PRESS RELEASE

June 28, 2007

NEXT DAY SERVICE FOR PROTOTYPES & PARTS AT REDEYE
Overnight Build Promises Faster Design Validation, Improved Time-To-Market

MINNEAPOLIS, June 28 — RedEye (www.RedEyeOnDemand.com), a business unit of Stratasys, Inc. (NASDAQ: SSYS), raised the bar today in the rapid prototyping and manufacturing industry with the launch of Overnight Build™ next day shipment, the first in a series of new production services the company will introduce for product development engineers and managers.

“Product manufacturers are under constant pressure to bring better products to market faster,” says product manager Tim Thellin. “Overnight Build™ will deliver the working prototypes they need  to quickly adjust and validate designs and meet product release dates.”

Overnight Build ships production-grade ABS plastic parts the day after an order is received and approved, serving as an extension of an organization’s in-house prototyping capability or as a preferred partner for outsourced parts.

From RedEye’s Web site, users can obtain an instant price quote for parts that qualify for Overnight Build based on criteria such as size, quantity, run time and geometry. Orders placed before 4 p.m. ET Monday through Thursday will qualify for next day shipment. Initially, parts will be available in ABS white, with additional material options planned later in the year.

“Overnight Build is the first  of several new value-added services we will introduce in coming months under the service banner RedEye Premium,” says Thellin. “Our goal is to raise the bar in rapid prototyping and direct digital manufacturing with continued innovation both in materials, technologies and service.”

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, manufactures prototyping and direct digital manufacturing systems and 3D printers, and it offers prototype and part manufacturing services. According to Wohlers Report 2007, Stratasys supplied 41 percent of all systems installed worldwide in 2006, making it the unit market leader, for the fifth consecutive year. Stratasys owns the rapid prototyping process known as fused deposition modeling (FDM). The process creates functional prototypes 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, and consumer product industries. On the Web: www.Stratasys.com.

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Forward Looking Statement
All statements herein that are not historical facts or that include such words as “expects”, “anticipates”, “projects”, “estimates” 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 claim 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™ line, Prodigy Plus, FDM Maxum™, FDM Vantage™, and Titan™ product 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 PC-ABS and the market acceptance of this and other materials; the impact of competitive products and pricing; the timely development and acceptance of new products and materials; our ability to effectively and profitably market and distribute the Arcam product line; the success of our recent R&D initiative to expand the rapid manufacturing capabilities of our core FDM technology; the success of our RedEye™  and other parts services; and the other risks detailed from time to time in our SEC Reports, including the annual report on Form 10-K for the year ended December 31, 2006 and 10-Q filed throughout 2007.

This release is also available on the Stratasys Web site at www.Stratasys.com.

Attention Editors: If you wish to publish reader-contact information, please use: GoDigital@redeyeondemand.com, 1-866.882.6934, www.RedEyeOnDemand.com

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Investor Contact:

Shane Glenn
(952) 294-3416
sglenn@stratasys.com

Editorial Contact:

Ruth Jacques
RedEye
952-294-3420
Ruth.Jacques@redeyeondemand.com