From: Yakov Horenstein (
Date: Tue Jan 19 1999 - 14:31:03 EET

Stratasys, Inc. Will Announce Record Revenues and Bookings; Backlog
Increases 270 Percent (Business Wire; 01/18/99)

EDEN PRAIRIE, MINN. (Jan. 18) BUSINESS WIRE -Jan. 18, 1999--

R&D Expenses Will Impact Earnings

Stratasys, Inc. (NASDAQ: SSYS) today announced that it will report record
revenues and bookings, as well as the largest backlog in the Company's
history for 1998, but the Company said that it expected fourth quarter and
year-end earnings to be lower than analysts' estimates.

Stratasys will report record revenues of approximately $32.4 million for
the year ended December 31, 1998, compared with revenues of $29.6 million
reported in 1997, a 9 percent increase.

The Company also said that dollar order bookings rose 19 percent over 1997
and sales order backlog for the year ended December 31, 1998 rose to a
record $3.7 million as compared to $1 million for 1997, a 270 percent

Stratasys, however, announced that it anticipates fourth quarter and full
year 1998 earnings will be lower than analysts' estimates due primarily to
lower than anticipated revenue and gross margin in the fourth quarter and
higher than anticipated R&D and selling expenses.

Scott Crump, Chairman and Chief Executive Officer, stated, "That although
Stratasys will report operating income for the fourth quarter and 1998
year- end, the recently announced acquisition of a new rapid prototyping
(RP) technology will create a one-time charge resulting in a full year loss
for 1998."

Mr. Crump went on to say, "Backlog is at the highest level in the Company's
history and the Company improved its profitability from its basic rapid
prototyping business in 1998 as compared to 1997. I am optimistic because
there is continuing demand for our full family of products worldwide."

The Company expects to report final fourth quarter and year-end results on
February 17, 1999.

Stratasys Inc. is a manufacturer of rapid prototyping systems for
automotive, aerospace, industrial, recreation, electronic, medical and
consumer products OEM's. The Company's patented Fused Deposition Modeling
(FDM) and Genisys rapid prototyping processes create 3-dimensional plastic
and wax prototype parts directly from 3-D CAD systems. The Company is
located at 14950 Martin Drive, Eden Prairie, Minnesota 55344-2020.

Except for the historical information herein, the matters discussed in this
news release are forward-looking statements that involve risks and
uncertainties, including the timely development and acceptance of new
products, the impact of competitive products and pricing, and the other
risks detailed from time to time in the Company's SEC Reports, including
the report on Form 10- KSB for the year ended December 31, 1997, and on
Form 10-QSB for the quarters ended June 30, 1998 and September 30, 1998.

This release is available on the Stratasys website at and
the KCSA Worldwide website at

-0- jc/ny*

CONTACT: STRATASYS, INC.(R) S. Scott Crump, Chairman and President

Tom Stenoien, Chief Financial Officer (612) 937-3000

or KCSA: Joseph A. Mansi/Jeffrey Corbin

(212) 896-1205/(212) 896-1214 (phones) (212) 697-0910 (fax) (e-mail)

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