February 4, 2009

RedEye On Demand is First Digital Manufacturing Service Provider to Offer ULTEM* Product

ULTEM is a promising new material for direct digital manufacturing and rapid prototyping

MINNEAPOLIS--(BUSINESS WIRE)-- RedEye On Demand (www.redeyeondemand.com), a business unit of Stratasys (NASDAQ: SSYS), today announced the addition of ULTEM*, a high-performance engineering thermoplastic material, for direct digital manufacturing applications. RedEye On Demand is the only service provider to offer this unique material in an additive fabrication process.

ULTEM is a strong, high temperature, chemically resistant thermoplastic that can be used across many industries for nearly any digital manufacturing project, from functional prototypes to jigs & fixtures to low volume production runs.

“We continually strive to offer materials that improve strength and endurance. This allows direct digital manufacturing to be a real alternative to conventional manufacturing technologies such as: injection molding, extruding and blow molding. We are excited to be the first to provide an additive fabrication ULTEM product to our customers worldwide,” says Tim Thellin, RedEye On Demand Product Manager.

“The addition of ULTEM to our already extensive offering reinforces our commitment to provide the best products, technologies and services,” said Wayne Olson, RedEye Vice President. “As we continue to grow our materials, we will also expand our capabilities to ensure that we continue to offer the best digital manufacturing services.”

RedEye On Demand by Stratasys, Inc., is the leading digital manufacturing provider of prototypes and production parts worldwide. With over 100 systems in its centers, RedEye builds functional models and low-volume production parts made from thermoplastic materials, such as ABS, polycarbonate, ISO-certified PC, polyphenylsulfone, and Ultem. From digital 3D CAD files, RedEye builds durable, functional and repeatable parts. For instant online quoting or more information, visit www.redeyeondemand.com.

Stratasys, Inc., Minneapolis, manufactures additive fabrication machines for prototyping and manufacturing plastic parts. The company also operates a service for part prototyping and production. According to Wohlers Report 2008, Stratasys supplied 44 percent of all additive fabrication systems installed worldwide in 2007, making it the unit market leader for the sixth consecutive year. Stratasys patented and owns the process known as FDM.® The process creates functional prototypes and manufactured goods directly from any 3D CAD program, using high-performance industrial thermoplastics. The company holds more than 180 granted or pending additive fabrication patents globally. Stratasys products are used in the aerospace, defense, automotive, medical, business & industrial equipment, education, architecture, and consumer-product industries. On the Web: www.Stratasys.com

* ULTEM is a trademark of SABIC Innovative Plastics IP BV. RedEye On Demand is a trademark of Stratasys, Inc.

Forward Looking Statements

All statements herein that are not historical facts or that include such words as “expects”, “anticipates”, “projects”, “estimates”, “vision”, “planning” or “believes” or similar words constitute forward-looking statements covered by the safe harbor protection of the Private Securities Litigation Reform Act of 1995. Except for the historical information herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties. These include statements regarding projected revenue and income in future quarters; the size of the 3D printing market; our objectives for the marketing and sale of our Dimension 3D printers and our high-end productivity systems, particularly for use in direct digital manufacturing (DDM); the demand for our proprietary consumables; the expansion of our paid parts service; and our beliefs with respect to the growth in the demand for our products. Other risks and uncertainties that may affect our business include 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, produce and market new materials, such as ABS-Plus and ABS-M30, and the market acceptance of these and other materials; the impact of competitive products and pricing; our timely development of new products and materials and market acceptance of those products and materials; the success of our recent R&D initiative to expand the DDM capabilities of our core FDM technology; and the success of our RedEye On DemandTM and other paid parts services. Actual results may differ from those expressed or implied in our forward-looking statements. These statements represent beliefs and expectations only as of the date they were made. We may elect to update forward-looking statements, but we expressly disclaim any obligation to do so, even if our beliefs and expectations change. In addition to the statements described above, such forward-looking statements include the risks and uncertainties described more fully in our reports filed or to be filed with the Securities and Exchange Commission, including our annual reports on Form 10-K and quarterly reports on Form 10-Q.

Source: Stratasys, Inc.

RedEye On Demand
Ruth Jacques, 952-294-3420
Senior Marketing Specialist
Investor Contact:
Stratasys, Inc.
Shane Glenn, 952-294-3416

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