although this decision may result in a delay in bringing the 2030H to market, thus reducing our fourth quarter results, we believe that such a decision would be prudent, as the 2030H is extremely advanced and incorporates many state-of-the-art components which are significantly different from our current LOM 2030E system. We intend to build and ship reliable products that address the needs of our customers.

"We need to integrate any changes that may be dictated by the results of our beta and in-house testing prior to shipping new units to customers. The importance of this product to Helisys and its customers requires that we be confident in its performance prior to releasing them for commercial use.

"We also believe it prudent to point out that uncertainties surrounding the recent restructuring of the sales department and the appointment of our new Vice President of Worldwide Sales could also have a potentially adverse impact on fourth quarter results. While we are very confident in the long-term benefits associated with the strengthening of our sales efforts, we simply have no way of knowing what impact, if any, these changes could have on short term sales and on fourth quarter results," Feygin concluded.

Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties including, but not limited to, the company's ability to bring the 2030H to market in a timely manner, the market reaction to changes in the structure of the company's sales department, competitive developments, and general market conditions.

Helisys is a pioneer in the development, manufacture and sale of laser-based Rapid Prototyping systems. Rapid Prototyping systems are used in conjunction with three-dimensional computer-aided designs ("3-D CAD") workstations to produce three dimensional prototypes of objects.

The company's Rapid Prototyping systems allow manufacturers worldwide to bring products to market faster, at lower cost, and with improved quality and performance as compared to traditional fabrication methods. Typical customers include manufacturers of automobiles, appliances, sporting goods and accessories, electronic hardware, medical devices, toys, shoes, springs and aerospace components. -0-

                             Helisys Inc.
                 Consolidated Statements of Operations
                             (unaudited)

                          Three months ended      Nine months ended
                              April 30,              April 30,
                         1996         1995        1996         1995

Revenues          $ 3,426,000  $ 3,259,000  $10,464,000  $ 8,274,000
Net income        $    20,000  $   520,000  $   367,000  $   959,000
Net income
 (loss) per
 share            $      0.01  $      0.19  $      0.12  $      0.36
Weighted
  average
  shares
  outstanding       3,425,142                  2,941,714

CONTACT: Helisys Inc., Torrance

Dave Okazaki, 310/891-0600, Ext. 227

or

Sitrick and Co. Inc.

Jeffrey Lloyd, 310/788-2850