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NASDAQ : SSYS




April 2012

             Stratasys, Inc. and Objet Ltd. Combining
                 to Create a Leader in 3D Printing




                   Building for Future Growth
Safe harbor statement                                                      NASDAQ : SSYS




Statements in this presentation about Stratasys’ beliefs, intentions and expectations,
including statements regarding the expected timing and ultimate closing of the merger
of Stratasys and Objet Ltd., as well as the benefits thereof, are forward-looking
statements. The statements involve risks and uncertainties, both known and unknown,
that may cause actual results to differ materially from those projected in this
presentation. Actual results may differ materially due to a number of factors, including
risks and uncertainties relating to Stratasys’ ability to penetrate the 3D printing
market; the success of Stratasys’ distribution agreement with HP; Stratasys’ ability to
achieve the growth rates experienced in preceding quarters; Stratasys’ ability to
introduce, produce and market consumable materials, and the market acceptance of
these materials; the impact of competitive products and pricing; Stratasys’ timely
development of new products and materials and market acceptance of those products
and materials; the success of Stratasys’ recent R&D initiative to expand the DDM
capabilities of its core FDM technology; the success of Stratasys’
RedEyeOnDemandTM and other paid parts services; and Stratasys’ ability to complete
its transaction with Objet Ltd. on the proposed terms and schedule and achieve the
anticipated benefits of the transaction. These and other applicable factors are
discussed in this presentation and in Stratasys’ filings with the Securities and
Exchange Commission, including its report on Form 10-K for the year ended
12/31/2011 and subsequent filings. Any forward-looking statements included in this
presentation are as of the date they are given, and Stratasys does not intend to update
them if its views later change, except as may be required by law. These forward-
looking statements should not be relied upon as representing Stratasys views as of
any date subsequent to the date they are given.




                                                                                           2
Important information for                                                                    NASDAQ : SSYS

investors and shareholders

In connection with the combination of Objet and Stratasys pursuant to an Agreement and Plan of
Merger (the “Merger”), Objet will file with the Securities and Exchange Commission (the “SEC”) a
registration statement on Form F-4, which will include a proxy statement/prospectus of Stratasys and a
prospectus of Objet, as well as other relevant materials in connection with the proposed transaction.
Stratasys will concurrently file the same proxy statement/prospectus with the SEC and will mail it to
Stratasys shareholders for purposes of soliciting proxies for voting in favor of approving the Merger at
a special meeting of Stratasys stockholders called for the purpose of approving the Merger Agreement
and the Merger. INVESTORS AND SHAREHOLDERS ARE URGED TO READ THE PROXY
STATEMENT/PROSPECTUS AND OTHER RELEVANT MATERIALS WHEN THEY BECOME AVAILABLE
BECAUSE THESE MATERIALS WILL CONTAIN IMPORTANT INFORMATION ABOUT STRATASYS,
OBJET AND THE PROPOSED TRANSACTION. The proxy statement/prospectus and other relevant
materials (when they become available) and any other related documents filed with the SEC may be
obtained free of charge on the SEC’s website at www.sec.gov or via the Stratasys website at
www.stratasys.com. Shareholders may also obtain a copy of the SEC filings free of charge upon
written request to Stratasys, Attention: Shane Glenn, Director of Investor Relations, 7665 Commerce
Way, Eden Prairie, Minnesota 55344.

Stratasys’ executive officers and directors may be deemed to be participants in the solicitation of
proxies from the shareholders of Stratasys in connection with the Merger. Information about
Stratasys’ executive officers and directors and their ownership of Stratasys common stock will be set
forth in Stratasys’ amended Annual Report on Form 10-K for the year ended December 31, 2011, which
will be filed with the SEC.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any
securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification under the securities laws of any such
jurisdiction.




