Rock Hill, South Carolina, Mar. 17, 2008 - - 3D Systems Corporation (NASDAQ: TDSC), a leading provider of 3-D Modeling, Rapid Prototyping and Manufacturing solutions, announced today operating results for its fourth quarter and the year ended December 31, 2007. The company also filed its Annual Report on Form 10-K with the SEC today.

The company will hold a conference call and simultaneous webcast to discuss its operating results for the fourth quarter and full year of 2007 tomorrow morning, March 18, 2008, at 9:00 a.m., Eastern Time. Additional information relating to that call and webcast is provided below.

Consistent with the improving trend that the company experienced throughout 2007, it reported record revenue for both the fourth quarter and full year 2007. Revenue for the fourth quarter was a record $44.9 million. While on the face of it, the increase over the fourth quarter of 2006 was 6%, it should be noted that the 2006 fourth quarter was heavily influenced by the corrective actions that we took in the latter half of 2006 to remediate the disruptions that we experienced earlier that year and by the execution of a series of infrastructure and strategic initiatives that were designed to transform our business model.

Revenue for the full year 2007 increased by 16% to a new annual record of $156.5 million. This revenue increase reflected:

• A 25% increase in revenue from systems and other products to $58.2 million in 2007;

• A 19% increase in revenue from materials to $62.0 million; and

• Essentially flat revenue from services increasing by less than $0.1 million to $36.4 million.

Operating income increased to $1.4 million for the fourth quarter, reversing a $5.3 million operating loss in the fourth quarter of 2006, and net income available to common stockholders increased to $1.4 million, reversing a $6.0 million net loss in the 2006 quarter. Net income per share was $0.06 on a fully diluted basis for the fourth quarter of 2007, reversing a net loss of $0.31 per share on a fully diluted basis in the 2006 quarter.

For the full year, the company's operating loss declined by 80% to $5.1 million from $25.7 million in 2006 as a result of higher revenue, improved gross profit and lower operating expenses.

Net loss available to common stockholders declined by 78% to $6.7 million from $30.7 million in 2006 as a result of a reduction in operating losses, lower income tax provisions and the absence of preferred stock dividends in 2007. Net loss per share in 2007 declined by 81% to $0.33 per share on a fully diluted basis from $1.77 per share on a fully diluted basis in 2006 reflecting the positive quarterly trends that the company experienced in 2007 and the modest net income that it reported in the last six months of the year.

At December 31, 2007, the company's backlog was $3.1 million, primarily for systems, compared to $5.0 million at December 31, 2006. The company believes that the December 31, 2007 level of backlog is higher than the normal operating trends of its business as the company's business is generally not dependent on backlog.

"We are pleased with the continuing improvement in our operating results throughout 2007," said Abe Reichental, 3D Systems' President and Chief Executive Officer. "While our gross profit margins exhibited some improvement and our operating expenses began to decline and to resume a more normal run-rate, we were disappointed with the slower than expected improvement in both categories.

"We believe that the key components of our annual revenue composition clearly reflect results from the significant business model changes that we embarked on some 24 months ago," continued Reichental. "Consistent with our expectations, materials revenue reached a new record of $62 million and represented some 40% of our total revenue. And because we believe that systems' placements are a pre-curser for additional materials revenue in future periods, we are pleased that, for the full year revenue from systems increased by 25%. Revenue from materials grew by 19% during 2007, reflecting the positive marketplace reception that our new systems and materials are enjoying and the early traction and underlying momentum that we are enjoying from our integrated materials cartridge strategy.

"We are gratified that for the full year 2007, approximately 45% of our revenue was generated by new products underscoring our significant portfolio transformation and strong emphasis on marketplace leadership through technology. During the past three years, we have been able to develop and commercialize some 36 new products and at the same time, prune and retire numerous legacy systems and materials. The net result is beginning to emerge more clearly, as our key revenue components shift more decidedly in favor of materials and systems and our service business revenue is stabilizing and its profitability is improving," continued Reichental.

Gross profit for the fourth quarter of 2007 increased by 13% to $18.1 million and, for the full year, increased by 37% to $63.5 million.

"Our gross profit margin continued to show an improving trend over the fourth quarter and full year of 2007, reflecting our higher revenue, the relatively lower increase in our cost of sales and the absence in the 2007 periods of the business disruptions, challenges and customer accommodations that adversely affected our profitability in the 2006 periods," continued Reichental. "Our gross profit margin increased to 40% for the fourth quarter of 2007 from 38% in the 2006 quarter and increased to 41% for the full year 2007 from 34% in the full year 2006."

