STRATASYS ADDS METAL

Company will offer Arcam Metal-Based Rapid Manufacturing and Prototyping Systems

Minneapolis, Jan. 24, 2006 - (Nasdaq: SSYS) Stratasys announced it has reached an agreement with Arcam AB, Gothenburg, Sweden, for Stratasys to be the exclusive North American distributor of Arcam(r) rapid manufacturing and prototyping systems.

In Arcam's patented electron-beam melting (EBM) process, called CAD to Metal(r), titanium powder is transformed into solid metal parts for either functional prototyping or end-use. The process is currently used in three main industries: aerospace, automobile, and medical implants.

"This agreement launches Stratasys into metal-powder systems and closes the gap so that it can now go head-to-head with almost anyone in the world of additive fabrication technology," says Terry Wohlers, president of independent consulting firm Wohlers Associates.

"Our products range from entry-level 3D printers through systems offering high speed and resolution to high-productivity systems that build strong, accurate plastic parts," says Stratasys CEO Scott Crump. "And now we offer the ultimate in rapid manufacturing and prototyping - the EBM direct metal process. This strengthens our position in the growing RP&M (rapid prototyping and manufacturing) market.

"We decided to partner with Arcam after a thorough evaluation of its process convinced us that it outperforms competitive processes. The electron-beam melting process is five times more efficient than competitive laser-based metal-fabrication processes. We see strong potential for Arcam's products in North America, and we expect to help expand its installed base here."

Stratasys Inc., Minneapolis, makes rapid manufacturing and prototyping systems and 3D printers, and it offers prototyping and manufacturing services. Stratasys equipment is used in industries such as aerospace, automotive, defense, medical, and consumer products. In 2004, the company installed 36 percent of all systems sold worldwide, making it the unit market leader for the third consecutive year, according to Wohlers Report 2005. Stratasys patented the rapid prototyping process known as fused deposition modeling (FDM(r)). The process creates functional models directly from any 3D CAD program using ABS plastic, polycarbonate, PPSF or other materials. The company holds 175 granted or pending prototyping patents. In addition to manufacturing products, Stratasys is the exclusive North American distributor of PolyJet rapid prototyping systems and Arcam rapid manufacturing and prototyping systems. 

www.Stratasys.com

Arcam AB Gothenburg, Sweden makes rapid-manufacturing and prototyping equipment for direct manufacturing of parts or functional prototypes in metal. It's systems are used in aerospace, automotive and medical applications. The technology offers significant reductions of lead time and cost. 

www.Arcam.com

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