DTM made money again?

From: Trevor James (trevor_rp@hotmail.com)
Date: Wed Jul 21 1999 - 22:43:18 EEST

Subject: Second Quarter Earnings Press Release

Please see the following press release that went out this afternoon
(7/20/99). The complete release with accounting tables can be viewed on
our website at the following URL:



July 20, 1999 Geoff Kreiger +1.512.339.2922



Sequential earnings gain beats analysts? estimate; record second quarter
                       and first six month revenues

Austin, Texas: DTM Corporation (Nasdaq: DTMC) today announced net income

for the second quarter of 1999 was $295,000, or $0.04 per share on a fully

diluted basis. This is a substantial improvement from the second quarter of

1998 loss of $2,807,000, or $0.45 per share.

Net income for the first six months of 1999 was $569,000, or $0.09 per

share on a fully diluted basis. This is also a substantial improvement

from the first six months of 1998 loss of $4,141,000, or $0.66 per share.

Revenues were $15.6 million in the first six months of 1999, a 17.0%

increase from the $13.3 million in the first six months of 1998.

John Murchison, III, DTM?s President and CEO, stated ? We are very pleased

with our second quarter results. The net profit is a continuation of the

improvement in our operating trends that started in the fourth quarter of

1998. The second quarter 1999 is our third consecutive profitable quarter.

?Our revenues for the first six months of 1999 were 17% ahead of the first

six months of 1998 and are a record for any six-month period in the history

of the company. Gross margins were 53% in the second quarter compared to

32% in the second quarter of 1998 and were achieved in spite of a strong

dollar relative to European currencies and significant competitive

pressures in Europe. This was the third consecutive quarter where our

overall gross margins exceeded 50%. The improvement in our gross margins

over the past three-quarters is a result of continuing market acceptance of

new products launched by us over the past eighteen months and the lower

cost Sinterstation 2500plus introduced in September 1998. All three of our

major geographic markets ? North America, Europe and Pacific Rim ?

contributed to the Company performance in the second quarter.

?During the second quarter we continued to make progress in broadening the

market for our products. In March of 1999, we introduced CastForm, a

material that opens a new application for DTM by allowing our customers to

create complex patterns for investment casting applications by foundries.

We successfully qualified CastForm for investment casting applications at

45 foundries In North America and Europe during the second quarter.

?We are excited that our efforts have yielded significant improvements in

operating results for the first six months of this year. We believe our

performance in the first half of 1999 is evidence that our new and improved

products are allowing us to establish favorable market momentum.?*

Geoffrey W. Kreiger, DTM?s Chief Financial Officer, stated ?Our working

capital position has improved by approximately $3.3 million over the past

four quarters. During this latest quarter, the $909,000 liability to its

shareholder was satisfied. At June 30, 1999, DTM was debt free and had

available a new credit facility of $2.5 million from Silicon Valley Bank,

secured solely by the corporate assets of DTM. These were important

milestones in DTM?s progress as an independent company.?*

About DTM Corporation

DTM Corporation develops manufactures and markets the Sinterstation family

of rapid prototyping products for application in the rapid manufacturing

marketplace. The Sinterstation systems and materials are based on

proprietary and patented SLS selective laser sintering technology. The

Company?s products are used to accelerate the design, development and

market introduction of products in an expanding range of industries.

Forward Looking Statement and Safe Harbor Disclaimer

* Certain of the statements are forward-looking statements that involve
risks and uncertainties that could cause actual results to differ
materially. Such statements are subject to certain risks and uncertainties
that could cause actual results to differ materially and adversely from
those set forth in the forward-looking statements, including, without
limitation: the Company?s stock price and public float could cause its
stock to be delisted from the NASDAQ National Market, further reducing
liquidity; additional capital sufficient to finance the business may not be
available or if available might cause significant dilution; quarterly
fluctuations in operating results and the difficulty in predicting results
of operations may adversely affect stock prices; seasonality of customer
buying habits, principally a slower third quarter, may adversely affect
stock prices; reduced margins and loss of market share may occur as a
result of increasing competition; the Company?s dependence on a single
product that is priced at the high end of the range for today?s rapid
prototyping products has caused it to be adversely affected in a soft
market; DTM has significant international operations with the inherent
exposures; potential liabilities resulting from undetected errors or
defects in Company products; and the Company?s stock price could be
volatile, regardless of DTM?s financial performance.

The Company cautions that the foregoing list of important factors is not
exclusive. The Company does not undertake to update any written or oral
forward-looking statement that may be made from time to time by or on
behalf of the Company.

          Copyright 1999, DTMTM Corporation, all rights reserved.
DTM, SLS, Sinterstation, RapidSteel, DuraForm, CastForm, and SandForm are
               trademarks and registered trademarks of DTM.

                      For more information, contact:
                              DTM Corporation
          1611 Headway Circle, Building 2, Austin, TX, USA 78754
                Phone +1.512.339.2922; Fax +1.512.339.0634
                       email: marketing@dtm-corp.com

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