Cautionary Statement on Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our intentions, beliefs, assumptions, projections, outlook, analyses or current expectations, plans, objectives, strategies and prospects, both financial and business, including statements concerning, among other things, current estimates of fiscal 2017 revenues, deferred revenue from annual licenses and maintenance and Adjusted EBITDA, the benefits of the ACTech acquisition, completion of start-up activities associated with our new manufacturing facilities, results of operations, cash needs, capital expenditures, expenses, financial condition, liquidity, prospects, growth and strategies, and the trends and competition that may affect the markets, industry or us. Such statements are subject to known and unknown uncertainties and risks. When used in this press release, the words “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “believe,” “forecast,” “will,” “may,” “could,” “might,” “aim,” “should,” and variations of such words or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon the expectations of management under current assumptions at the time of this press release. These expectations, beliefs and projections are expressed in good faith and the company believes there is a reasonable basis for them. However, the company cannot offer any assurance that our expectations, beliefs and projections will actually be achieved. By their nature, forward-looking statements involve risks and uncertainties because they relate to events, competitive dynamics and industry change, and depend on economic circumstances that may or may not occur in the future or may occur on longer or shorter timelines than anticipated. We caution you that forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. All of the forward-looking statements are subject to risks and uncertainties that may cause the company's actual results to differ materially from our expectations, including risk factors described in the company's annual report on Form 20-F filed with the U.S. Securities and Exchange Commission on May 1, 2017. There are a number of risks and uncertainties that could cause the company's actual results to differ materially from the forward-looking statements contained in this press release.

The company is providing this information as of the date of this press release and does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise, unless it has obligations under the federal securities laws to update and disclose material developments related to previously disclosed information.

Consolidated income statement (Unaudited)
		For the three months ended September 30									For the nine months ended September 30
(in thousands, except per share amounts)		2017			2017			2016			2017			2016
		U.S.$			€			€			€			€
Revenue		38,142			32,307			28,736			97,840			83,000
Cost of sales		(17,041	)		(14,434	)		(11,799	)		(42,102	)		(33,848	)
Gross profit		21,101			17,873			16,937			55,738			49,152
Gross profit as % of revenue		55.3	%		55.3	%		58.9	%		57.0	%		59.2	%
Research and development expenses		(5,550	)		(4,701	)		(4,389	)		(14,424	)		(13,521	)
Sales and marketing expenses		(10,334	)		(8,753	)		(8,299	)		(28,370	)		(26,647	)
General and administrative expenses		(7,149	)		(6,055	)		(5,286	)		(17,205	)		(15,225	)
Net other operating income (expenses)		1,669			1,414			1,369			3,660			4,433
Operating (loss) profit		(263	)		(222	)		332			(601	)		(1,808	)
Financial expenses		(1,249	)		(1,058	)		(182	)		(3,294	)		(1,688	)
Financial income		549			465			58			2,132			1,037
Share in loss of joint venture		(195	)		(165	)		(69	)		(596	)		(368	)
(Loss) profit before taxes		(1,158	)		(980	)		139			(2,359	)		(2,827	)
Income taxes		(511	)		(433	)		(191	)		(825	)		(812	)
Net (loss) profit of the period		(1,669	)		(1,413	)		(52	)		(3,184	)		(3,639	)
Net (loss) profit attributable to:
The owners of the parent		(1,669	)		(1,413	)		(52	)		(3,184	)		(3,639	)
Non-controlling interest		−			−			−			−			−
Earnings per share attributable to ordinary owners of the parent
Basic		(0.04	)		(0.03	)		(0.00	)		(0.07	)		(0.08	)
Diluted		(0.04	)		(0.03	)		(0.00	)		(0.07	)		(0.08	)
Weighted average basic shares outstanding		47,325			47,325			47,325			47,325			47,325
Weighted average diluted shares outstanding		47,325			47,325			47,325			47,325			47,325

