ROCK HILL, South Carolina – August 3, 2009 - 3D Systems Corporation (NASDAQ: TDSC), a leading provider of 3-D Printing, Rapid Prototyping and Manufacturing solutions, announced today its operating results for the second quarter and first six months of 2009.

The company reported improved gross profit margin and reduced net loss for the second quarter of 2009 on lower revenue and lower operating expenses compared to the second quarter of 2008.

The company reduced its net loss by 60% on a 33% revenue decline for the second quarter of 2009 compared to the 2008 quarter, reflecting the positive impact of its cost-control and profit-improvement initiatives. It reported a net loss of $1.3 million, which included $2.1 million of non-cash expenses primarily related to the company's ongoing depreciation and amortization expense.

The company reported that it had improved its cash position for the third consecutive quarter. For the first six months of 2009, it reported that it generated $1.8 million of net cash and finished the period with $24.0 million of available cash compared to $22.2 million at December 31, 2008.

"We are pleased that, amidst the continued unprecedented global slowdown that has led to the reduction in our revenue compared with the 2008 periods, sales of our systems and proprietary materials improved during the second quarter sequentially," said Abe Reichental, 3D Systems' President and Chief Executive Officer.

"Notwithstanding the challenging environment in which we are operating, our gross profit margin for the quarter increased and our operating expenses decreased compared to the second quarter of 2008. These improvements have now demonstrated sustainability for three successive quarters," continued Reichental.

Systems' revenue increased sequentially by $1.0 million led by an 89% rebound in large-frame systems but declined to $5.9 million in the second quarter of 2009 from $11.5 million in the 2008 quarter. 3-D Printer sales benefited from the launch of the new V-Flash® Desktop Printer and sustained demand for the ProJet™ Professional Printer aided in part by continued growth in the dental applications' installed base.

Materials' sales grew by $1.1 million sequentially, indicating a modest recovery across the installed base, but declined some 28% relative to the second quarter of 2008. This decrease was a result of the combined effect of lower demand from service providers and a decline in end-user consumption, reflecting the recessionary business conditions. Sales of integrated materials represented 30% of total materials revenue in the second quarter of 2009.

Service revenue decreased some 20% year over year to $7.1 million for the quarter primarily as a result in a significant drop of maintenance and warranty revenue, reflecting the trailing 12 month cumulative impact of the decline in large-frame systems' revenue that began during the first quarter of 2008. The decrease in service revenue partially reflects the company's continued efforts to improve the profitability of its service revenue by culling less profitable components that resulted in a 22.1 percentage point improvement in Field Service gross profit margin from 15.7% to 37.8%.

Both foreign currency translation and weak global demand, particularly in the automotive sector, negatively impacted revenue in the second quarter of 2009. This negative impact was particularly strong in Japan. The company ended the quarter with total backlog of approximately $1.6 million, consistent with normal operating trends of its business.

"During the second quarter of 2009, we began commercial shipments of our V-Flash® Desktop Printer," added Reichental. "We are very pleased with the initial marketplace reception that this sub-$10,000 3-D Printer is enjoying, particularly within educational and MCAD applications due to its superior speed, part quality and durability. Consistent with our plan, we expect shipments of V-Flash® Desktop Printers to increase during the third quarter. Our V-Flash® activities during the second quarter negatively affected our total gross profit margin by 2.1 percentage points for the quarter, consistent with our prior comments regarding their anticipated short-term effects. More information on the V-Flash® Desktop Printer is available at www.modelin3d.com.

"While the near-term economic outlook remains uncertain, we believe that market conditions may have begun to stabilize and that our revenue decline may have bottomed out during the first quarter of this year.

"We remain committed to our long-term growth objectives and expect to benefit competitively from our new and expanded product portfolio and stronger financial position. Given the progress we have made over the past three quarters, we are confident in our ability to execute on our plan and provide value to our customers and stockholders," concluded Reichental.

Conference Call and Audio Webcast Details
3D Systems will hold a conference call and audio webcast to discuss its operating results for the second quarter and first six months of 2009 on Tuesday, August 4, 2009 at 9:00 a.m., Eastern Time.

• To access this Conference Call, dial 1-888-336-3485 (or 706-634-0653 from outside the United States). The confirmation code is 208-633-98.
• To access the audio webcast, log onto 3D Systems' Web site at www.3dsystems.com/ir. To ensure timely participation and technical capability, we recommend logging on a few minutes prior to the conference call to activate your participation. The webcast will be available for replay beginning approximately three hours after completion of the call at: www.3dsystems.com/ir.

Forward-Looking Statements
Certain statements made in this release that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements that use the word "preliminary" or variations of that word or that are in the conditional or future tenses or that include terms such as "believes," "belief," "expects," "estimates," "intends," "anticipates" or "plans" to be uncertain and forward-looking.

Forward-looking statements may include comments as to the company's beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the control of the company. The factors described under the headings "Forward-Looking Statements," "Cautionary Statements and Risk Factors," and "Risk Factors" in the company's periodic filings with the Securities and Exchange Commission, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements.

About 3D Systems
3D Systems is a leading provider of 3-D Printing, Direct Rapid Prototyping and Direct Manufacturing solutions. Its systems and materials reduce the time and cost of designing products and facilitate direct and indirect manufacturing by creating actual parts directly from digital input. These solutions are used for design communication and prototyping as well as for production of functional end-use parts: Transform your products.

More information on the company is available at www.3dsystems.com or via e-mail at moreinfo@3dsystems.com.