MICHELE MARCHESAN|WWW.3DSYSTEMS.COM|NYSE:DDD Why You Should Sell Production Systems.

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MICHELE MARCHESAN| Why You Should Sell Production Systems

Production Systems includes ProX series – ProX 500 SLS – Pro X 950 SLA – Pro X 100 Direct Metals – Pro X 200 Direct Metals – Pro X 300 Direct Metals I Pro 8000 SLA

Where do production Systems sell well Large and mid size OEMs with many Engineers on staff – Centralized Production of Rapid Prototypes Technology Companies that want to keep IP in house Universities Medical and Dental companies that are driving Patient Specific Applications Foundries for the production of casting patterns

Custom Hearing Aids (SLA) Orthopedics (SLS) Dental Prosthetics (MJM) Orthodontics (SLA) It is likely these four applications produce more patient specific custom medical devices per day than all the industrial “RP” machines in the world combined Key Healthcare applications

Why do customers buy them? Lowest cost to produce parts fast Large build volumes to accommodate large amounts of parts and large parts. Repeatable and accurate Reliable scalable

Why get involved? Because You can make a lot of money! I Pro 8000 sells for $550,000 – Reseller makes 10%-20% depending on the program you qualify for – $55,000 - $110,000 margin on the initial sale – On average systems will use $50,000/year of material at 20% discount – Reseller makes $10,000 in margin from consumables. ProX 500 SLS sells for $450,000 – Reseller makes 10%-20% depending on the program you qualify for – $45,000 - $90,000 margin on the initial sale – On average systems will use $25,000/year of material at 20% discount – Reseller makes $5,000 in margin from consumables. Pro X 300 sells for $800,000 – Reseller makes 10%-20% depending on the program you qualify for – $80,000 - $160,000 margin on the initial sale. – On average systems will use $20,000/year of material at 20% discount – Reseller makes $4,000 in margin from consumables.

Why get involved? Because You can make a lot of money! I Pro 8000 sells for $550,000 – On average systems will use $50,000/year of material at 20% discount ProX 500 SLS sells for $450,000 – On average systems will use $25,000/year of material at 20% discount Pro X 300 sells for $800,000 – On average systems will use $20,000/year of material at 20% discount.

What do you need to do to be successful Learn the products – Dedicate a technical resource within your company to become the product specialist or Application Engineer. – Staff with dedicated production equipment sales people that know how to present, quote and close sales. Have demo systems to show prospects Show good benchmarks that really show off the system capabilities Develop ROIs with customers to create justification. Stock Materials for fast delivery

Work smart and productively We have a large installed base of systems that we will continue to sell, service and support directly (House Accounts) – Please respect these accounts and do not try to cannibalize. – Find new customers for you and 3D Service Providers are House Accounts Service will continue to be done by 3D factory trained Engineers We are not making materials for legacy systems available for resale.

NYSE: DDD Thank You