STRATASYS PURCHASES IBM RAPID PROTOTYPING TECHNOLOGY

MINNEAPOLIS, Jan. 3 /PRNewswire/ -- Stratasys, Inc. (Nasdaq: SSYS) announced today that it has purchased the rapid prototyping technology developed by the IBM Thomas J. Watson Research Center in Yorktown Heights, N.Y. The technology can quickly create three-dimensional models that allow designers to examine and test prototypes during product development, which is the technology pioneered by Stratasys.

IBM's technology includes their patents, patent disclosures, prototype machines and documentation. Under the terms of the purchase agreement, IBM becomes a significant shareholder in Stratasys, a leading manufacturer of rapid prototyping systems for automotive, aerospace, industrial, electronic, medical and consumer products original equipment manufacturers (OEMs).

"We are excited about the prospects for this technology," said S. Scott Crump, president and founder of Stratasys. "IBM's work is complementary to Stratasys' Fused Deposition Modeling process, significantly extending our existing technology base, and enabling us to expand into new prototyping applications."

In addition to increasing business opportunities, the purchase will enable Stratasys to enhance its recently released FDM(R) 1600 benchtop rapid prototyping system that couples conventional plastics and wax materials with new ABS engineering plastics capability.

"Our customers demand ever faster product development and manufacturing cycles with ever shorter time-to-market," Crump said. "The IBM asset purchase and a recent IPO place the company in a favorable position to deliver to our customers the tools to help them achieve competitive advantages and positions Stratasys with the strongest patent position in the rapid prototyping industry," Crump continued.

Stratasys, Inc., founded in 1989, is a manufacturer of rapid prototyping systems for automotive, aerospace, industrial, electronic, medical, and consumer product OEMs. The Company's patented Fused Deposition Modeling (FDM) process creates 3-dimensional plastic and wax models directly from 3-D CAD systems. Stratasys, Inc. is based in Minneapolis, and its stock is traded on the Nasdaq and Pacific stock exchanges under the symbols SSYS and SAS, respectively. The Company is located at 14950 Martin Drive, Eden Prairie, Minn., 55344; telephone [phone]; fax [phone].

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/CONTACT: S. Scott Crump, President, or Tom Stenoien, Controller, 612-937-3000/

(SSYS)

CO: Stratasys, Inc. ST: Minnesota IN: CPR SU: PDT

DP-AL -- MN009 -- 0891 01/03/95 14:45 EST