3D Systems Reports Higher Revenue and Improved Operating Results for Second Quarter and First Six Months 2007

Operating Highlights Second Quarter and First Six Months of 2007 ($ in millions except for per share amounts) -------------------------------------------------------------
--------- Second Quarter First Six Months -------------------------------------------------- Operating Highlights 2007 2006 % Change 2007 2006 % Change ---------------------------------------------------------------
------- Revenue $ 36.4 $ 27.1 34%$ 73.4 $ 60.8 21% ------------------------------------------------------------------
---- Gross profit $ 13.5 $ 5.8 131%$ 29.4 $ 19.4 51% % of Revenue 37% 22% 40% 32% ------------------------------------------------------------------
---- Operating expenses $ 18.4 $ 16.2 14%$ 36.4 $ 31.1 17% % of Revenue 51% 60% 50% 51% ------------------------------------------------------------------
---- Operating income (loss) ($4.9) ($10.3) 52% ($7.0) ($11.7) 40% ------------------------------------------------------------------
---- Net income (loss) available to common stockholders ($5.3) ($11.5) NM ($8.4) ($13.5) NM -------------------------------------------------------------------
--- Diluted income (loss) per share available to common stockholders ($0.27) ($0.71) NM ($0.44) ($0.85) NM -------------------------------------------------------------------
--- Unrestricted cash $ 29.2 $ 13.0 124%$ 29.2 $ 13.0 124% -----------------------------------------------------------------
----- Depreciation and amortization $ 1.8 $ 1.8 NM $ 3.6 $ 3.4 6% % of Revenue 5% 7% 5% 6% -------------------------------------------------------------------
--- Columns may not add due to rounding NM=not meaningful

3D SYSTEMS CORPORATION Condensed Consolidated Statements of Operations Three Months and Six Months Ended June 30, 2007 and June 30, 2006 (in thousands, except per share amounts) Three Months Ended Six Months Ended June June 30, 30, --------------------- --------------------- 2007 2006 2007 2006 ----------- --------- ----------- --------- (Unaudited) (Unaudited) Revenue: Products $27,591 $ 18,933 $56,150 $ 43,185 Services 8,835 8,198 17,208 17,589 ----------- --------- ----------- --------- Total revenue 36,426 27,131 73,358 60,774 Cost of sales: Products 15,864 14,490 29,928 27,500 Services 7,083 6,805 14,048 13,833 ----------- --------- ----------- --------- Total cost of sales 22,947 21,295 43,976 41,333 ----------- --------- ----------- --------- Gross profit 13,479 5,836 29,382 19,441 ----------- --------- ----------- --------- Operating expenses: Selling, general and administrative 14,872 10,910 29,764 20,967 Research and development 3,528 2,974 6,615 6,231 Restructuring costs - 2,280 - 3,918 ----------- --------- ----------- --------- Total operating expenses 18,400 16,164 36,379 31,116 ----------- --------- ----------- --------- Loss from operations (4,921) (10,328) (6,997) (11,675) Interest expense and other, net 559 158 1,245 325 ----------- --------- ----------- --------- Loss before provision for income taxes (5,480) (10,486) (8,242) (12,000) Provision for (benefit of) income taxes (177) 39 181 62 ----------- --------- ----------- --------- Net loss (5,303) (10,525) (8,423) (12,062) Preferred stock dividends - 1,003 - 1,414 ----------- --------- ----------- --------- Net loss available to common stockholders $(5,303) $(11,528) $(8,423) $(13,476) =========== ========= =========== ========= Shares used to calculate basic and diluted net loss available to common stockholders per share (1) 19,361 16,324 19,240 15,851 =========== ========= =========== ========= Basic and diluted net loss available to common stockholders per share (1) $ (0.27) $ (0.71) $ (0.44) $ (0.85) =========== ========= =========== ========= (1)See Schedule 1 for the calculation of basic and diluted net loss available to common stockholders per share.