                                                                                                              3
Building for future industry growth                            NASDAQ : SSYS




                             Portfolio of
                           Complementary
                              Products

                           Driving Market
                             Expansion

                            Expansive
                          Customer Reach

                         Strong Leadership
                               Team




        Combination creates a global leader in 3D printing space

                                                                           4
Key deal highlights                                                               NASDAQ : SSYS




Merger Structure     Stratasys and Objet to combine in a stock-for-stock merger

Ownership            55% owned by Stratasys shareholders and 45% owned
                     by Objet shareholders on a fully diluted basis

Listing/Ticker       – NASDAQ: SSYS
                     – Company name: Stratasys Ltd.

Board of Directors   4 seats designated by Stratasys and 4 seats designated by Objet;
                     1 additional seat designated by Stratasys and approved by Objet

Management           Blended management team led by Scott Crump as full-time
                     Chairman, and current Objet CEO, David Reis, as the new CEO
                     of the combined organization

Headquarters         Dual headquarters in Israel and Minnesota

Incorporation        Domiciled and incorporated in Israel; transaction is taxable for Stratasys
                     shareholders

Synergies            – Significant potential from combining the sales and marketing functions
                       of both companies, providing for market expansion and cross-selling
                       of complementary product lines
                     – Transaction expected to be accretive to cash EPS for Stratasys
                       shareholders within the first 12 months after closing

Timing               Transaction expected to close Q3 2012, following customary regulatory
                     review and approvals
                                                                                                  5
Objet fast facts                                                              NASDAQ : SSYS




Global 3D printing   – 3D printers and resin-based
                                                           Cumulative System Sales
company, offering      consumables
a wide range of        • More than 2,800 customers                                                                 3,378
high-performance       • Products range from entry-
products                 level to high-end printers

                     – Leading innovators since 1998
                       • Proprietary PolyJetTM printing                                                    2,449

                         technology
                       • Only technology with multi-
                         material 3D printing capability                                           1,880


                                                                                           1,516
                     – Growing revenue base
                       • 2011 revenue $121.1m
                                                                                   1,130
                       • 2009 – 2011 CAGR 34%
                                                                             736
                     – History of profitability
                       • 2011 net income $14.7m                        440

                                                                 229
                     – Based in Rehovot, Israel             69

                       • More than 430 employees
                                                           2003 2004 2005 2006 2007 2008 2009 2010 2011



                                                                                                                           6
Introduction to Objet offering                                                 NASDAQ : SSYS




Objet offers a       Objet 3D printers deliver high
range of printers    resolution and print quality                     Competitive advantages of
from the entry level                                                  Objet’s printing systems
to high end
                                                                      High resolution


                                                                      Fast print speed

                     Desktop Family   Eden Family     Connex Family
                     $19,900 –        $59,900 –       $160,000 –      Wide range of consumable materials
                     $31,900          $175,000        $240,000


                     Entry Level      Mid-Range        High End       Office friendly


                                                                      Low pre/post printing time
                             Advanced materials and features
                             Increased tray size
                             Increased capacity and duty cycle        Scalable technology


                                                                      Multi-material printing


                                                                      Composite materials


                                                                                                               7
Complementary technologies                              NASDAQ : SSYS




Three distinct 3D
printing platforms                                                                 FDM®
                                                                        Production-Grade
                                                                          Thermoplastics
                     PolyJetTM
                                                                          Highly Durable
                     High-
                     Performance
                                                             FDM   ®               Parts
                     Resins                                               Office Friendly
                                         PolyJet     TM
                                                          SolidScape®
                     High Feature                                        Functional Parts
                     Detail & Finish

                     Scalable                                              SolidScape®
                     Technology
                                                                            Wax material
                     Multi-Material
                     Printing                                                 Castability



                     Concept           Fit, Form          Functional     Direct Digital
                     Modeling          Prototyping        Prototyping    Manufacturing

                                                                                            8
Complementary product portfolios                                                                           NASDAQ : SSYS




