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Spatial's Deformable Modeler a Global Success

5 May 1999

Spatial's Deformable Modeler a Global Success; Over 30 Licensees Invest in Innovative Surface Modeling Technology

    BOULDER, Colo.--May 5, 1999--Spatial Technology Inc. (AMEX: STY), the world's leading developer of open, component 3D modeling technology, today announced the ongoing global success and broad acceptance of its Deformable Modeling technology. Spatial's Deformable Modeler(TM) is an advanced NURBS-based 3D surface modeling tool that enables users to achieve a high level of artistic design and industrial styling. Spatial has licensed the Deformable Modeler to over thirty organizations including Alias|Wavefront, Ashlar Inc., Autodesk Inc. , Baystate Technologies Inc., Honda R&D Co. Ltd., Asaka R&D Center, Kockums Computer Systems AB, Kuraki Co., LTD, NK-EXA Corporation, Play South Inc.-3D Group, and SolidWorks Corporation.
    According to Daratech Inc., a prominent industry market research firm, the introduction of the Deformable Modeler successfully transformed Spatial's business model and broadened its market to include component technology which can be licensed by both ACIS-enabled and non-ACIS based customers. This market expansion has directly affected Spatial's bottom line. The Deformable Modeler set the record as Spatial's largest grossing new product in 1998 and was an important contributor to Spatial's 78% growth in new license revenue in the first quarter of 1999. Spatial has a patent pending for the next generation of its
    Deformable Modeling technology. Deformable Modeling is a new, innovative technology that allows an end user to describe and change a free-flowing shape as if it were a pliant body, such as a clay model. Surfaces can also be pushed and pulled with natural influences like gravity, pressure, and springs. Shapes can be created using functions, which mimic real-world conditions affecting physical objects. This unique, easy-to-use approach to complex free-form surface generation offers new possibilities for design engineers. The Deformable Modeler is ideal for applications in areas such as CAD, CAM, CAE, AEC, rapid prototype development, simulation, product design, automotive styling, rendering, and animation.
    "Spatial's Deformable Modeler is an impressive tool with some of the most innovative surface design technology available in the marketplace," said Matt Hoffman, director of product development, Play South Inc.-3D Group. "We have been very pleased with the ease of integration and are excited to be able to offer deformable modeling to our ElectricImage design and animation users."
    "Kuraki Co. licensed the ACIS(R) Deformable Modeling Husk as a key component of its next-generation CAM strategy," said Mr. Yoshiteru Wanifuchi, general manager, System Engineering Department, Kuraki Co., LTD. "We are very impressed with the power of the software and are amazed at the ease with which it can be integrated into our existing CAM system."
    "Spatial's Deformable Modeling technology is winning broad acceptance with application developers, manufacturers, research institutions and universities and we are very pleased with the large number of licensees that are currently implementing this technology in their design applications," said Bruce Morgan, president and CEO, Spatial. "The industry is always looking for new, innovative technology and, as a technology center of excellence, Spatial is well-positioned to develop and deliver this advanced, production-proven, 3D component modeling technology."
    Mr. Morgan added, "In this fiercely, competitive industry, many of our Deformable Modeler licensees have chosen to stay confidential. With the ease of implementation, we expect to see many new product announcements which include Spatial's Deformable Modeling technology in the coming months."
    Spatial Technology Inc. is the world leader in the development of open, component 3D modeling technology. The ACIS 3D Toolkit is universally recognized as the de facto standard 3D modeling kernel for the MCAD, CAM, CAE, and AEC industries. With over 495 ACIS licensees and more than 1.4 million end users of more than 180 ACIS-enabled applications, ACIS is indisputably the most widely used 3D modeling kernel in the world.
    The open architecture of ACIS and the industry standard ACIS SAT(TM) file format are known as the "ACIS Geometry Bus." The ACIS Geometry Bus is the key to 3D model interoperability among ACIS-enabled applications, including ABAQUS/CAE by Hibbitt, Karlsson & Sorensen, Inc., AutoCAD and Mechanical Desktop by Autodesk, Inc., CADKEY by Baystate Technologies, Inc., GAMBIT by Fluent Inc., Grade/CUBE II by Hitachi Zosen Information Systems, GSCAD by Intergraph Corporation , IronCAD by Visionary Design Systems, Inc., Maxwell 3D Field Simulation by Ansoft Corporation , TurboCAD Solid Modeler by IMSI , Vellum Solids by Ashlar Inc., and Working Model 3D by MacNeal-Schwendler Corporation .
    Spatial's Interoperability Solutions Subsidiary, InterData Access (IDA), is a leading provider of product data viewing, data translation, and digital mock-up software and consulting services to Fortune 500 industrial companies worldwide. IDA products include IntraVISION(R), CALSVIEW(TM), VisionShare(TM), Data Exchange Manager, and IGES/STEP development tools. IDA's customers include Boeing, Bombardier, Caterpillar, Diebold, General Electric, Harley-Davidson, Hitachi, Lear Jet, Motorola, Northrop Grumman, and Silicon Graphics.
    Spatial Technology is headquartered in Boulder, Colorado, and has offices in Europe and Asia. Shares of Spatial stock are publicly traded on the Nasdaq-AMEX exchange under the symbol "STY" (AMEX: STY). For more information, visit Spatial's Web site at http://www.spatial.com, or call (303) 544-2900.
    Statements made in this news release that are not historical facts may be forward-looking statements. Actual results may differ materially from those projected in any forward-looking statement. There are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information. A description of risks and uncertainties attendant to Spatial Technology Inc. and its industry, and other factors which could affect the Company's financial results, are included in the Company's Securities and Exchange Commission filings, including but not limited to the Company's annual report on Form 10-KSB for the year ended December 31, 1998.

    Spatial Technology Inc. and SAT are trademarks. ACIS is a registered trademark of Spatial Technology Inc. CALSVIEW and VisionShare are trademarks of InterData Access, Inc. IntraVISION is a registered trademark of InterData Access, Inc.