Stratasys and Objet Complete Merger

  Stratasys and Objet Complete Merger

 Combination Creates a Leader in 3D Printing and Direct Digital Manufacturing
                    with Market Valuation of $3.0 Billion

Business Wire

MINNEAPOLIS & REHOVOT, Israel -- December 03, 2012

Stratasys, Inc. (NASDAQ: SSYS) and Objet Ltd. today announced the completion
of their merger, forming a leader in 3D printing and direct digital
manufacturing. The combined company will trade on the NASDAQ stock exchange as
Stratasys Ltd. (“Stratasys”) under the symbol SSYS beginning December 3, 2012.
Based on the closing price of Stratasys, Inc. stock on November 30, 2012, the
market capitalization of the new company will be approximately $3.0 billion.

Stratasys boasts an impressive portfolio of 3D printing and direct digital
manufacturing solutions, with systems that produce parts with a wide range of
capabilities and materials. The company will offer three leading technologies:
FDM^® for functional prototypes and production parts; inkjet-based PolyJet^®
for prototyping parts with high feature detail and fine surface finish; and
Solidscape^® Drop-on-Demand (“DoD”) thermoplastic ink-jetting technology for
complex wax patterns for investment casting of finished parts. With more than
260 channel partners around the world, Stratasys can leverage the extensive
geographic reach of its marketing and sales organization to serve customers
and grow awareness of 3D printing for rapid prototyping and production. In
addition, Stratasys will have a world-class R&D team focused on developing new
consumables and systems.

David Reis, chief executive officer of Stratasys, stated, “We are excited to
move forward as one company and deliver the benefits this combination creates
for our shareholders, our customers and our employees. Stratasys is now
uniquely positioned to offer a comprehensive portfolio of innovative products
and technologies, and we have the scale, team and financial strength to
achieve our goals. I look forward to working closely with the board of
directors, our senior management team and all of our employees to ensure a
seamless transition as we continue to deliver advanced solutions to our
customers worldwide.”

“We are pleased to announce the successful completion of this merger,” said
Scott Crump, full-time executive  chairman of Stratasys. “With our breadth of
products, commitment to innovation, and outstanding, service-focused team, we
will be well positioned to address customer needs across the entire 3D design
and manufacturing spectrum. The combined company has a deep well of talent and
a strong board and management team to lead us successfully as we continue to
pave a new way forward for the 3D printing industry.”

Transaction Information

Consistent with the terms of the transaction, which was announced on April 16,
2012, Stratasys, Inc. has merged with a subsidiary of Objet, each former
Stratasys common share has been converted into the right to receive one newly
issued ordinary share of Stratasys Ltd., and Objet has changed its name to
Stratasys Ltd. Former Stratasys stockholders hold approximately 55 percent of
the combined company’s common stock, and former Objet shareholders hold
approximately 45 percent on a fully diluted basis using the treasury stock
method. Stratasys is maintaining dual headquarters in Eden Prairie, Minnesota
and Rehovot, Israel, and is incorporated in Israel.

Financial Benefits of the Transaction

The transaction is expected to create significant revenue synergies from
increased sales, and to be accretive to non-GAAP earnings per share
immediately. Beginning 18 months after closing, Stratasys expects to be
generating between $7 and $8 million of annual net cost synergies and between
$3 and $4 million in annual tax savings.

Leadership

David Reis, former chief executive officer of Objet, has assumed the role of
chief executive officer; Erez Simha, former chief operations officer and chief
financial officer of Objet, has assumed the role of chief operations officer
(IL) and chief financial officer; Scott Crump, co-founder and former chief
executive officer of Stratasys, Inc., has become full-time executive chairman
of the board; and Elchanan Jaglom, formerly chairman of Objet, is serving as
the full-time chairman of the executive committee.

Integration

Stratasys management will immediately begin the process of fully integrating
the two companies, and the company has formed an executive committee comprised
of four members of the board of directors to oversee the integration process.
In the near term, customers can expect to work with each company as they
always have, and in the coming months, will have the ability to purchase both
Stratasys and Objet products from one channel partner point of contact. Learn
more atwww.StratasysForA3DWorld.com.

