Stratasys Leads Additive Fabrication Industry for Seventh Consecutive Year

Revenue Growth in Proprietary Systems and Services Outpaces Industry by Over Four Times

MINNEAPOLIS--(BUSINESS WIRE)-- Stratasys, Inc. (NASDAQ: SSYS) today announced its seventh consecutive year as unit market leader in the additive fabrication (AF) industry, according to Wohlers Report 2009. Published by Wohlers Associates, Inc., the report offers a detailed review and analysis of additive fabrication technologies, applications and markets.

According to the report, Stratasys shipped over 43 percent of all systems worldwide in 2008, and it has the highest global installed base of additive systems: more than double that of its nearest competitor. The report also indicated that within the 3D printer segment of the AF industry, Stratasys shipped over 50 percent of all units in 2008.

Wohlers Report 2009 also indicated the general AF industry grew at a rate of 3.7% for 2008. In contrast, Stratasys revenue from proprietary products and services increased by 15% for 2008, outpacing the general industry by over four times.

The report indicated that within the AF market, direct digital manufacturing (DDM) -- the manufacture of end-use parts -- was one of the fastest-growing industry applications in 2008, representing approximately 16% of applications last year.

"We're committed to developing the market for direct digital manufacturing applications," says CEO Scott Crump. "These applications are providing incremental sales opportunities for our Fortus 3D Production Systems. We are optimistic about this emerging market's potential.

"As we expected, the report shows Stratasys continues to dominate the 3D printing market. It is a top strategic initiative for Stratasys to lead this technology segment. With our Dimension product line's recent introduction of the uPrint Personal 3D Printer at under $15,000, we expect to strengthen this leadership position.

"We've worked hard," says Crump. "It's gratifying to reach our seventh straight year in the top position. This kind of success cannot be achieved without committed strategic partners and an outstanding employee team."

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 2009, Stratasys supplied 43 percent of all additive fabrication systems installed worldwide in 2008, making it the unit market leader for the seventh consecutive year. Stratasys patented and owns the process known as FDM.^(R) The process creates functional prototypes and manufactured goods directly from any 3D CAD program, using high-performance industrial thermoplastics. The company holds more than 250 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. Online at: www.Stratasys.com

* ULTEM 9085 is a trademark of SABIC Innovative Plastics IP BV. FDM and Dimension are registered trademarks of Stratasys Inc.

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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^TM 3D printers and our Fortus^TM 3D production 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 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 RedEyeOnDemand^TM 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.

Released May 14, 2009