3D Systems Announces Agreement in Principle with DSM Desotech Inc. to Settle German Patent Litigation

Business Wire, Jan 11, 2006

VALENCIA, Calif. -- 3D Systems Corporation (Nasdaq:TDSC), a leading provider of rapid 3-D printing, prototyping and manufacturing solutions, announced today that it has reached an agreement in principle with DSM Somos, an unincorporated division of DSM Desotech Inc. and affiliate of DSM NV, to settle the patent litigation currently pending between the two companies in Germany and to cross-license patents and other intellectual property relating to stereolithography materials.

As part of this settlement, DSM would grant to 3D Systems a non-exclusive worldwide license outside of Japan to patents relating to stereolithography materials and equipment, and 3D Systems would grant to DSM a non-exclusive worldwide license outside of Japan to patents and patent applications relating to stereolithography materials and the corresponding right to sell DSM stereolithography materials to users of 3D Systems' new Viper(TM) Pro SLA(R) systems under 3D Systems' patents, patent applications and other intellectual property relating to those systems.

The parties contemplate that their current distribution agreement, under which 3D Systems distributes DSM's stereolithography materials outside of Japan, will continue. While completion of this agreement in principle is subject to the negotiation, execution and delivery of a definitive agreement, both parties intend to commence commercial activities consistent with the proposed settlement immediately.

"We are pleased to be able to announce this agreement in principle and to begin marketing activities today," said Abe Reichental, 3D Systems' president and chief executive officer. "We believe that this new arrangement will benefit our stereolithography customers by enabling them to have access to an ever-broadening group of materials for rapid manufacturing and other applications. We are pleased to have been able to negotiate an arrangement which should be beneficial to both 3D Systems and DSM."

Jim Reitz, Somos(R) Business Manager for DSM Desotech, added, "This agreement allows both parties to fully focus on efforts to grow stereolithography technology to the benefit of the rapid prototyping and rapid manufacturing markets."

Forward-Looking Statements

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About 3D Systems Corporation

3D Systems is a leading provider of rapid 3-D printing, prototyping and manufacturing solutions. Its systems and materials reduce the time and cost of designing products and facilitate direct and indirect manufacturing by creating actual parts directly from digital input. These solutions are used for design communication and prototyping as well as for production of functional end-use parts: Transform your products.

More information on the company is available at www.3dsystems.com, or by phoning 888-337-9786, ext. 2882 (or 661-295-5600, ext. 2882 from outside the United States), or via email at moreinfo@3dsystems.com.