FW: Message to 3D Systems and DTM customers

From: JP Harrison (jharrison@3de.net)
Date: Sat Aug 25 2001 - 00:24:23 EEST

Message to 3D Systems and DTM customers-----Original Message-----
From: Editor [mailto:Editor@3DSystems.Com]
Sent: Friday, August 24, 2001 6:50 AM
Subject: Message to 3D Systems and DTM customers

To 3D Systems and DTM customers:

We'd like to inform you of two important issues that are taking place with
3D Systems and DTM.

First is the termination of our exclusive development and distribution
relationships with Vantico Inc. We're also announcing that we've agreed to
acquire RPC Ltd., a supplier of stereolithography resins. The news release
below provides further details, or you can click on the following link for
more information.


Secondly, attached you'll find a letter explaining how the 3D Systems/DTM
merger is expected to progress and how it will affect our customers. If
you're unable to open the file, please reply to this e-mail.

If you have any questions, please send an e-mail to moreinfo@3dsystems.com
or phone (888) 337-9786 or (661) 295-5600, extension 2882.

3D Systems Corp.


3D Systems and Vantico Terminate Relationship; 3D Systems Agrees to Acquire
RPC Ltd.

VALENCIA, Calif., Aug. 24, 2001 - 3D Systems Corp. (Nasdaq: TDSC) today
announced the severance of its distributor and joint development agreements
with Vantico Inc., a subsidiary of Vantico International. 3D Systems has
been the exclusive worldwide distributor (except for Japan) of Vantico
liquid resins used in stereolithography systems.

Under the terms of the distributor agreement, 3D Systems will continue to
distribute Vantico resins for a period of six months. After that period,
the distribution agreement will no longer limit 3D Systems from sourcing and
developing resins independently.

3D Systems' termination of the joint development agreement with Vantico will
prohibit the two companies from exploiting, for a period of three years, any
proprietary information owned or developed by the other party. However, the
parties dispute the meaning and impact of this provision, and, though
conversations between the parties continue, arbitration proceedings have
begun regarding this matter.

3D Systems believes a significant portion of the Vantico resins currently
used in 3D Systems machines were developed and enhanced by 3D Systems and
that its proprietary information is pervasive in a substantial portion of
Vantico's products currently being manufactured, as well as those under
development. As a result, 3D Systems believes that Vantico would be
prevented from separately marketing those products, unless the companies
reach a subsequent agreement.

"These developments present a great opportunity for 3D Systems to further
enhance the materials currently used in our systems while maintaining our
existing base of materials recurring revenue," said Brian K. Service, 3D
Systems' president and chief executive officer. "During this transition
period and beyond, we expect to continue to provide quality materials to our
customers and further position ourselves to be a much stronger supplier of
materials in the future.

"We will continue to be the exclusive distributor of Vantico materials for
the next six months and may arrange with Vantico to continue to distribute
its materials beyond that time," Service added. "We believe that we will
continue to be able to offer our customers a full range of materials that
are either substitutable or offer improved speed, accuracy, surface finish
and functionality. It is our goal to provide as smooth a transition to our
customers as possible."

3D Systems also announced it has signed a letter of intent to acquire Rapid
Prototyping Chemicals (RPC) Ltd. of Marly, Switzerland. RPC is an
independent supplier of stereolithography resins.

"We are excited about adding RPC's materials offerings to the 3D Systems
family of solid imaging products," said Grant Flaharty, senior vice
president of worldwide sales and marketing for 3D Systems. "This proposed
acquisition reflects our focus on materials versatility and our commitment
to providing the best solid imaging solutions for our customers.

"RPC offers a wide range of materials that have been well received in the
market. Our intention is to continue this trend and further enhance the
synergy of our systems and materials," Flaharty said.

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 7000
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 it acquired
OptoForm, a French company that has developed direct composite manufacturing
systems that use paste materials. In April 2001, the company announced the
signing of a definitive merger agreement to purchase DTM Corp., and it
expects to complete the merger this month.

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

About DTM Corporation

DTM develops, manufactures and markets advanced rapid prototyping and
manufacturing systems, including the Sinterstation® 2500plus and Vanguard
systems. A growing number of manufacturers and service bureaus worldwide
use these systems to rapidly create 3-D prototypes, parts, molds, tooling
and casting patterns.

All Sinterstation SLS® systems utilize a process called selective laser
sintering to create 3-D objects from computer-aided design (CAD) data. The
Sinterstation system creates the part in a matter of hours using a CO2 laser
to fuse together layers of powdered plastic, metal or ceramic powders. The
results are durable 3-D parts produced in a fraction of the time it would
typically take using other traditional methods.

Among the companies currently using Sinterstation systems are manufacturers
such as BMW, Boeing, Pitney Bowes, Rockwell International, Volvo Penta and
others. In addition, numerous service bureaus throughout the world include
Sinterstation systems in their offerings to companies with only an
occasional need for rapidly produced functional prototypes and parts. Parts
and prototypes made on Sinterstation systems also are used in non-industrial
settings, such as science and medicine. For more information on DTM's
systems, customers and applications, visit the company's website at

About RPC

Based in Marly, Switzerland, RPC develops and distributes a complete range
of materials used in SLA solid imaging systems. Since its founding in 1997,
the company's R&D efforts have concentrated on thermosetting and
photopolymer materials as well as laser technology. The company has
introduced 13 resins for all three laser configurations on the SLA machines
and anticipates a 7% to 10% market share this year for its materials. For
more information, visit www.rpc.ch.

Note to editors: ThermoJet, SLA, Keltool and the 3D logo are registered
trademarks of 3D Systems. Sinterstation and SLS are registered trademarks,
and DuraForm and Vanguard are trademarks, of DTM Corporation.

Certain statements in this news release may include forward-looking
statements which express the expectation, prediction, belief or projection
of 3D Systems. These 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 and adversely
different from any future results, performance or achievement expressed or
implied by these 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: the funding of amounts of capital adequate to provide
for the working capital needs of the company; actions of competitors and
customers; reliance on single or limited suppliers, the ability to timely
and cost-effectively identify and obtain or independently develop resins
adequate for use with 3D Systems' products, the negotiation and execution of
definitive documents to acquire RPC, the efficient integration of DTM into
the business of 3D Systems, and such other factors as are described in the
companies' filings with the Securities and Exchange Commission, including
annual reports on Form 10-K for the year ended Dec. 31, 2000, quarterly
reports on Form 10-Q for the quarters ended March 31 and June 30, 2001, and
3D Systems' current reports on Form 8-K filed on April 6 and April 10, 2001.

For more information about the rp-ml, see http://rapid.lpt.fi/rp-ml/

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