Market Overview

As Carbon Fiber Applications Multiply, Stratasys Ships $70,000 3D Printer

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Industrial 3D Printer is Dedicated to Carbon-Fiber-Filled Nylon 12 on
Proven Industrial Platform

In response to the growing use of composites across industries, Stratasys
(NASDAQ:SSYS) is now shipping an affordably priced additive
manufacturing system dedicated for carbon-fiber-filled
Nylon 12
. The Fortus 380mc
Carbon Fiber Edition
, previewed at RAPID 2018, is an industrial
quality system that is being offered at $70,000 in the US. It began
shipping last week.

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20180820005606/en/

For both IndyCar and NASCAR circuits, Team Penske uses Stratasys FDM and carbon-fiber-filled Nylon 1 ...

For both IndyCar and NASCAR circuits, Team Penske uses Stratasys FDM and carbon-fiber-filled Nylon 12 for strong, lightweight parts. (Photo: Team Penske)

Recently composite material has seen a year-over-year market growth
between 8 to 12 percent. Carbon fiber composite applications and carbon
fiber reinforced polymers are considered clean energy technologies by
the U.S. Department of Energy because they enable "light-weighting,"
which reduces energy consumption. It's estimated that each ten percent
reduction in vehicle mass drives a six to eight percent increase in fuel
economy.

Stratasys was one of the first to offer a carbon fiber filled composite
for additive, but it previously offered the material only on high-end
production 3D printers in the $200K-$350K range. "Our customers are
pushing us for easier access to carbon fiber," says Stratasys Senior
Vice President of Sales, Pat Carey. "They've told us they want an
affordable solution but in a reliable, industrial-quality system. So
we're now offering a more accessible system that's based on our Fortus
380mc platform. Because the 380mc CFE is dedicated only to
carbon-fiber-filled Nylon 12 and one other material, we're able to
currently offer it at the lowest price for any of our industrial
printers."

"For many years, the additive manufacturing industry has seen a need for
a diversity of machines that produce parts in high-strength composite
materials," says Terry Wohlers of Wohlers Associates, an additive
manufacturing industry consultancy. "I'm hopeful the newest machine from
Stratasys will help to meet this need by offering strong parts in carbon
fiber and Nylon 12."

For both its IndyCar and NASCAR race cars, Team Penske uses FDM to
produce prototypes and end-use parts from carbon-fiber-filled Nylon 12
composite material. The team recently used the composite to produce a
mirror housing for its NASCAR race teams. After designing the mirror
housing, engineers then customized the design for each of their Cup
Series drivers before building the final parts from the composite via
FDM. The carbon-fiber-based material enabled Team Penske to produce
lightweight mirror housings with high impact resistance and high
stiffness, each of which is critical in motorsports. The composite's
stiffness is especially beneficial when making thin-walled parts, so the
parts won't flex under the aerodynamic loads produced on track.

Additive applications for carbon-fiber-filled Nylon 12 may include:

  • Functional prototyping of composite or metal parts
  • Short production runs in a high-strength material
  • Producing lightweight assembly tools for better ergonomics and reduced
    worker fatigue
  • Replacing metal parts with high strength, lightweight composite ones

Stratasys expects the quickest adopters of its Fortus 380mc CFE 3D
Printer to be those making tooling and fixtures and those in industries
that include Automotive; Recreational Sporting Equipment; Marine;
Orthosis and Prosthesis; Defense; Aerospace; Medical Equipment; Oil and
Gas.

Similar to a typical injection molded carbon fiber reinforced plastic
part, Stratasys Nylon 12CF is 35 percent chopped carbon fiber by weight,
and it exhibits the highest stiffness-to-weight ratio of any FDM or FFF
3D printed part.

The Fortus 380mc CFE is based on a proven platform that produces parts
with repeatable dimensional accuracy. Parts don't exhibit appreciable
warpage or shrinkage and will hold to a tight tolerance. Stratasys Nylon
12CF is up to four times stronger than a competitively priced
alternative in the X and Y axis, and it will maintain its mechanical
properties at a 40 percent higher temperature. The Fortus 380mc CFE is
between two and five times faster than the competitively priced
carbon-fiber-based 3D printer.

The Fortus 380mc CFE builds parts in 0.010 in. (0.254 mm) layer
thickness. The system is also compatible with ASA thermoplastic, for
which is can build in either 0.010 or .005 in. (0.127 mm) layer
thicknesses. The 3D printer's build chamber measures 14 x 12 x 12 in.
(355 x 305 x 305 mm). It offers water-soluble support material removal,
which eliminates the need for manual labor to remove the supports. This
in turn allows the creation of fine and intricate geometries, which
wouldn't be possible without the soluble support material, because the
fine features could be destroyed during cleaning, or intricate
geometries might be too laborious or impossible to remove the support
material.

The Fortus 380mc Carbon Fiber Edition 3D Printer and a Team Penske
NASCAR race car will be on display at the Stratasys IMTS booth # 431600
September 10 — 15 at Chicago's McCormick Place.

Stratasys is a global leader in additive manufacturing or 3D
printing
technology, and is the manufacturer of FDM® and
PolyJet™ 3D Printers. The company's technologies are used to create
prototypes, manufacturing tools, and production parts for industries,
including aerospace, automotive, healthcare, consumer products and
education. For 30 years, Stratasys products have helped manufacturers
reduce product-development time, cost, and time-to-market, as well as
reduce or eliminate tooling costs and improve product quality. The
Stratasys 3D printing ecosystem of solutions and expertise includes: 3D
printers, materials, software, expert services, and on-demand parts
production. Online at: www.stratasys.com,
http://blog.stratasys.com and LinkedIn.

Stratasys, FDM, and Fortus are registered trademarks, and Nylon 12CF and
380mc CFE and the Stratasys signet are trademarks of Stratasys Ltd.
and/or its subsidiaries or affiliates.

Note Regarding Forward-Looking Statements
The statements in
this press release relating to Stratasys' beliefs regarding the benefits
its customers will experience from the Fortus 380mc Carbon Fiber Edition
and Nylon 12CF, as well as its possible applications, are
forward-looking statements reflecting management's current expectations
and beliefs. These forward-looking statements are based on current
information that is, by its nature, subject to rapid and even abrupt
change. Due to risks and uncertainties associated with Stratasys'
business, actual results could differ materially from those projected or
implied by these forward-looking statements. These risks and
uncertainties include, but are not limited to: the risk that customers
will not perceive the benefits of the Fortus 380mc Carbon Fiber Edition
or Nylon 12CF to be the same as Stratasys does; and other risk factors
set forth under the caption "Risk Factors" in Stratasys' most recent
Annual Report on Form 20-F, filed with the Securities and Exchange
Commission (SEC) on February 28, 2018. Stratasys is under no obligation
(and expressly disclaims any obligation) to update or alter its
forward-looking statements, whether as a result of new information,
future events or otherwise, except as otherwise required by the rules
and regulations of the SEC.

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