Strategic Acquisition Expands Direct Digital Manufacturing Vision

MINNEAPOLIS, May 3, 2011 - Additive manufacturing system maker Stratasys, (NASDAQ: SSYS), has acquired Solidscape, Inc. for $38 million plus certain purchase price adjustments.
New Hampshire-based Solidscape is a manufacturer of 3D printers serving investment casting applications in the jewelry, medical, dental and industrial markets. The company’s technology produces patterns that are used to cast highly precise metal parts.

Solidscape is widely recognized as the leader for casting applications that require high-precision, ultra-fine feature detail and a smooth surface finish. The company had revenues of $13.4 million and generated approximately $4.3 million in EBITDA for calendar year 2010.

"Solidscape is a strong, profitable company with an excellent reputation in the markets it serves," said Stratasys CEO Scott Crump. "We believe there is a significant market opportunity to expand its business in the under-penetrated jewelry market and the relatively undeveloped medical, dental and industrial markets. Solidscape’s 3D printers are used in the manufacturing process, which is consistent with our strategy to pursue new markets for direct digital manufacturing applications." 
Stratasys will support Solidscape product development with the goal of producing systems that target new applications. Solidscape will operate from its base in New Hampshire as a wholly owned subsidiary of Stratasys. Solidscape leadership and management will stay with the company. Stratasys expects the acquisition of Solidscape will add approximately $0.04 per share to earnings in 2011.

"This agreement represents the joining of two well-established leaders in additive manufacturing," says Solidscape President Michael Varanka. "We believe Stratasys and Solidscape have valuable synergies, and the two companies will make a good partnership."

Stratasys, Inc ., Minneapolis, is a maker of additive manufacturing machines for prototyping and producing plastic parts. The company markets under the brands Fortus 3D Production Systems and Dimension 3D Printers. The company also operates RedEye On Demand, a digital manufacturing service for prototypes and production parts. According to Wohlers Report 2010, Stratasys supplied more additive manufacturing systems in 2009 than any other manufacturer, making it the unit market leader for the eighth 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 285 granted or pending additive manufacturing 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

Solidscape, Inc. is the leader in high-precision 3D printers for lost wax casting applications. Solidscape systems are used for modeling prototypes and casting patterns for fine jewelry, dental restorations, turbine blades, medical instruments, orthopedics, consumer goods, electronics and many other high-precision products.