Minneapolis, MN - May 28, 2008 - The Dimension 3D Printing Group, a business unit of Stratasys, Inc. (Nasdaq: SSYS), today announced immediate availability of new 60-month, cost-saving leasing terms to all U.S. customers. These new terms apply to the Dimension Elite, Dimension 768 series and Dimension 1200es series. The terms provide for zero percent interest over 60 months with a $1 buyout at the conclusion of the lease. "We believe the market will embrace the 20 percent savings over our 48-month program, and we're excited to make this technology more affordable for U.S. customers who choose to lease." said Jon Cobb, vice president and general manager of 3D printing for Stratasys. "For example, the new terms would allow a BST 768 customer to print eight 3D models per month at a leasing cost of just $39 per model." For more information on Dimension 3D printers, visit www.dimensionprinting.com or call toll free 888-480-3548 (U.S.).

About The Dimension 3D Printing GroupThe Dimension 3D Printing Group is a business unit of Stratasys, Inc., based in Minneapolis, Minn. Dimension 3D printers - which include the Elite, the Dimension 1200es Series and Dimension 768 Series - are networked, desktop modeling systems that provide CAD (Computer-Aided-Design) users a fast, office-friendly, low-cost alternative for building functional 3D prints. Dimension 3D printers build accurate models layer by layer using durable ABS plastic, allowing users to not only evaluate design concepts, but test 3D prints for functionality, form and fit. As the first large format desktop 3D printer that sells for less than $30,000, Dimension incorporates many key features found in modeling systems that cost tens of thousands of dollars more.

About Stratasys Inc.
Stratasys Inc., Minneapolis, manufactures additive fabrication machines for 3D printing, prototyping and direct digital manufacturing. It also offers prototype and part manufacturing services through its RedEye RPM business unit. According to Wohlers Report 2008, Stratasys supplied 44 percent of all additive fabrication systems installed worldwide in 2007, making it the unit market leader for the sixth consecutive year. Stratasys patented and owns the rapid prototyping process known as fused deposition modeling (FDM®). The process creates functional prototypes and end-use parts directly from any 3D CAD program, using ABS plastic, polycarbonate, PPSF, and blends. The company holds more than 180 granted or pending additive fabrication patents globally. Stratasys products are used in the aerospace, defense, automotive, medical, education, electronic, and consumer product industries. On the Web: 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, FDM 200mcTM, 360mcTM, 400mcTM, 900mcTM, and MaxumTM 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 ABSplus and M30; the market acceptance of these and other materials; the impact of competitive products and pricing; the timely development and acceptance of new products and materials; the success of our recent R&D initiative to expand the direct digital manufacturing capabilities of our core FDM technology; the success of our RedEyeRPMTM and other parts services; and the other risks detailed from time to time in our SEC Reports, including the annual report filed on Form 10-K for the year ended December 31, 2007 and 10-Q filed throughout 2008.