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Net income increased by 26% over prior year

3D Systems, Inc. yesterday announced record revenue of $27.9 million for the first quarter 2001. This compares with revenue of $23.0 million for the first quarter in the previous year, a 21.3% increase.

Net income was $1.4 million or 11 cents per fully diluted share compared with net income of $1.1 million or 9 cents per fully diluted share in the first quarter last year, an increase of 26.4%.

"Historically, the first quarter is our weakest. We are pleased to have met our targets for the quarter in the midst of the current challenging economic environment," stated Brian K. Service, president and chief executive officer. "We are entering the second quarter on track to meet our objectives for the year.

align=left border=0>"Sales of our SLA® systems were particularly strong as was revenue associated with the sale of materials. Overall SLA system revenues were more than 45% higher than in the first quarter of 2000. Material sales in the first quarter increased 25.5% over the prior year," Service added.

The increase in SLA system revenue is primarily driven by continued increase in the number of high-end systems sold, especially in the United States and Japan. Customers in mass customization applications utilize these high-end systems.

During the first quarter, the company announced the introduction of the Viper si2™ SLA system, which combines the versatility of high-end SLA machines with the affordability of entry-level systems. The Viper si2 system is the first from 3D Systems to offer standard and high-resolution build modes in one package.

"Subsequent to the end of the quarter, we announced plans to merge with DTM Corp. (Nasdaq: DTMC) of Austin, Texas," Service said. "We believe that this business combination - bringing together the two leading solid imaging companies - will enable us to rapidly penetrate the fast-developing market for mass customization, rapid tooling, and direct and indirect in-line manufacturing applications.
"We are excited by the opportunities that we believe the merger offers both companies. We are currently on track to complete this transaction in the second quarter as originally anticipated," Service concluded.

3D Systems will conduct a conference call today at 4 p.m. Eastern time to discuss the quarter. To access the call, dial 888/353-7307 or 212/271-4786 internationally. A recording of the call will be available for 48 hours beginning today at 6 p.m. Eastern time. To access the recording, dial 800/633-8284 or 858/812-6440 internationally and enter 18601483.

About 3D Systems
3D Systems provides solid imaging products and services that substantially reduce the time and cost required to design, test and manufacture products. The company's systems utilize patented technologies that create physical objects from digital input.

3D Systems currently offers the ThermoJet® office printer and SLA® industrial systems, which include proprietary software and materials. Product pricing in the U.S. begins at $49,995 for the company's entry-level printer and extends up to $799,000 for its feature-rich industrial SLA system. The company also licenses the 3D Keltool® process, a complementary application that produces injection molding and die casting inserts from SLA system master patterns. In February 2001, 3D Systems announced the acquisition of OptoForm SARL, a French company that developed stereolithography systems using paste materials. In April 2001, the company announced the signing of a definitive merger agreement to purchase DTM Corp., contingent on, among other conditions, obtaining adequate financing to complete the acquisition.

Based in Valencia, Calif., 3D Systems was founded in 1986 and is recognized as the world technology and market leader in solid imaging. For additional information, visit the company's website at www.3dsystems.com or phone 888/337-9786, ext. 767. For an investor packet, call the company's shareholder communications service at 800/757-1799.

Note to editors: ThermoJet, SLA, Keltool and the 3D logo are registered trademarks of 3D Systems.

A Tender Offer Statement on Schedule TO will be filed by 3D Systems with the Securities and Exchange Commission (SEC). DTM stockholders are urged to read the Tender Offer Statement and any other relevant documents to be filed with the SEC. The Tender Offer Statement and other documents filed with the SEC will contain important information that such stockholders should consider before making any decision regarding the tender offer and related transactions. DTM stockholders may obtain a free copy of the Tender Offer Statement and other documents filed by 3D Systems (and DTM) with the SEC at its web site: www.sec.gov. The Tender Offer Statement and other documents to be filed with the SEC by 3D Systems will be available free of charge from 3D Systems by directing a request to 3D Systems Corp., 26081 Avenue Hall, Valencia, CA, 91355.

Certain statements in this news release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance and achievement of 3D Systems to be materially different from any future results, performance or achievement expressed or implied by those forward-looking statements. Factors that may cause actual results to differ from the forward-looking statements contained in this release and that may affect the company's prospects in general include, but are not limited to: changes in general and industry-wide economic and business conditions, the availability of capital on acceptable terms, the availability of financing in an amount sufficient to commence the tender for the DTM shares, actions of competitors and customers, the impact of competitive products and pricing, the availability and acceptance of 3D Systems' products generally, the extent to which 3D Systems is able to develop new products and markets for its products, and other factors as described in 3D Systems' filings with the Securities and Exchange Commission, including its annual report on form 10-K for the year ended Dec. 31, 2000.

3D Systems, Inc., 26081 Avenue Hall, Valencia, CA 91355 USA. Tel: 661-295-5600, ext. 2886. Fax: 661-294-8406.

Source: 3D Systems