PRESS RELEASE

May 21, 2008

RedEye and Alibre partner to offer instant rapid prototyping quotes from Alibre Design

Orlando (May 21, 2008) —  RedEye (www.redeyerpm.com), a business unit of Stratasys (NASDQ: SSYS), and Alibre, Inc. (www.alibre.com) today announced — from the RAPID show in Orlando — a new partnership that enables users of Alibre Design 3D CAD software to obtain instant quotes for designs using RedEye's Web-based quoting system.

As part of the partnership, RedEye created a software add-on for Alibre Design that generates instant quotes for parts and assemblies directly inside the Alibre Design interface. In addition, designers securely can transmit the design to RedEye to build after receiving a quote. The quotes are based on services offered by RedEye, which houses nearly 100 additive fabrication systems in its facilities worldwide, most of which are fused deposition modeling® systems manufactured by Stratasys.

"Designers now have direct access to prototypes and custom manufactured parts that can be made and shipped to them in a matter of days," says Tim Thellin, RedEye product manager. "This add-on offers a simple, direct connection for designers to get quotes instantly without having to upload files to our Web site."

Alibre Design, part of Alibre's Personal CAD/CAM™ family of integrated 3D parametric design and manufacturing products, supports the industry standard .STL output for rapid prototyping and manufacturing, which closely integrates with RedEye's online, instant quoting system. Alibre will create and offer, as a free download, a special version of its 3D parametric design product, Alibre Design Xpress, which will include RedEye's instant quoting add-on.

"Alibre is all about breaking down the barriers to 3D and empowering the individual to innovate," says Greg Milliken, CEO of Alibre. "RedEye is the perfect partner to help us extend that vision.  You don't have to be a big company or have a big budget to take advantage of our complementary technologies," he continues. "In fact, starting with our free Alibre Design Xpress software and the affordable services from RedEye, anyone with a good idea can be an inventor or an entrepreneur."

RedEye accepts files in .STL format and builds prototypes and parts in 8 different thermoplastic materials ranging from ABS blends to a high heat and chemical resistant PPSF. The partnership between RedEye and Alibre simplifies the product development cycle for designers from creation through purchasing prototypes and parts.

About RedEye

RedEye by Stratasys, Inc. provides rapid prototyping and direct digital manufacturing services worldwide. With nearly 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 and a high heat and chemical resistant polyphenylsulfone. From digital 3D CAD files, RedEye builds durable, functional and repeatable models and parts. For instant online quoting or more information, visit redeyerpm.com.

About Alibre, Inc.

Alibre, Inc., the Personal CAD/CAM™ Company, develops and markets Alibre Design™, the fastest growing 3D parametric solid modeling software for mechanical design and manufacturing. Alibre CAM™ extends Alibre Design to offer integrated parametric 2½— to 5-axis CNC machining. At one-fifth the cost of comparable software, Alibre Design and Alibre CAM are easy to use with rich functionality and world-class support and training, making professional 3D CAD/CAM "tools of the trade" accessible to every engineer, designer, machinist, or inventor. Alibre also offers Alibre Design Xpress and Alibre CAM Xpress, the industry's only true 3D parametric modeler and integrated CAM system available free of charge. Alibre products are available in fifteen languages and distributed worldwide. Founded in 1997, Alibre Inc. is privately funded and based in Richardson, Texas. For more information or a free trial, please visit www.alibre.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.RedEyeRPM.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: