PRESS RELEASE

April 27, 2007

RedEye Outlines Direct Digital Manufacturing Impact and Opportunity for Manufacturers Worldwide

White Paper Series Says Direct Digital Manufacturing May Be the Next Industrial Revolution

MINNEAPOLIS--(BUSINESS WIRE)--April 27, 2007--(NASDAQ:SSYS) RedEye, a business unit of Stratasys, Inc., today released a series of white papers that uncover the vast benefits of direct digital manufacturing (DDM), a process that employs rapid prototyping methods to produce cost-effective, production-grade thermoplastic, end-use parts faster.

According to the papers authored by T.A. Grimm & Associates - an independent consulting firm that focuses on rapid prototyping and reverse engineering - DDM may be heralded as the next industrial revolution because it will change fundamental business processes within manufacturing organizations.

"When companies implement DDM, they will realize profit improvement, process acceleration, continuous product improvement and scrap reduction from the newfound ability to freely redesign a product at any stage in its lifecycle," writes Todd Grimm, president of T.A. Grimm and Associates.

"Freedom to Redesign," the first of three white papers in the "Direct Digital Manufacturing Impact and Opportunity" series, explores the explicit and hidden benefits of DDM. The paper also addresses the elusive equation of return on investment for DDM applications.

Part two in the series, "Freedom of Design," explores the opportunities created when parts and assemblies are no longer constrained by design or manufacturability rules.

The third paper, "Bridge to Production," explains how DDM can serve as an alternative to accelerate product launches and meet production schedules when design issues are discovered or tooling is delayed.

The papers, available at www.RedEyeOnDemand.com, are authored by Todd Grimm, founder and president of T.A. Grimm & Associates. Grimm is a renowned expert in the areas of rapid prototyping and rapid manufacturing. He has 17 years of product development experience and has authored dozens articles for manufacturing trade publications.

For more information about RedEye's rapid manufacturing services, go to www.RedEyeOnDemand.com.

RedEye, a business unit of Stratasys, is the world's largest provider of rapid prototyping and direct digital manufacturing services. With more than 80 systems in its facilities, RedEye is the source for low-volume, high quality models and working parts made from one of the largest selections of thermoplastic materials available, such as ABS, polycarbonate, ISO certified and more. From digital files, RedEye quickly builds models and parts of any size, while maintaining precise design accuracy and allows for multiple iterations throughout the design process. Get a secure instant quote from your 3D CAD files now. On the Web: www.RedEyeOnDemand.com

Stratasys Inc., Minneapolis, makes 3D printing, rapid prototyping and direct digital manufacturing systems. In 2005, the company installed 34 percent of all systems sold worldwide, making it the unit market leader for the fourth consecutive year, according to Wohlers Report 2006. Stratasys owns the rapid prototyping process known as fused deposition modeling (FDM(R)). The process creates functional prototypes or parts directly from any 3D CAD program using ABS plastic, polycarbonate, PPSF or other materials. Stratasys equipment is used in industries such as aerospace, automotive, defense, medical, and consumer products. The company holds 180 granted or pending global prototyping patents. In addition to manufacturing products, Stratasys is the exclusive North American distributor of Arcam rapid manufacturing and prototyping systems. On the Web: www.Stratasys.com

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CONTACT: Stratasys, Inc.
Editorial Contact:
Ruth Jacques
RedEye
952-294-3420
Ruth.Jacques@redeyeondemand.com
or
Investor Contact:
Shane Glenn, 952-294-3416
sglenn@stratasys.com