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RedEye On Demand Broadens Low-Volume Manufacturing Capabilities with Addition of Cast Urethane Molding

Expanded capabilities support customers’ needs through the entire product development cycle

MINNEAPOLIS — (BUSINESS WIRE) — March 15, 2012 — RedEye On Demand, a rapid prototyping and direct digital manufacturing service provider, and business unit of Stratasys Inc. (NASDAQ: SSYS), today announced it has added cast urethane molding to its services offering. A complementary capability to RedEye On Demand’s existing Fused Deposition Modeling (FDM) and PolyJet services, the addition of cast urethane strengthens the company’s ability to support its customers’ rapid prototyping and manufacturing needs through the entire product development cycle.

“With pressure to decrease the time and costs associated with bringing a product to market, there is increased demand for suppliers with full-service production capabilities - particularly in the medical, automotive and heavy machinery industries,” said Richard Garrity, Stratasys vice president of RedEye On Demand. “With the addition of cast urethane services our customers will realize the benefits in time and money associated with utilizing one source for their conceptual 3D modeling, rapid prototyping and short-run production needs.”

Typically used to produce durable, short-run production components quickly, cast urethane molding is ideally suited for a wide range of materials for prototyping or end-use applications. A bridge between rapid prototyping and injection molding, cast urethane molding combines the durability of an FDM additive-manufactured part with the surface finish of a traditionally manufactured part.

Because of the urethanes’ ability to simulate thermoplastic material characteristics, such as heat deflection, impact strength and durometer, the technology is often used to produce parts for visual models in color and texture studies, product testing and verification, and low-volume production of fewer than 100 parts.

Additional RedEye On Demand services and applications include:

RedEye On Demand, by Stratasys, makes prototyping and the production of low-volume, complex parts fast and easy. RedEye assists engineers in all phases of product development from conceptual modeling to the production of end-use parts. As the leader in on-demand, 3D printing services and powered by the innovation of Stratasys, product developers rely on RedEye for the breadth and reach of its manufacturing technologies. These technologies include Fused Deposition Modeling (FDM), PolyJet and cast urethane molding. RedEye’s global distributive manufacturing network includes more than 125 additive manufacturing systems worldwide. Through its vast network, RedEye is able to streamline and expedite the development time for parts, reducing costs and time to market. Online at www.RedEyeOnDemand.com

Stratasys Inc., Minneapolis, is a maker of additive-manufacturing machines for prototyping and producing plastic parts. The company markets under the brands uPrint and Dimension 3D Printers and Fortus Production 3D Printers. Stratasys manufactures 3D printers for Hewlett Packard, which it sells under the brand Designjet3D. In 2011, Stratasys acquired 3D printer maker Solidscape Inc. According to Wohlers Report 2011, Stratasys had a 41-percent market share in 2010, and has been the unit market leader for the ninth consecutive year. Stratasys patented and owns the Fused Deposition Modeling (FDM®) process. 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 and industrial equipment, education, architecture, and consumer-product industries. Online at: www.Stratasys.com

RedEye, FDM, Stratasys, Fortus and Dimension are registered trademarks, and Redeye On Demand and FDM Technology are trademarks, of Stratasys Inc.

Attention Editors: If you wish to publish contact information, please use: Email Contact, 1-866-882-6934, www.RedEyeOnDemand.com.

Forward Looking Statements
All statements herein that are not historical facts or that include such words as "expects," "anticipates," "projects," "estimates," "vision," "could," "potential," "planning", "intends", "desires", "assume" 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(R) and uPrint(R) 3D Printers; our support removal systems; and our Fortus(R) 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; the success of our distribution agreement with HP; our ability to achieve the growth rates experienced in preceding quarters; our ability to introduce, produce and market consumable materials, and the market acceptance of these 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. They also include statements about future financial and operating results of our company after the acquisition of Solidscape and anticipated benefits of the acquisition. Actual results may differ from those expressed or implied in our forward-looking statements. Such forward-looking statements involve and are subject to certain risks and uncertainties, which may cause our actual results to differ materially from those discussed in a forward-looking statement. Such risk factors include our ability to successfully integrate and market Solidscape products, our ability to retain management and our ability to protect and defend intellectual property. 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 are subject to the risks and uncertainties described more fully in our current report on Form 8-K filed in connection with the completion of our acquisition of Solidscape and 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.



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