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Stratasys Transitioning out of Eden Product Distribution in 2007


    Stratasys, Inc. (Nasdaq:SSYS) today announced it will
    discontinue the sale of Eden products on January 1, 2007. Stratasys
    intends to sell Eden products for the remainder of 2006, and will
    conduct maintenance until August of 2007 on the systems it has
    installed, ensuring a seamless transition for its customers. Objet
    Geometries will assume full responsibility for Eden sales beginning in
    2007. The Eden product line is currently distributed by Stratasys for
    Objet Geometries, based in Israel.
    "After evaluating our options to maintain the Eden product line
    within our family of high-end productivity systems, we have concluded
    that our best option is to discontinue the distribution of the product
    line beginning in 2007," said Scott Crump, chairman and chief
    executive officer of Stratasys. "This action is based on strategic and
    financial considerations.
    "Our intention is to provide a smooth transition for our
    customers, but going forward, we will focus our efforts on the many
    growth opportunities presented by our proprietary fused deposition
    modeling technology. This will include new products targeting 3D
    printing, traditional rapid prototyping, and the emerging market for
    rapid manufacturing," Crump concluded.
    Stratasys Inc., Minneapolis, manufactures office-based rapid
    prototyping and manufacturing systems and 3D printers; and offers
    rapid prototyping and manufacturing parts services. According to
    Wohlers Report 2006, Stratasys supplied 34 percent of all systems
    installed worldwide in 2005, making it the unit market leader, for the
    fourth consecutive year. Stratasys patented the rapid prototyping
    process known as fused deposition modeling (FDM). The process creates
    functional models directly from any 3D CAD program using ABS plastic,
    polycarbonate, and PPSF. The company holds 175 granted or pending
    rapid prototyping patents globally. Stratasys products are used in the
    aerospace, defense, automotive, medical, education, electronic, and
    consumer product industries. The company's systems are also used for
    rapid manufacturing and rapid tooling applications. Stratasys and FDM
    are registered trademarks of Stratasys, Inc. Objet and PolyJet are
    trademarks of Objet Geometries Ltd., and may be registered in certain
    jurisdictions. For more information on the company, go to
    www.Stratasys.com; www.RedEyeRPM.com; or www.DimensionPrinting.com..

    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 (TM)line, Prodigy Plus, FDM Maxum(TM), FDM
    Vantage(TM), and Titan(TM) 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 Eden polyjet line and 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 RedEyeRPM(TM) 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, 2005 and
    10-Q filed throughout 2006.
    This release is also available on the Stratasys Web site at
    www.Stratasys.com.