DTM Corporation Reports Record Second Quarter Income of $0.11 Per Share And Record Revenue of $10.3 Million

19 July 2000

    AUSTIN, Texas, July 18 DTM Corporation
today announced that net income for the quarter ended June 30, 2000 was
$763,000, or $0.11 per share.  This was an increase of 159% from 1999's second
quarter income of $295,000, or $0.04 per share.  DTM's revenues for the
quarter ended June 30, 2000 were $10.3 million, a 36% increase over the
comparable prior period revenues of $7.6 million.

    For the six months ended June 30, 2000, net income was $1,125,000, or
$0.16 per share.  This was an increase of 98% from 1999's first half net
income of $569,000, or $0.09 per share.  DTM's revenues for the six months
ended June 30, 2000 were $18,486,000, a 19% increase over the comparable prior
year period revenues of $15,571,000.

    John S. Murchison, III, DTM's President and CEO, said, "This was a very
good quarter.  Top line growth was exceptional with good contribution from
both continuing revenues and machine sales.  Continuing revenues include
service contracts, support services and sales of sintering materials and were
at a record level for the second quarter.  Machine shipments were also at a
record level.  While sales were good in all of our primary geographic markets,
they were particularly strong in the Pacific Rim and Europe as a result of
machines purchased by customers in each of those areas.  This overall strength
in our business led to a record for second quarter earnings."

    "During the quarter we continued to make good progress with new product
and market initiatives.  Beta testing of our new metal powder, LaserForm ST-
100, has been very positive and the product launch is scheduled for later this
year.  We believe that applications for this powder, which include metal
functional prototypes and tooling, will allow us to continue to grow the
prototype market segment.  In addition, there is also a growing interest in
the use of DTM's selective laser sintering products for small lot
manufacturing.  We believe DTM's selective laser sintering products are well
suited for such applications and that this market will become an increasingly
important part of our business."

    About DTM Corporation

    DTM develops, manufactures, and markets advanced rapid prototyping and
manufacturing systems that include the Sinterstation(R) 2500plus.  All
Sinterstation systems utilize a process called SLS(R) selective laser
sintering and any of several plastic or metal SLS materials to create
three-dimensional objects from CAD designs.  Leading manufacturers throughout
the world, in a range of industries, use Sinterstation systems to rapidly
create production-quality parts, functional prototypes, and tooling for their
products.  Sinterstation users can realize numerous benefits as they develop
and manufacture products: ability to efficiently produce low-volume/high-value
products or to even customize every product to the customer's exact needs;
time savings; lower development costs, more efficient testing; capability to
prototype and test more design options; and the competitive advantage
associated with bringing new products to market faster.

    Additionally, product designers can design complex part shapes that could
not be fabricated under conventional methods.  Unlike competing technologies
and systems that are used primarily to create visualization models, DTM's
systems address industry's growing need for rapidly produced, durable,
testable prototypes and end-use parts.

    DTM Corporation
    Consolidated Statement of Income
    Three Months Ended                            June 30,
    Unaudited                               2000           1999
                                         (In thousands, except per
                                               share amounts)

    Revenues
     Products                           $   8,865      $   6,657
     Service and support                    1,468            942
                                           10,333          7,599

    Cost of sales:
     Products                               3,878          2,967
     Service and support                      989            580
                                            4,867          3,547

    Gross profit                            5,466          4,052

    Operating expenses:
     Selling, general and administrative    3,481          2,913
     Research and development                 840            788
                                            4,321          3,701

    Operating income                        1,145            351

    Other income (expense):
     Interest expense, net                    (36)           (21)
     Gain on sale of assets                   ---             79
                                              (36)            58

    Income before income taxes              1,109            409

    Income tax expense                        346            114

    Net income                          $     763      $     295

    Earnings per share:
     Basic earnings per share           $    0.11      $    0.04
     Diluted earnings per share         $    0.11      $    0.04

    Weighted average shares outstanding:
     Basic                                  7,030          6,717
     Diluted                                7,222          6,717


    DTM Corporation
    Consolidated Statement of Income
    Six Months Ended                             June 30,
    Unaudited                               2000          1999
                                        (In thousands, except per
                                              share amounts)

    Revenues
     Products                           $  15,664      $  13,648
     Service and support                    2,822          1,923
                                           18,486         15,571

    Cost of sales:
     Products                               7,003          6,081
     Service and support                    1,902          1,160
                                            8,905          7,241

    Gross profit                            9,581          8,330

    Operating expenses:
     Selling, general and administrative    6,177          6,191
     Research and development               1,714          1,450
                                            7,891          7,641

    Operating income                        1,690            689

    Other income (expense):
     Interest expense, net                    (55)           (28)
     Gain on sale of assets                   ---            129
                                              (55)           101

    Income before income taxes              1,635            790

    Income tax expense                        510            221

    Net income                          $   1,125      $     569

    Earnings per share:
     Basic earnings per share           $    0.16      $    0.09
     Diluted earnings per share         $    0.16      $    0.09

    Weighted average shares outstanding:
     Basic                                  7,018          6,594
     Diluted                                7,222          6,616


    DTM Corporation
    Consolidated Balance Sheets
    Unaudited                                      June 30,
                                             2000           1999
                                                (In thousands)
    Assets
     Current assets:
      Cash                              $   1,141      $     489
      Accounts receivable, net              8,002          6,127
      Inventories                           2,767          2,757
      Prepaid expenses and other              634            389
      Total current assets                 12,544          9,762
    Property, net                           1,524            956
    Capitalized software
     development costs, net                   392            502
    Patent and license fees, net              609            843

    Total assets                        $  15,069      $  12,063

    Liabilities and shareholders' equity
    Current liabilities:
     Bank line of credit                $     997      $     ---
     Accounts payable                       1,793          2,650
     Deferred revenues
      and customer deposits                 2,302          2,123
     Employee and agent compensation          966            968
     Income taxes                             440            221
     Total current liabilities              6,498          5,962

    Shareholders' equity:
     Common stock - 7,047,595 shares
      outstanding at June 30, 2000              1              1
     Additional paid-in capital            54,172         54,022
     Accumulated deficit                  (45,491)       (47,766)
     Accumulated other comprehensive loss    (111)          (156)
     Total shareholders' equity             8,571          6,101

    Total liabilities
      and shareholders' equity          $  15,069      $  12,063