VALENCIA, Calif., Oct. 17, 2001 – 3D Systems Corp. (Nasdaq: TDSC) today announced revenues for the third quarter 2001 of $31.5 million compared with $29.5 million in the prior year, an increase of 7%. Earnings per fully diluted share were 2 cents in the third quarter of 2001 compared with 21 cents in the same period the prior year.

Revenues for the first nine months of 2001 totaled $84.5 million compared with $78.0 million in the same period the prior year, an increase of 8%. Earnings per fully diluted share of 10 cents were achieved in the first nine months of 2001 compared with 45 cents per fully diluted share in the prior-year period.

During the quarter, 3D Systems successfully completed the acquisition of DTM Corporation. The increase in revenue in both the third quarter and nine-month period is primarily attributable to the impact of consolidating the results of DTM’s operations effective Aug. 20, 2001. The SLS® product line, which comprises systems, powders and services, provided $7.3 million in revenue for the period in which the SLS product line was included with the company’s operations.

“In the third quarter our revenue and profitability levels, especially in the U.S., were challenged by economic conditions and the effects of the events surrounding Sept. 11,” said Brian K. Service, president and chief executive officer. “All areas of the business were impacted. The multi-jet modeling (MJM) and SLA® product lines recorded revenues below the similar prior-year period, while revenue associated with the SLS product line was similar to those recorded a year ago.

“The earnings shortfall is directly attributable to the reduction in the number of large-frame systems sold relative to the overall higher number of total SLA systems shipped,” Service said. “Our margins for the third quarter of 2001 were 43% compared with 49% in the same period the prior year. This trend is due primarily to continued weaknesses in the automotive and aviation market segments.

“We were pleased that, despite the obvious impact on earnings, operating cash flow was approximately $3 million,” he added.

“Despite the weakness in large frame systems, sales growth for the new Viper SLA system showed strength in the third quarter with a total of 32 units sold, which is a significant increase from the second quarter of 2001, when it was introduced,” Service said. “The newly introduced Vanguard SLS system accounted for a majority of the SLS units shipped.”

Service added: “Despite the circumstances surrounding this quarter, we believe the company can continue to move forward and execute its plan to penetrate opportunities in specific applications that are currently under development, such as footwear, defense, dental and other medical devices. As businesses begin to return to normal spending levels, we expect to continue our growth. We are focusing our efforts on maintaining profitability and enhancing liquidity as we pursue these opportunities.”

In conjunction with the merger of DTM Corp., the company advanced $39.0 million under a newly established credit facility to fund the transaction. As of Sept. 28, 2001, the outstanding balance under the credit facility was reduced to $35.2 million.

“The integration of the laser sintering business with 3D Systems is proceeding well, and we expect to have that activity complete by year end with the ability to realize the synergies and cost savings,” said E. James Selzer, chief financial officer. “In addition, we believe that our acquisition of RPC Ltd. of Marly, Switzerland, will provide additional development and growth opportunities for resin materials used in our SLA systems.”

As previously announced, 3D Systems will hold a conference call at 1:30 p.m. Eastern time today to discuss results. The call can be accessed by dialing 877/613-8341 or 706/679-7620 internationally. A recording of the call will be available for 48 hours beginning at 4 p.m. Eastern time today. The recording can be accessed by dialing 800/642-1687 or 706/645-9291 internationally and entering 2055754.

About 3D Systems
Founded in 1986, 3D Systems provides solid imaging products and solutions that help reduce the time and cost of designing products and facilitate direct and indirect manufacturing. Its systems utilize patented technologies that create physical objects from digital input.

3D Systems currently offers the ThermoJet® solid object printer, SLA® systems (stereolithography) and SLS® systems (selective laser sintering), as well as related software and materials. Product pricing in the U.S. ranges from $49,995, for the ThermoJet printer, to $799,000 for the high-end SLA 7000 system. The company licenses the complementary 3D Keltool® process, a method for producing steel mold inserts, and currently is developing systems that use composite paste materials for direct manufacturing. In August, 3D Systems merged with DTM Corp.

More information on the company is available at www.3dsystems.com, or by phoning 888/337-9786, extension 797, or 661/295-5600 internationally. An investor packet can be obtained by calling 800/757-1799.

Note to editors: ThermoJet, SLA, SLS, Keltool and the 3D logo are registered trademarks of 3D Systems.

Certain statements in this news release may include forward–looking statements which express the expectation, prediction, belief or projection of 3D Systems. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance and achievement of 3D Systems to be materially and adversely different from any future results, performance or achievement expressed or implied by these forward-looking statements. Factors that may cause actual results to differ from the forward-looking statements contained in this release and that may affect the company’s prospects in general include, but are not limited to: world economic conditions including the unknown effects of the continuing U.S. military action; the funding of amounts of capital adequate to provide for the working capital needs of the company; actions of competitors and customers; reliance on single or limited suppliers; the ability to close our acquisition of RPC and efficiently integrate its operations into ours or alternatively to timely and cost–effectively identify and obtain or independently develop resins adequate for use with 3D Systems’ products; the ongoing costs and uncertain outcome of the arbitration proceeding between 3D Systems and Vantico Inc.; the ability to realize the cost reductions from the efficient integration of DTM into the business of 3D Systems; and such other factors as are described in the company’s filings with the Securities and Exchange Commission, including annual reports on Form 10–K for the year ended Dec. 31, 2000, quarterly reports on Form 10–Q for the quarters ended March 31 and June 30, 2001, and 3D Systems’ current reports on Form 8–K filed on April 6, April 10 and Sept. 4, 2001.

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