3D Systems Acquires Eos

From: Yakov Horenstein (yakov@planet.it)
Date: Thu Aug 28 1997 - 23:45:59 EEST

[Note: nothing here about 3D's sintering patents going to Eos]

>3D Systems Acquires Rapid Prototyping Business from EOS GmbH of
> Germany
> EOS GmbH Sells `Stereos' Product Line
> VALENCIA, Calif., Aug. 28 /PRNewswire/ - 3D Systems Corporation
> (Nasdaq-NMS: TDSC) announced today that it agreed to acquire the
> rapid prototyping "Stereos" product line and business from EOS GmbH
> of Germany, 3D's major European competitor.
> Additionally, 3D stated that under the terms of the agreement
> it would settle all patent infringement and unfair competition
> lawsuits brought in 1993 and 1994 against EOS and an EOS customer,
> as well as all patent-office proceedings between the two companies.
> 3D will pay $3.25 million dollars, subject to certain
> adjustments based on final determination of the value of the assets
> acquired, issue a warrant to buy 150,000 of 3D's common shares at
> $8.00 a share within the next three years, and grant exclusive
> licenses to 3D patents relating to laser sintering.
> The agreement is subject to due diligence prior to closing,
> expected within 10 days.
> 3D stated that it expects to recognize approximately $2 million
> of the purchase price and $350,000 in European restructuring
> expenses during the current, third quarter ending Sept. 26.
> "We are pleased to acquire the EOS Stereos business on what we
> regard as favorable terms," stated Arthur B. Sims, 3D's chairman
> and chief executive officer. "This transaction should
> significantly strengthen our strong and growing position in Europe
> while eliminating the potential expense and distraction of
> litigation."
> The EOS Stereos product line is based on stereolithography
> technology, which was introduced by 3D in the mid-1980's. In EOS'
> most recent fiscal year ended Sept. 30, 1996, Stereos-related sales
> amounted to approximately $6 million, or approximately 40 percent
> of EOS' rapid prototyping sales. EOS will continue to manufacture,
> sell and service rapid prototyping products based on laser
> sintering technology.
> Sims added, "Apart from the financial aspects of this
> transaction, we are excited over the opportunity to serve the
> Stereos customer base of more than 70 installations with enhanced
> systems, maintenance services and supplies. We will be moving
> swiftly to assimilate this operation into our existing European
> business. It is our expectation that this acquisition will be
> accretive to earnings within a quarter or two."
> 3D Systems currently serves the European market through direct
> sales offices in Germany, France and the United Kingdom with a
> total of 82 sales, service and administrative employees. In 1996,
> 3D Systems reported European revenues of $21.6 million, and
> currently has more than 200 rapid prototyping installations in
> Europe.
> 3D Systems develops, manufactures and markets solid-imaging
> systems that substantially reduce the time and costs of bringing
> new products to market by quickly fabricating mechanical parts
> after they are designed by engineers using computer systems. Major
> applications include rapid prototyping and tooling for products in
> a variety of manufacturing industries, including automotive,
> aerospace, medical, computer, electronic and consumer products.
> For current investor information, please call our shareholder
> communications service at 800-757-1799 or visit our Web site at
> http://www.3dsystems.com.
> SOURCE 3D Systems Corporation
> -0- 08/28/97
> /CONTACT: A. Sidney Alpert, Vice President, General Counsel,
> 805-295-5600,
> Ext. 2215; or Eugen J. Geyer, Vice President, 3D Systems Europe,
> +49 615-13-57100; or Mary E. Woods, Investor Relations, 805-295-
> 5600
> Ext. 2508/
> (TDSC)

Yakov Horenstein
Milano, Italy

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