Product portfolio      Concept Modeling ($15,000 – $30,000)
to address a broad
range of
applications         – Functional models                                                                                    – Highly detailed
                     – Office friendly                                                                                        models
                                                                                                                            – Speed


                                                          uPrint   Dimension                  Desktop Family



                       Rapid Prototyping ($50,000 – $260,000)


                     – Durable prototypes                                                                                   – Highly detailed
                     – High-performance                                                                                       prototypes
                       materials                                                                                            – Speed
                     – Functional tooling                                                                                   – Multi-material
                                                  Fortus 250mc     Fortus 400mc     Eden Family             Connex Family
                                                                                                                              printing


                       Direct Digital Manufacturing ($30,000 – $380,000)


                     – Finished part production                                                                             – Solid wax parts
                     – High speed and accuracy                                                                              – High precision
                     – Large parts                                                                                          – Highly castable


                                                                     Fortus 900mc             Solidscape®

                                                                                                                                                9
3D content universe is growing significantly                                                   NASDAQ : SSYS




Multi-year secular
growth opportunity
                                                                                    Reverse          CAD              Free 3D
                         Virtual design                        Medical
–   14 million total                                                                            e.g. Mechanical,      modeling
                                  Animation
                                                              CT and MRI          engineering     Architectural,
    CAD seats                                                  scanners                                               e.g. Google
                                                                                  3D scanners        Design            SketchUp
–   5 million 3D
    CAD seats
    and growing

–   Only 42,500
    systems
                                                                                      3D
    installed1
                                                                                   Content
                                                                                   Printing




                         Concept                                   Fit, Form              Functional               Direct Digital
                         Modeling                                  Prototyping            Prototyping              Manufacturing


                       1 42,541industrial systems installed at the end of 2010.                                                     10
                       Sources: Wohlers Report 2011 and Jon Peddle CAD Report.
Expanded footprint                                                              NASDAQ : SSYS

                           A global network of resellers and agents


                                                                                EMEA
                                                                          69


                                                                                       24

                                                Frankfurt,
          Minneapolis, MN, USA                  Germany
          Joint headquarters     Merrimack
                                 NH, USA        Baden-Baden,
                                                Germany                                     Tokyo, Japan
                                  Billerica
                                  MA, USA
                                                                               Shanghai, China
     Ontario, CA, USA
                                              Rehovot, Israel                                              Far East
                                              Joint headquarters
                                                                                   Hong Kong
                                                                                                                      51
          Americas                                           Bangalore, India                              31


         64


                    21




                                                                                        KEY
–   Total resellers and agents: 260                                                     Company Field offices

–   Total channel managers: 42
                                                                                                                           11
Expandable customer base with cross-selling   NASDAQ : SSYS

                              opportunities



End Markets

Aerospace and Defense


Architecture


Automotive



Consumer



Educational


Industrial & Commercial


Medical & Dental


Toys



This list is representative
                                                                                       12
Technology leadership                                                   NASDAQ : SSYS




Material chemical      Engineering and – Extensive know-how in multiple
formulations            manufacturing    3D printing technologies

                                           –   More than 500 patents granted
                                               and pending

                                           –   Objet’s PolyJet™ technology is the
                                               only technology with multi-material
                                               3D printing capability

                                           –   Proprietary portfolio of
                                               thermoplastic and resin
                                               consumables with a wide range
                                               of properties

                                           –   Significant focus on R&D

                                           –   Robust technological platforms
                                               that help enable future innovations
Electronic system   Software algorithms
development and       and user interface
integration


                        Shared culture of innovation

                                                                                     13
Expanded consumable offering                                               NASDAQ : SSYS




Durable                  Functional              ISO-Certified     High Performance
–   ABS                  – Anti-static           – High strength   –   Flame retardant
–   Production-grade     – High strength         – Sterilizable    –   Chemical-resistant
–   Realistic parts      – Manufacturing tools   – Food & drug     –   Low-toxicity
–   Translucent                                                    –   Finished parts




