January 31, 2007

Dimension 3D Printing Group Introduces the Dimension Elite

New 3D Printer Delivers Stronger Models with Finer Feature Detail and

Improved Surface Finish at an Affordable Price

MINNEAPOLIS--(BUSINESS WIRE)--Jan. 31, 2007--The Dimension 3D Printing Group, a business unit of Stratasys, Inc. (Nasdaq:SSYS), today launched and announced immediate availability of the Dimension Elite 3D Printer. The Elite joins the group's market leading line of desktop modeling systems -- which includes the Dimension 1200 Series (priced from $21,900) and 768 Series (priced from $18,900) -- as the fifth 3D printer within the Dimension product family. The Elite was introduced this week at the annual Dimension reseller conference in Las Vegas, Nevada to Dimension's network of more than 200 partners worldwide.

The Dimension Elite 3D Printer provides engineers and designers stronger, functional models with finer feature detail and improved surface finish. Priced at $32,900, the Elite features an 8 x 8 x 12-inch build envelope and uses a new, stronger ABS material, ABSplus. ABSplus is on average 40 percent stronger than standard ABS material, making it ideally suited for testing the form, fit and function of inherently fragile, fine-featured models.

"The Dimension Elite addresses a market need for an affordable, networked, 3D printer capable of building stronger functional models with finer feature detail," said Jon Cobb, vice president and general manager of 3D printing for Stratasys. "Engineers and designers creating models that demand finer detail - such as those designing tomorrow's electronic connectors, medical testers and small instruments - will be thrilled by the performance and affordability of the Dimension Elite. We believe the Elite is an important addition to our successful line of 3D printers, offering designers who put a premium on strength and detail an affordable output option."

For more information on Dimension 3D printers, visit www.dimensionprinting.com or call toll free 888-480-3548 (U.S.).

About The Dimension 3D Printing Group

The Dimension 3D Printing Group is a business unit of Stratasys, Inc., based in Minneapolis, Minn. Dimension 3D printers - which include the Elite, the Dimension 1200 Series and Dimension 768 Series - are networked, desktop modeling systems that provide CAD (Computer-Aided-Design) users a fast, office-friendly, low-cost alternative for building functional 3D prints. Dimension 3D printers build accurate models layer by layer using durable ABS plastic, allowing users to not only evaluate design concepts, but test 3D prints for functionality, form and fit. As the first large format desktop 3D printer that sells for less than $30,000, Dimension incorporates many key features found in modeling systems that cost tens of thousands of dollars more.

Forward Looking Statements

All statements herein that are not historical facts or that include such words as "expects", "anticipates", "projects", "estimates" or "believes" or similar words are forward-looking statements that we deem to be covered by and to qualify for the safe harbor protection covered by the Private Securities Litigation Reform Act of 1995. Our belief that we have the largest part-building service claim is based on the number of dedicated machines. Except for the historical information herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties; these include the continued market acceptance and growth of our Dimension line, Prodigy Plus, FDM Maxum, FDM Vantage, and Titan product lines; the size of the 3D printing market; our ability to penetrate the 3D printing market; our ability to maintain the growth rates experienced in this and preceding quarters; our ability to introduce and market new materials such as PC-ABS and the market acceptance of this and other materials; the impact of competitive products and pricing; the timely development and acceptance of new products and materials; our ability to effectively manage the transition period following the discontinuation of the Objet distribution agreement; our ability to effectively and profitably market and distribute the Arcam product line; the success of our recent R&D initiative to expand the rapid manufacturing capabilities of our core FDM technology; the success of our RedEyeRPM and other parts services; and the other risks detailed from time to time in our SEC Reports, including the annual report on Form 10-K for the year ended December 31, 2005 and 10-Q filed throughout 2006.

CONTACT: Stratasys
Investor Relations contact:
Shane Glenn, Director of Investor Relations, 952-294-3416
Haberman & Associates
Media contacts:
Brian Wachtler, 612-338-3900
Alex Seitz, 612-338-3900

SOURCE: Dimension 3D Printing Group

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