Conference Call and Audio Webcast Details

3D Systems will hold a conference call and audio webcast to discuss its second-quarter and first-half 2008 financial results tomorrow morning, August 6, 2008, at 9:00 a.m. Eastern Time.

• To access the Conference Call, dial 1-888-336-3485 (or 706-634-0653 from outside the United States). A recording will be available two hours after completion of the call for three days. To access the recording, dial 1-800-642-1687 (or 706-645-9291 from outside the United States) and enter 55872360, the confirmation code.
• To access the audio webcast, log onto 3D Systems’ Web site 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 three hours 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 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 Email Contact.

3D SYSTEMS CORPORATION
Condensed Consolidated Statements of Operations
Quarter and Six Months Ended June 30, 2008 and 2007
(Unaudited)
			Quarter Ended June 30,								Six Months Ended June 30,
(in thousands, except per share amounts)				2008				2007				2008				2007
Revenue:
	Products		$	27,713			$	27,591			$	50,478			$	56,150
	Services			8,943				8,835				17,965				17,208
		Total revenue		36,656				36,426				68,443				73,358
Cost of sales:
	Products			15,795				15,864				27,522				29,928
	Services			7,541				7,083				14,175				14,048
		Total cost of sales		23,336				22,947				41,697				43,976
Gross profit				13,320				13,479				26,746				29,382
Operating expenses:
	Selling, general and administrative			12,555				14,872				25,619				29,764
	Research and development			3,578				3,528				7,175				6,615
		Total operating expenses		16,133				18,400				32,794				36,379
Operating loss				(2,813	)			(4,921	)			(6,048	)			(6,997	)
Interest expense and other, net				200				559				270				1,245
Loss before provision for income taxes				(3,013	)			(5,480	)			(6,318	)			(8,242	)
Provision for (benefit of) income taxes				310				(177	)			696				181
Net loss			$	(3,323	)		$	(5,303	)		$	(7,014	)		$	(8,423	)
Shares used to calculate basic and diluted net loss				22,351				19,361				22,339				19,240
Basic and diluted net loss per share (1)			$	(0.15	)		$	(0.27	)		$	(0.31	)		$	(0.44	)
(1)  See Schedule 1 for the calculation of basic and diluted net loss per share.

3D SYSTEMS CORPORATION
Condensed Consolidated Balance Sheets
June 30, 2008 and December 31, 2007
(Unaudited)
(in thousands)				2008				2007
ASSETS
Current assets:
Cash and cash equivalents			$	19,109			$	29,689
Accounts receivable, net				28,503				31,115
Inventories, net				26,085				20,041
Prepaid expenses and other current assets				3,648				4,429
Deferred income tax assets				586				693
Restricted cash				1,200				1,200
Assets held for sale, net				3,454				3,454
Total current assets				82,585				90,621
Property and equipment, net				24,820				21,331
Goodwill				48,742				47,682
Other intangible assets, net				4,460				5,170
Other assets, net				2,755				2,581
			$	163,362			$	167,385
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Industrial development bonds related to assets held for sale		$	3,205			$	3,325
	Current portion of capitalized lease obligations			188				181
	Accounts payable			20,501				20,712
	Accrued liabilities			10,178				12,248
	Customer deposits			3,626				1,537
	Deferred revenue			11,299				11,712
		Total current liabilities		48,997				49,715
Long-term portion of capitalized lease obligations				8,567				8,663
Other liabilities				4,524				4,238
		Total liabilities		62,088				62,616
Stockholders' equity:
	Common stock, authorized 60,000 shares, issued and outstanding 22,417 shares (2008) and 22,224 shares (2007)
				22				22
	Additional paid-in capital			175,592				173,645
	Treasury stock, at cost; 52 shares (2008) and 50 shares (2007)			(113	)			(111	)
	Accumulated deficit in earnings			(79,417	)			(72,403	)
	Accumulated other comprehensive income			5,190				3,616
		Total stockholders' equity		101,274				104,769
			$	163,362			$	167,385

	3D SYSTEMS CORPORATION
	Condensed Consolidated Statements of Cash Flow
	Six Months Ended June 30, 2008 and 2007
	(Unaudited)
			Six Months Ended June 30,
(in thousands)				2008				2007
Cash flow from operating activities:
Net loss			$	(7,014	)		$	(8,423	)
	Adjustments to reconcile net loss to net cash provided by (used in) operating activities :
Provision for (benefit of) deferred income taxes				110				(149	)
Depreciation and amortization				3,123				3,647
Provision for (benefit of) bad debts				287				(28	)
Stock-based compensation				856				1,660
Changes in operating accounts:
	Accounts receivable			4,353				8,591
	Inventories			(7,589	)			181
	Prepaid expenses and other current assets			899				1,587
	Accounts payable			(1,616	)			(9,571	)
	Accrued liabilities			(2,749	)			(1,384	)
	Customer deposits			1,961				(4,993	)
	Deferred revenue			(783	)			965
	Other operating assets and liabilities			(219	)			325
Net cash used in operating activities				(8,381	)			(7,592	)
Cash flow used in investing activities:
	Purchases of property and equipment			(3,244	)			(417	)
	Additions to license and patent costs			(230	)			(262	)
	Software development costs			-				(300	)
Net cash used in investing activities				(3,474	)			(979	)
Cash flow provided by financing activities:
	Net proceeds from issuance of common stock			-				20,562
	Stock options and restricted stock proceeds			1,091				2,621
	Repayment of long-term debt			(210	)			(176	)
Net cash provided by financing activities				881				23,007
Effect of exchange rate changes on cash				394				406
Net increase (decrease) in cash and cash equivalents				(10,580	)			14,842
Cash and cash equivalents at the beginning of the period				29,689				14,331
Cash and cash equivalents at the end of the period			$	19,109			$	29,173
Supplemental Cash Flow Information:
Interest payments			$	483			$	786
Income tax payments				408				791
Non-cash items:
Cumulative effect of adopting FIN 48				-				1,208
Conversion of 6% convertible subordinated debentures				-				509
Transfer of equipment from inventory to property and equipment				3,944				945
Transfer of equipment to inventory from property and equipment				1,518				322

Schedule 1
(Unaudited)
Following is a reconciliation of the numerator and denominator of the basic and diluted net earnings (loss) per share computations:
			Quarter Ended June 30,								Six Months Ended June 30,
(in thousands, except per share amounts)				2008				2007				2008				2007
Basic and diluted earnings (loss) per share:
Basic earnings (loss) per share:
Numerator:
Net loss			$	(3,323	)		$	(5,303	)		$	(7,014	)		$	(8,423	)
Denominator:
Weighted average common shares outstanding				22,351				19,361				22,339				19,240
Basic net loss per share			$	(0.15	)		$	(0.27	)		$	(0.31	)		$	(0.44	)
Diluted earnings (loss) per share:
Numerator:
Net loss			$	(3,323	)		$	(5,303	)		$	(7,014	)		$	(8,423	)
Denominator:
Weighted average common shares outstanding				22,351				19,361				22,339				19,240
Effect of dilutive securities:
Stock options and restricted stock awards				-				-				-				-
Diluted weighted average shares outstanding				22,351				19,361				22,339				19,240
Diluted net loss per share			$	(0.15	)		$	(0.27	)		$	(0.31	)		$	(0.44	)

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