VALENCIA, Calif., February 16, 1999 - 3D Systems Corporation (Nasdaq NMS: TDSC) today reported that net income for the fourth quarter of 1998 totaled $775,000, equal to 7 cents per share, compared to a net loss of $2.6 million, or 22 cents per share, in the corresponding quarter of the prior year.

In the 1997 quarter, the company incurred non-recurring charges amounting to $2.1 million related primarily to inventory adjustments and the restructuring of its European operations.

Fourth quarter 1998 revenues grew 10 percent to a record $27.3 million from $24.7 million for the like period a year ago.

For the year ended December 31, 1998, net income rose to $2.1 million, equal to 18 cents per share, compared with a net loss of $4.6 million, or 40 cents per share in 1997. Revenues for 1998 were a record $98.1 million, up 9 percent from $90.3 million in the prior year.

Arthur B. Sims, chairman and chief executive officer, commented: "3D Systems made real progress in 1998. In addition to improved results, we advanced our new products agenda, strengthened the balance sheet and positioned the company for growth in the coming year and beyond.

"Our strong fourth quarter results were highlighted by the highest quarterly sales in company history, with product revenues accelerating briskly from the third quarter level. Gross margin strengthened appreciably in the quarter, reflecting favorable product mix. On the other hand, expenses were impacted by a negative swing in foreign exchange due to the Deutsche Mark's gain against the dollar."

For the year, the company shipped 225 systems compared to 274 units in 1997. However, product mix was more favorable this past year, and included a higher percentage of high-end systems. Backlog at year-end 1998 totaled $8.8 million, up from $3.5 million one year earlier.

"European sales in full year 1998 were very strong," Sims said, "with orders rising 38% from the previous year. Despite the region's economic turmoil, Asia Pacific sales held essentially even with the 1997 level. U.S. sales showed modest improvement, and we are investing significantly in new sales, marketing and product initiatives to improve our performance."

Representing the most extensive and significant wave of new products in company history, 3D Systems introduced an array of new generation materials offering greater speed and improved mechanical properties; new high-performance, user friendly Windows NT-based software; and, just last week, the most capable solid imaging system ever available, the SLA 7000. Targeted at users with high production requirements, the SLA 7000 offers excellent resolution in solid object imaging and four times the productivity of the company's previous flagship unit, the SLA 5000, according to Sims.

He noted strong initial customer interest in the SLA 7000 which he said offers a very attractive price/performance proposition, but added that the system will not provide significant benefit to the company's sales until the second half of 1999 due to the high-end machine's longer acquisition cycle.

At year-end, 3D Systems' balance sheet showed cash and investments of $19.4 million, up from $16.2 million at December 31, 1997. Inventories were down and accounts receivable turnover improved from 1997.

"We have positioned the company to execute its growth strategy in the coming year. The first half will be challenging due to a higher level of investment in marketing. However, we look forward to improving results as the year progresses, and believe that 1999 will be an important and successful year for 3D Systems," Sims concluded.

About 3D Systems
3D Systems provides solid imaging products and services that allow users to move quickly from three-dimensional designs to finished parts, at a significantly lower cost and higher quality than more traditional methods. The company's systems, through patented stereolithography and 3D printing technologies, fabricate solid objects from digital input. This process substantially reduces the time and cost of product development, resulting in shorter time to manufacturing and time to market. Based in Valencia, Calif., 3D Systems was founded in 1986, and is recognized as the world leader in solid imaging.

To obtain additional information about 3D Systems products and services, call (888) 337-9786 (toll-free) and request extension 703. For investor information, please call the 3D Systems shareholder communications service at (800) 757-1799.

Except for the historical information contained in this news release, the matters discussed include forward-looking statements that involve risks and uncertainties including the availability and acceptance of new products, the impact of competitive products and pricing, the ability of the company to continue to contain expenses, dependence on key personnel, industrywide domestic and international economic conditions, and other risks detailed in the company's SEC reports including the Form 10-K for the year ended December 31, 1997.

3D Systems and SLA are trademarks of 3D Systems, Inc. Windows NT is a trademark of Microsoft Corporation.