Spatial and Visionary Design Systems Announce ACIS 5.0-Enabled IronCAD 2.0.

BOULDER, Colo.--(BUSINESS WIRE)--Mar. 4, 1999--

IronCAD 2.0 first application released on ACIS 5.0

Spatial Technology Inc. (AMEX: STY), the world's leading developer of open, component 3D modeling technology, and Visionary Design Systems, Inc., the leader in e-Engineering(TM), today announced the release of ACIS(R) 5.0-enabled IronCAD 2.0. IronCAD 2.0 represents the first application to be released featuring the advanced modeling and interoperability enhancements of ACIS 5.0 which was released on January 20, 1999. End users benefit from the open, modern architecture of ACIS because it allows Visionary Design Systems to integrate new versions of ACIS into IronCAD quickly.

"ACIS 5.0 became available to us fairly late in our development cycle, and we were pleased to discover that we could quickly integrate it into IronCAD 2.0 and reap the advantages it offers," said Gary Stoll, vice president of engineering, Visionary Design Systems. "ACIS 5.0 provides improvements in many areas, including blending and data interoperability, which combine with IronCAD's unique Hyper-operability features to give our customers the only environment where foreign models can be imported and modified as though they were created natively."

"It is rare to see a new CAD application with as much innovation and extensibility as IronCAD. We are extremely impressed that Visionary Design Systems has been able to release IronCAD 2.0 with the newest features and functions of ACIS 5.0 in record time," said Bruce Morgan, president and CEO, Spatial. "The biggest benefit of the open, object-oriented architecture of ACIS is that new functionality is added at a velocity unmatched in the industry. Spatial's aggressive release schedule is designed to meet the tough demands of leading edge developers like Visionary Design Systems."

Mr. Morgan added, "The partnership between Spatial and Visionary Design Systems is a success due to our mutual desire to offer the most advanced modeling functionality in the industry and a fundamental focus on 3D model interoperability. Clearly, the true winners of this partnership are the ever-increasing numbers of IronCAD end users."

"In the consulting business, interoperability is very important as we are constantly interfacing with a wide variety of CAD, CAM and rapid prototyping systems," said Robert Berger, Principal, RL Berger PDC. "IronCAD's ability to perform explicit modeling operations on imported models with its Direct Face Modeling is unique among history based modelers. Now, with ACIS 5.0's new tolerant modeling capabilities and healing technology, IronCAD 2.0 is establishing a new standard in MCAD system interoperability."

About ACIS-Enabled IronCAD 2.0

ACIS-enabled IronCAD 2.0, the most rapidly adopted mechanical solid modeler in recent years, is a revolutionary design tool that incorporates the first, new solid modeling architecture in a decade, taking Windows(R) based engineering to new levels of productivity and functionality. With all the features expected of a production product development tool, and more importantly those features unique to IronCAD, mechanical engineers are embracing e-Engineering(TM) -- total Design Chain integration. IronCAD's Design Flow(TM) Architecture is the backbone of e-Engineering, and this advanced architecture, patented technologies, and the power of the web enable everyone in the Design Chain to contribute without regard to who built the model, how it was created, or which CAD system was used. IronCAD provides a powerful approach to design through its four main features: Drag-and-Drop Solid Modeling, which provides the first, true 3D design environment for solid modeling; Design Flow Architecture, which supports the entire design flow (from concept, through detail design, to unanticipated pre/post production changes); Visual Product Development, which provides visualization that enhances the complete design process; and Hyper-operability, which takes concurrent engineering beyond the established industry standards of interoperability by allowing anyone to modify and utilize a design imported from any system as if it were created natively in IronCAD.

About Visionary Design Systems

Visionary Design Systems, Inc. (VDS) invents, creates and implements computer-based solutions and services for mechanical engineering product development worldwide. The company develops state-of-the-art productive solids modeling applications and offers support, implementation, training and consulting services. Founded in 1990, VDS is a privately held company funded by Benchmark Capital, Sutter Hill Ventures, Hambrecht & Quist, and CAD/CAM industry veteran Don Feddersen. VDS has headquarters in Santa Clara, California, and serves customers from sales and support offices throughout the United States. VDS can be reached via phone at 408.969.8000 or on the Internet at http://www.vds.com and at http://www.ironcad.com.

About Spatial Technology

Spatial Technology Inc. is the world leader in the development of open, component 3D modeling technology. The ACIS 3D Toolkit, Spatial's flagship product, is universally recognized as the de facto standard 3D modeling kernel for the MCAD, CAM, CAE, and AEC industries. With over 480 ACIS licensees and more than 1.3 million end users of over 175 ACIS-enabled applications, ACIS is indisputably the most widely used 3D modeling kernel in the world.

The open architecture of ACIS and the industry standard ACIS SAT file format are known as the "ACIS Geometry Bus." The ACIS Geometry Bus is the key to 3D model interoperability among ACIS-enabled applications, including ABAQUS/CAE by Hibbitt, Karlsson & Sorensen, Inc., AutoCAD and Mechanical Desktop by Autodesk, Inc. (Nasdaq: ADSK), CADKEY by Baystate Technologies, Inc., Grade/CUBE II by Hitachi Zosen Information Systems, GSCAD by Intergraph Corporation (Nasdaq: INGR), IronCAD by Visionary Design Systems, Inc., Maxwell 3D Field Simulation by Ansoft Corporation (Nasdaq: ANST), TurboCAD Solid Modeler by IMSI (Nasdaq: IMSI), Vellum Solids by Ashlar Inc., and Working Model 3D by MacNeal-Schwendler Corporation (NYSE: MNS).

To further extend Spatial's leadership in sharing and accessing CAD model data throughout the design and manufacturing process, Spatial and InterData Access, Inc. (IDA) have combined their technical expertise, products, and financial strength. IDA, Spatial's Interoperability Solutions Subsidiary, is a leading provider of product data viewing, data translation, and digital mock-up software and consulting services to Fortune 500 industrial companies worldwide. IDA products include IntraVISION(R), CALSVIEW(TM), VisionShare(TM), Data Exchange Manager, and IGES/STEP development tools. IDA's customers include Boeing, Bombardier, Caterpillar, Diebold, General Electric, Harley Davidson, Hitachi, Lear Jet, Motorola, Northrop Grumman, and Silicon Graphics. For more information, visit IDA's Web site at http://www.ida.com.

Spatial Technology is headquartered in Boulder, Colorado, and has offices in Europe and Asia. Shares of Spatial stock are publicly traded on the Nasdaq-AMEX exchange under the symbol "STY" (AMEX: STY). For more information, visit Spatial's Web site at http://www.spatial.com, or call [phone].

Statements made in this news release that are not historical facts may be forward-looking statements. Actual results may differ materially from those projected in any forward-looking statement. There are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information. A description of risks and uncertainties attendant to Spatial Technology Inc. and its industry, and other factors which could affect the Company's financial results, are included in the Company's Securities and Exchange Commission filings, including but not limited to the Company's annual report on Form 10-KSB for the year ended December 31, 1998.

Spatial Technology Inc. and SAT are trademarks. ACIS is a registered trademark of Spatial Technology Inc. CALSVIEW and VisionShare are trademarks of InterData Access, Inc. IntraVISION is a registered trademark of InterData Access, Inc. All other products are trademarks of their respective owners.