3D SYSTEMS CORPORATION Condensed Consolidated Balance Sheets June 30, 2007 and December 31, 2006 (in thousands) 2007 2006 ------------------- (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 29,173 $ 14,331 Accounts receivable, net 26,150 34,513 Inventories, net 25,218 26,114 Prepaid expenses and other current assets 4,720 6,268 Deferred income tax assets 574 748 Restricted cash - short-term 1,200 1,200 Assets held for sale, net 3,454 3,454 --------- --------- Total current assets 90,489 86,628 Property and equipment, net 22,776 23,763 Intangible assets, net 5,571 6,602 Goodwill 46,922 46,867 Other assets, net 2,227 2,334 --------- --------- $167,985 $166,194 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Bank credit facility $ 8,200 $ 8,200 Industrial development bonds related to assets held for sale 3,435 3,545 Current portion of capitalized lease obligations 175 168 Accounts payable 17,280 26,830 Accrued liabilities 11,300 12,577 Customer deposits 1,517 6,510 Deferred revenue 12,517 11,463 --------- --------- Total current liabilities 54,424 69,293 Long-term portion of capitalized lease obligations 8,755 8,844 Convertible subordinated debentures 14,845 15,354 Long-term income tax payable 921 - Other liabilities 3,297 3,034 --------- --------- Total liabilities 82,242 96,525 --------- --------- Stockholders' equity: Common stock, authorized 60,000 shares, issued and outstanding 20,635 (2007) and 19,085 (2006) 21 19 Additional paid-in capital 157,927 132,566 Treasury stock, at cost; 40 shares (2007) and 28 shares (2006) (100) (89) Accumulated deficit in earnings (74,086) (64,455) Accumulated other comprehensive net income 1,981 1,628 --------- --------- Total stockholders' equity 85,743 69,669 --------- --------- $167,985 $166,194 ========= =========

3D SYSTEMS CORPORATION Condensed Consolidated Statements of Cash Flows Six Months Ended June 30, 2007 and June 30, 2006 (in thousands) Six Months Ended June 30, --------------------- 2007 2006 ----------- --------- (Unaudited) Cash flows from operating activities: Net loss $(8,423) $(12,062) Adjustments to reconcile net income to net cash used in operating activities : Provision for deferred income taxes (149) 62 Depreciation and amortization 3,647 3,414 Provision for bad debts (28) 349 Adjustments to inventory reserves 475 (101) Stock-based compensation expense 1,660 1,336 Loss on disposition of property and equipment - (96) Changes in operating accounts: Accounts receivable 8,591 3,241 Lease receivable - 69 Inventories (294) (7,310) Prepaid expenses and other current assets 1,587 10 Other assets 149 401 Accounts payable (9,571) 4,268 Accrued liabilities (1,384) (1,104) Customer deposits (4,993) 989 Deferred revenue 965 (1,487) Other liabilities 176 (54) ----------- --------- Net cash used in operating activities (7,592) (8,075) ----------- --------- Cash flows from investing activities: Purchase of property and equipment (417) (3,453) Proceeds from sale of property and equipment - 248 Additions to licenses and patents (262) (226) Software development costs (300) (298) ----------- --------- Net cash used in investing activities (979) (3,729) ----------- --------- Cash flows from financing activities: Stock option and restricted stock proceeds 2,621 1,948 Proceeds from issuance of stock 20,562 - Payments of preferred stock dividends - (785) Repayment of long-term debt (176) (103) ----------- --------- Net cash provided by financing activities 23,007 1,060 Effect of exchange rate changes on cash 406 (584) ----------- --------- Net increase (decrease) in cash and cash equivalents 14,842 (11,328) Cash and cash equivalents at the beginning of the period 14,331 24,328 ----------- --------- Cash and cash equivalents at the end of the period $29,173 $ 13,000 =========== ========= Supplemental Cash Flow Information: Interest payments $ 786 $ 755 Income tax payments 791 816 Non-cash items: Conversion of 6% convertible subordinated debentures 509 250 Conversion of Series B convertible preferred stock - 15,240 Adjustment for FIN 48 adoption 1,208 - Accrued dividends on preferred stock - 1,003 Transfer of equipment from inventory to property and equipment, net 945 846 Transfer of equipment to inventory from property and equipment, net 322 304

Schedule 1 Following is a reconciliation of the numerator and denominator of the basic and diluted net loss available to common stockholders per share computations: Three Months Ended Six Months Ended June June 30, 30, --------------------- --------------------- 2007 2006 2007 2006 ----------- --------- ----------- --------- (Unaudited) (Unaudited) Basic and diluted(1) net loss available to common stockholders per share: Numerator: Net loss available to common stockholders $(5,303) $(11,528) $(8,423) $(13,476) =========== ========= =========== ========= Denominator: Weighted average common shares outstanding 19,361 16,324 19,240 15,851 =========== ========= =========== ========= Basic and diluted net loss available to common stockholders, per share $ (0.27) $ (0.71) $ (0.44) $ (0.85) =========== ========= =========== ========= (1)For the three month and six month periods ended June 30, 2007 and June 30, 2006, potentially dilutive common stock equivalents including stock options, stock awards and convertible subordinated debentures either outstanding or issuable during the period(s) presented amounting to 2,119 and 2,107, respectively, compared to 2,997 and 3,038, respectively, were excluded from the computation of diluted net loss available to common shareholders per share, as their inclusion would have been anti-dilutive.