Operating expenses declined by $4.7 million to 37% of revenue in the fourth quarter of 2007 from the fourth quarter of 2006, reflecting lower operating expenses and the absence of the restructuring costs that the company incurred in 2006 from its relocation to Rock Hill.

For the full year 2007, operating expenses declined by $3.4 million. This decrease arose primarily from the absence in 2007 of the $6.6 million of restructuring costs related to the company's relocation to Rock Hill that were partially offset by $3.0 million of higher selling, general and administrative expenses and $0.3 million of higher research and development costs.

Annual selling, general and administrative expenses were generally within the range the company previously advised and reflected in part the abnormally higher costs that the company incurred as a result of its previously mentioned higher consulting and remediation costs from its previously disclosed disruptions and higher selling expenses attributable to higher sales.

Higher annual research and development expenses were consistent with the range that the company previously announced in the third quarter of 2007 and reflected its continuing high level of work on selected new product developments, including its new V-Flash™ Desktop 3-D Modeler. The company unveiled the V-Flash™ Modeler in September at its World Conference, and consistent with its previous announcements, began shipping these Modelers to selected hearing aid customers during the first quarter of 2008. In keeping with its managed, phased roll-out plan, the company anticipates commencing shipping of general purpose units to a selected group of its authorized resellers before the end of March.

"Notwithstanding our steady improvements in gross profit and operating expenses, we are disappointed with the slower than expected rate of progress we were able to make during 2007. We expect to make additional progress during 2008 toward our goal of achieving and improving our historical gross profit and operating expense levels as a percent of revenue," commented Reichental.

The company ended 2007 with $29.7 million of unrestricted cash compared to $14.3 million of unrestricted cash at December 31, 2006.

The company also continued to improve its management of inventories and accounts receivable. For the full year, inventories declined by over $6 million to $20.0 million at the end of 2007. The company expects to reduce its inventories further during 2008 toward its longer term target of $15 million without any reduction in service levels to its customers.

Accounts receivable, net decreased by $3.4 million to $31.1 million at the end of 2007. This decline resulted in a reduction of 10 days of sales outstanding to 64 days at December 31, 2007.

"We remain confident in our overall direction. We believe that the key initiatives and investments that we undertook over the past 24 months have provided us with the right platform to achieve our long-term objectives," continued Reichental. "Apart from the high costs associated with the launch of our V-Flash™ Modeler and the residual of professional and consulting expenses from the previously discussed disruptions that we incurred in 2006, we expect that our quarterly operating expenses are resuming a more normalized run rate.

"We believe that our stronger financial position, resulting from our substantially reduced indebtedness and ongoing improvements in working capital management provides us with the flexibility to pursue our near-term growth opportunities vigorously," concluded Reichental.

For a more detailed review of the company's operating results and financial condition, please read the managements' discussion and analysis in its Annual Report on Form 10-K for the year ended December 31, 2007, which was filed with the SEC today.

Conference Call and Audio Webcast Details
3D Systems will hold a conference call and audio Webcast to discuss its fourth quarter and full year 2007 financial results tomorrow morning, Tuesday, March 18, at 9:00 a.m. Eastern Time.

To access the Conference Call, dial 1-877-591-4956 (or 719-325-4936 from outside the United States). A recording will be available two hours after completion of the call for seven days. To access the recording, dial 1-888-203-1112 (or 719-457-0820 from outside the United States) and enter 4467834, the confirmation code.

To access the audio Webcast, log onto 3D Systems' website at www.3dsystems.com/ir. To ensure timely participation and technical capability, we recommend logging on a few minutes prior to the conference call to activate your participation. The Webcast will be available for replay beginning approximately 90 minutes after completion of the call at: www.3dsystems.com/ir.

Forward-Looking Statements
Certain statements made in this release that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements in the conditional or future tenses or that include terms such as "believes," "belief," "expects," "estimates," "intends," "anticipates" or "plans" to be uncertain and forward-looking. Forward-looking statements may include comments as to the company's beliefs and expectations as to future events and trends affecting its business and expectations, including matters relating to the proposed restatements of the company's financial statements and related matters described herein, and are necessarily subject to uncertainties, many of which are outside the control of the company. The factors described under the headings "Forward-Looking Statements," "Cautionary Statements and Risk Factors," and "Risk Factors" in the company's periodic filings with the Securities and Exchange Commission, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements.

About 3D Systems Corporation
3D Systems is a leading provider of 3-D Modeling, Rapid 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 via email at moreinfo@3dsystems.com.