Consolidated statements of comprehensive income (Unaudited)
		For the three months ended September 30									For the nine months ended September 30
(in thousands)		2017			2017			2016			2017			2016
		U.S.$			€			€			€			€
Net profit (loss) for the period		(1,669	)		(1,413	)		(52	)		(3,184	)		(3,639	)
Other comprehensive income
Exchange difference on translation of foreign operations		(183	)		(155	)		(459	)		(481	)		(1,898	)
Other comprehensive income (loss), net of taxes		(183	)		(155	)		(459	)		(481	)		(1,898	)
Total comprehensive income (loss) for the year, net of taxes		(1,852	)		(1,568	)		(511	)		(3,665	)		(5,537	)
Total comprehensive income (loss) attributable to:
The owners of the parent		(1,852	)		(1,568	)		(511	)		(3,665	)		(5,537	)
Non-controlling interest		−			−			−			−			−

Consolidated statement of financial position (Unaudited)
		As of September 30		As of December 31
(in thousands)		2017		2016
		€		€
Assets
Non-current assets
Goodwill		8,743		8,860
Intangible assets		11,219		9,765
Property, plant & equipment		62,643		45,063
Investments in joint ventures		−		−
Deferred tax assets		408		336
Other non-current assets		2,740		2,154
Total non-current assets		85,753		66,178
Current assets
Inventories		8,642		7,870
Trade receivables		30,656		27,479
Held to maturity investments		−		−
Other current assets		6,991		4,481
Cash and cash equivalents		48,099		55,912
Total current assets		94,388		95,742
Total assets		180,141		161,920

		As of September 30			As of December 31
(in thousands)		2017			2016
		€			€
Equity and liabilities
Equity
Share capital		2,729			2,729
Share premium		79,703			79,019
Consolidated reserves		(4,779	)		(1,603	)
Other comprehensive income		(1,593	)		(1,112	)
Equity attributable to the owners of the parent		76,060			79,033
Non-controlling interest		−			−
Total equity		76,060			79,033
Non-current liabilities
Loans & borrowings		46,532			28,267
Deferred tax liabilities		932			1,325
Deferred income		3,728			3,588
Other non-current liabilities		2,220			1,873
Total non-current liabilities		53,412			35,053
Current liabilities
Loans & borrowings		7,033			5,539
Trade payables		14,171			13,400
Tax payables		967			926
Deferred income		18,130			17,822
Other current liabilities		10,368			10,147
Total current liabilities		50,669			47,834
Total equity and liabilities		180,141			161,920

Consolidated statement of cash flows (Unaudited)
		For the nine months ended September 30
(in thousands)		2017			2016
		€			€
Operating activities
Net (loss) profit of the period		(3,184	)		(3,639	)
Non-cash and operational adjustments
Depreciation of property, plant & equipment		6,008			4,669
Amortization of intangible assets		2,134			1,425
Share-based payment expense		997			718
Loss (gain) on disposal of property, plant & equipment		(7	)		(147	)
Fair value contingent liabilities		−			54
Movement in provisions		21			−
Movement reserve for bad debt		191			(2	)
Financial income		(416	)		(126	)
Financial expense		957			668
Impact of foreign currencies		621			55
Share in loss of a joint venture (equity method)		596			368
Deferred tax expense (income)		(395	)		225
Income taxes		1,219			587
Other		(42	)		7
Working capital adjustment & income tax paid
Increase in trade receivables and other receivables		(5,916	)		(2,394	)
Decrease (increase) in inventories		(804	)		(828	)
Increase in trade payables and other payables		1,789			3,203
Income tax paid		(1,251	)		(528	)
Net cash flow from operating activities		2,518			4,315

		For the nine months ended September 30
(in thousands)		2017			2016
		€			€
Investing activities
Purchase of property, plant & equipment		(22,245	)		(6,816	)
Purchase of intangible assets		(3,739	)		(871	)
Proceeds from the sale of property, plant & equipment (net)		54			192
Proceeds from the sale of intangible assets (net)		36			−
Acquisition of subsidiary		−			−
Investments in joint-ventures		(500	)		−
Interest received		267			7
Net cash flow used in investing activities		(26,127	)		(7,488	)
Financing activities
Proceeds from loans & borrowings		22,794			7,004
Repayment of loans & borrowings		(2,827	)		(2,116	)
Repayment of finance leases		(2,081	)		(1,293	)
Interest paid		(502	)		(406	)
Other financial income (expense)		(251	)		(7	)
Net cash flow from (used in) financing activities		17,133			3,182
Net increase of cash & cash equivalents		(6,476	)		9
Cash & cash equivalents at beginning of the year		55,912			50,726
Exchange rate differences on cash & cash equivalents		(1,337	)		(245	)
Cash & cash equivalents at end of the year		48,099			50,490