Advisors

Piper Jaffray & Co. acted as financial advisor to Stratasys and the firms
McLaughlin & Stern, LLP, Richards, Layton & Finger, P.A., Latham & Watkins
LLP, and Fischer Behar Chen Well Orion & Co. acted as its legal advisors. J.P.
Morgan Securities LLC acted as financial advisor to Objet and the firms Meitar
Liquornik Geva & Leshem Brandwein and Cooley LLP acted as its legal advisors.

About Stratasys Ltd.

Stratasys Ltd. (Nasdaq: SSYS) is the corporate entity formed in 2012 by the
merger of 3D printing companies Stratasys, Inc. and Objet Ltd., based in
Minneapolis, Minn. and Rehovot, Israel. The company manufactures 3D printers
and materials for prototyping and production. Prior to merging, the two
companies’ revenues totaled $277 million for 2011. Its patented FDM^® and
inkjet-based PolyJet^® processes produce prototypes or manufactured goods
directly from 3D CAD files or other 3D content. Systems include affordable
desktop 3D printers for idea development, a range of systems for prototyping,
and large production systems for direct digital manufacturing. The company’s
range of more than 120 3D printing materials is believed to be the widest in
the industry and includes over 100 proprietary inkjet-based photopolymer
materials and 10 proprietary FDM-based thermoplastic materials. Stratasys also
manufacturers Solidscape 3D Printers and operates the RedEye On Demand
digital-manufacturing service. The company has over 1,000 employees, holds
over 500 granted or pending additive manufacturing patents globally, and has
received 19 awards for its technology and leadership. Online at:
www.stratasys.com or http://blog.stratasys.com / www.objet.com or
http://blog.objet.com

Cautionary Statement Regarding Forward-Looking Statements

Statements in this press release regarding the merger of Stratasys, Inc. and
Objet Ltd., including, without limitation, statements regarding the management
of the combined company, the benefits of the proposed combination, the future
financial performance of the combined company after the merger, and any other
statements regarding future expectations, beliefs, goals, plans or prospects
constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Any statements that are not
statements of historical fact (including statements containing “believes,”
“anticipates,” “plans,” “expects,” “may,” “will,” “would,” “intends,”
“estimates” and similar expressions) should also be considered to be
forward-looking statements. There are a number of important factors that could
cause actual results or events to differ materially from those indicated by
such forward-looking statements, including: the risk that the businesses of
the two companies may not be integrated successfully; the risk that the
transaction may involve unexpected costs or unexpected liabilities; the risk
that synergies from the transaction may not be fully realized or may take
longer to realize than expected; the risk that management’s focus on and
disruptions arising from the transaction make it more difficult to maintain
relationships with customers, employees, or suppliers; and the other risks set
forth in the definitive proxy statement/prospectus filed with the SEC by
Stratasys, Inc. on August 8, 2012, as well as the other factors described in
the filings that Stratasys, Inc. has made with the SEC and that Stratasys Ltd.
will make with the SEC in the future. If one or more of these factors
materialize, or if any underlying assumptions prove incorrect, the actual
results, performance or achievements of the combined company may vary
materially from any future results, performance or achievements expressed or
implied by these forward-looking statements.

In addition, the statements in this document reflect the expectations and
beliefs of Stratasys as of the date of this document. Stratasys anticipates
that subsequent events and developments will cause its expectations and
beliefs to change. However, while Stratasys may elect to update these
forward-looking statements publicly in the future, it specifically disclaims
any obligation to do so. The forward-looking statements of Stratasys do not
reflect the potential impact of any future dispositions or strategic
transactions that may be undertaken. These forward-looking statements should
not be relied upon as representing Stratasys’ views as of any date after the
date of this document.

Contact:

Stratasys Ltd.
Investors:
Shane Glenn, +1-952-294-3416
Director, Investor Relations
shane.glenn@stratasys.com
or
Media:
Arita Mattsoff, +972 (0) 74 745 4338
Vice President, Marketing
arita.mattsoff@stratasys.com
 
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