PRESS RELEASE

February 02, 2009

REDEYE ON DEMAND IS THE FIRST DIGITAL MANUFACTURING SERVICE PROVIDER TO OFFER ULTEM®

Promising new material for direct digital manufacturing and rapid prototyping

MINNEAPOLIS (February 2, 2009) – RedEye On Demand (www.redeyeondemand.com), a business unit of Stratasys (NASDQ: SSYS), today announced the addition of ULTEM®, a high-performance engineering thermoplastic material, for direct digital manufacturing applications. RedEye On Demand is the only service provider to offer this unique material in an additive fabrication process.

ULTEM is a strong, high temperature, chemically resistant thermoplastic that can be used across many industries for nearly any digital manufacturing project, from functional prototypes to jigs & fixtures to low volume production runs.

"We continually strive to offer materials that improve strength and endurance, positioning direct digital manufacturing as a real alternative to conventional manufacturing technologies such as: injection molding, extruding and blow molding. We are excited to be the first to provide additive fabrication ULTEM to our customers worldwide," says Tim Thellin, RedEye On Demand Product Manager.

ULTEM's unique properties will compliment the already diverse family of thermoplastics available at RedEye On Demand.

"The addition of ULTEM to our already extensive offering reinforces our commitment to provide the best products, technology and services," said Wayne Olson, Vice President, RedEye by Stratasys. "As we continue to grow our materials, we will also expand our capabilities to ensure that we continue to offer the best digital manufacturing services," added Olson.

About RedEye On Demand
RedEye On Demand by Stratasys, Inc., is the leading digital manufacturing provider of prototypes and production parts worldwide. With over 100 systems in its centers, RedEye builds functional models and low-volume production parts made from thermoplastic materials, such as ABS, polycarbonate, ISO-certified PC, polyphenylsulfone, and Ultem. From digital 3D CAD files, RedEye builds durable, functional and repeatable parts. For instant online quoting or more information, visit www.redeyeondemand.com.

Stratasys Inc., Minneapolis, manufactures office-based rapid prototyping and direct digital manufacturing systems, 3D printers and offers rapid prototyping and manufacturing parts services. According to Wohlers Report 2008, Stratasys supplied 44 percent of all systems installed worldwide in 2007, making it the unit market leader, for the sixth consecutive year. Stratasys developed the rapid prototyping process known as fused deposition modeling (FDM). The process creates functional models and end-use parts directly from any 3D CAD program using ABS plastic, polycarbonate, PPSF, and blends. The company holds over 180 granted or pending rapid prototyping patents globally. Stratasys products are used in the aerospace, defense, automotive, medical, education, electronic, architecture and consumer product industries. The company’s systems are also used for direct digital manufacturing (DDM) and rapid tooling applications. For more information on the company, go to www.Stratasys.com; www.DimensionPrinting.com; or 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", "planning" or "believes" or similar words are forward-looking statements that we deem to be covered by and to qualify for the safe harbor protection covered by the Private Securities Litigation Reform Act of 1995. Our belief that we have the largest part-building service is based on the number of dedicated machines. Except for the historical information herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties; these include the continued market acceptance and growth of our Dimension™ 3D printer and our FDM 200mc™ , 360mc™ , 400mc™ , 900mc™, Maxum™, Titan™, and Vantage™ productivity lines; the size of the 3D printing market; our ability to penetrate the 3D printing market; our ability to maintain the growth rates experienced in this and preceding quarters; our ability to introduce and market new materials such as ABS-Plus and ABS-M30; and the market acceptance of these and other materials; the impact of competitive products and pricing; the timely development and acceptance of new products and materials; the success of our recent R&D initiative to expand the direct digital manufacturing capabilities of our core FDM technology; the success of our RedEye™ and other paid parts services; and the other risks detailed from time to time in our SEC Reports, including the our quarterly reports filed on Form 10-Q throughout 2008; and our annual report on Form 10-K filed for the year ended December 31, 2007.

For more information, contact:

RedEye On Demand 
Ruth Jacques
Senior Marketing Specialist
952.294.3420
ruth.jacques@redeyeondemand.com

Investor Contact:
Shane Glenn 
Stratasys, Inc. 
952.294.3416 
sglenn@stratasys.com