Reconciliation of Net Profit (Loss) to EBITDA and Adjusted EBITDA (Unaudited)
		For the three months ended September 30						For the nine months ended September 30
(in thousands)		2017			2016			2017			2016
		€			€			€			€
Net profit (loss) for the period		(1,413	)		(52	)		(3,184	)		(3,639	)
Income taxes		433			191			825			812
Financial expenses		1,058			181			3,294			1,688
Financial income		(465	)		(58	)		(2,132	)		(1,037	)
Share in loss of joint venture		165			69			596			368
Depreciation and amortization		2,918			2,144			8,142			6,094
EBITDA		2,696			2,475			7,541			4,286
Non-cash stock-based compensation expense (1)		297			358			997			717
Acquisition-related expenses (2)		266			−			266			−
ADJUSTED EBITDA		3,259			2,833			8,804			5,003

(1)		Non-cash stock-based compensation expenses represent the cost of equity-settled and cash-settled share-based payments to employees.
(2)		Acquisition-related expenses of business combinations represent expenses incurred in connection with the ACTech acquisition.

Segment P&L (Unaudited)
(in thousands)		Materialise Software			Materialise Medical			Materialise Manufact- uring			Total segments			Unallocated			Consoli- dated
		€			€			€			€			€			€
For the three months ended September 30, 2017
Revenues		8,422			10,421			13,456			32,299			8			32,307
Segment EBITDA		3,362			1,170			499			5,031			(2,335	)		2,696
Segment EBITDA %		39.9	%		11.2	%		3.7	%		15.6	%					8.3	%
For the three months ended September 30, 2016
Revenues		7,632			9,537			11,567			28,736			−			28,736
Segment EBITDA		2,814			754			1,723			5,291			(2,816	)		2,475
Segment EBITDA %		36.9	%		7.9	%		14.9	%		18.4	%					8.6	%

(in thousands)		Materialise Software			Materialise Medical			Materialise Manufact- uring			Total segments			Unallocated			Consoli- dated
		€			€			€			€			€			€
For the nine months ended September 30, 2017
Revenues		25,302			30,999			41,318			97,619			221			97,840
Segment EBITDA		9,307			2,242			3,062			14,611			(7,070	)		7,541
Segment EBITDA %		36.8	%		7.2	%		7.4	%		15.0	%					7.7	%
For the nine months ended September 30, 2016
Revenues		22,044			27,849			33,080			82,973			27			83,000
Segment EBITDA		7,181			238			2,410			9,829			(5,543	)		4,286
Segment EBITDA %		32.6	%		0.9	%		7.3	%		11.8	%					5.2	%

Reconciliation of Net Profit (Loss) to Segment EBITDA (Unaudited)
		For the three months ended September 30						For the nine months ended September 30
(in thousands)		2017			2016			2017			2016
		€			€			€			€
Net profit (loss) for the period		(1,413	)		(52	)		(3,184	)		(3,639	)
Income taxes		433			191			825			812
Financial expenses		1,058			182			3,294			1,688
Financial income		(465	)		(58	)		(2,132	)		(1,037	)
Share in loss of joint venture		165			69			596			368
Operating profit		(222	)		332			(601	)		(1,808	)
Depreciation and amortization		2,918			2,144			8,142			6,094
Corporate research and development		502			242			1,527			1,201
Corporate headquarter costs		2,447			3,326			6,984			6,865
Other operating income (expense)		(614	)		(753	)		(1,441	)		(2,523	)
Segment EBITDA		5,031			5,291			14,611			9,829

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