PRESS RELEASE

Dec. 06, 2007

RedEye announces global expansion

Stratasys business unit to open doors with RedEye European location

Frankfurt Main, Germany (Dec. 6, 2007)- RedEye™ today announced the opening of its new European rapid prototyping and direct digital manufacturing center in Leuven, Belgium.

"We are excited about the opportunity to internationally expand our technology," said Jeff Hanson, manager of business development for RedEye. "Many of our US customers are realizing the true competitive benefits we can provide. We look forward to helping our European customers reap the same successes."

RedEye is a business unit of Stratasys - a leader in rapid prototyping technology that developed Fused Deposition Modeling, an additive fabrication process that uses production-grade thermoplastic materials. RedEye shipped a total of 12 FDM systems to date, to its European location hosted by Materialise, a European leader for rapid prototyping and manufacturing services.

"Since 2004, Materialise has been offering FDM to the European market. In this time, we have produced over 20,000 components, to the great satisfaction of our customers," says Bart Van der Schueren, director of Materialise' Industrial Services division. "We are looking forward to expand this success to a larger group of European customers."

From its Belgium digital manufacturing center, RedEye will process orders for countries throughout Europe. RedEye can build thermoplastic models and parts in virtually any size. The maximum build dimensions of the systems are 600x500x600 mm (23.6 x 19.7 x 23.6 inch), but the capacity allows customers to build bigger prototypes using multiple systems and then assemble the parts to construct larger prototypes, such as a full scale commercial aircraft landing gear, ATM enclosures and automobile panels.

About RedEye
RedEye, a business unit of Stratasys, Inc., is the world's largest provider of rapid prototyping and direct digital manufacturing services. With more than 80 systems in its facilities, RedEye produces low-volume models and functional parts made from one of the largest selections of thermoplastic materials available for rapid prototyping, such as ABS, polycarbonate, ISO-certified PC and more. From digital files, RedEye builds models and parts of any size, while maintaining design accuracy, and allows for multiple iterations throughout the design process. For instant online quoting or more information, visit RedEye On Demand.

About Materialise
The Materialise Group is best known for its activities in the field of rapid industrial and medical prototyping and manufacturing. Apart from having the largest and most diverse capacity of rapid prototyping equipment in Europe, Materialise enjoys a worldwide reputation as provider of innovative software applications for enabling and optimizing the advanced use of rapid prototyping, tooling and manufacturing techniques.

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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.

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For more information, contact:
Ruth Jacques
RedEye
952-294-3420
Ruth.Jacques@redeyeondemand.com

Investor Contact:
Shane Glenn
Stratasys, Inc.
(952)294-3416
sglenn@stratasys.com

Griet VanWesemael
Materialise
Marketing Manager Industrial Services
Materialise
+32-16 39 66 11
Griet.VanWesemael@materialise.be