Rigid                    Flexible                Bio-compatible    Composite
–   Basic translucent    – High-elongation       – Dental          materials
–   Polypropylene-like   – High-elasticity       – Hearing aids    – Pre-defined Digital
–   High-temperature     – Low-modulus           – VeroBio           Materials™
–   ABS-like
–   Transparent




                                                                                            14
Management team                                                                              NASDAQ : SSYS




                                   Scott Crump                                             David Reis
                                   Chairman                                                CEO




– Co-Founder of Stratasys                              – CEO of Objet since March 2009
                                                          • Previously served as director of Objet
– CEO, President, and Chairman of Stratasys since           since 2003
  its inception in 1988
                                                       – CEO and President of NUR Macroprinters,
                                                         a wide format printer manufacturer acquired
– Inventor of the Stratasys FDM® Technology
                                                         by HP, from February 2006 to March 2008
– Co-Founder and Vice President of Sales               – Previously CEO and President of ImageID
  of IDEA, Inc. from 1982 to 1988, now called            and of Scitex Vision
  SI Technologies, Inc., a manufacturer
                                                       – M.B.A. from the University of Denver
  of force, load and pressure transducers
                                                       – B.A. in Economics and Management from
– Registered professional engineer and received          the Technion/Israel Institute of Technology
  a B.S. degree in mechanical engineering from
  Washington State University in 1976 and a business
  degree from the Anderson School of Business
  Management at UCLA


                                                                                                        15
Objet financial overview                                                                      NASDAQ : SSYS




3,378                                $121m                   61%                     $15m
Cumulative                           Total revenue           Gross margin            Net income
units sold                           (2011)                  (2011)                  (2011)


  Revenue ($m)                        Gross Margin (%)        Operating Margin (%)    Net Income ($m)
      Services
      Products
                          121.1
                                                                                                        14.7
                              15.3                                           14.5


                          105.8
                 87.9                          61.6
                                                      61.2            13.8
                                                                                               10.4
                 11.3
    67.5         76.6
   10.5                                                                                 7.6
   57.0

                                                               12.3
                                        56.9




   2009          2010     2011         2009    2010   2011     2009   2010   2011      2009    2010     2011


Source: F-1, March 22, 2012
                                                                                                               16
Stratasys financial overview                                                                            NASDAQ : SSYS




16,283                              $156m                              54%                     $22m
Cumulative                          Total revenue                      Gross margin            Net income
units sold                          (2011)                             (2011)                  (2011)


  Revenue ($m)                        Gross Margin (%)                  Operating Margin (%)    Net Income ($m)
      Services
      Products
                          155.9
                                                                                                                  22.5
                           28.4                                                        21.4

                 122.8
                          127.5
                 25.4
    99.0                                                        54.0            16.0

   25.1          97.5                                                                                    13.4


   73.8                                             49.7

                                                                          7.6
                                        46.9
                                                                                                  5.7




   2009          2010     2011          2009        2010       2011      2009   2010   2011      2009    2010     2011


Source: Supplemental 8-K, 02/11/11 & 02/07/12
Financials are non-GAAP. Reconciliations may be found in Appendix 1.                                                     17
Expected synergies &                                                           NASDAQ : SSYS

target operating model


    Near-term          – Accretive to cash earnings per share on a non-GAAP basis
    opportunity          within the first 12 months after closing


    Future revenue     – Cross-selling the complementary product line within the existing
    synergies            combined customer base
                       – Market expansion opportunities driven by an expanded sales reach
                         and combined product portfolio

    Operating and      – $7m to $8m of annual net cost synergies
    tax synergies           • Better allocation of current and future resources
                            • Combining sales and marketing functions reduces future hiring
                               needs
                            • Reduction in G&A and corporate overhead
                       – $3m to $4m of annual tax savings

    Long-term target   –   Revenue growth:        20%+
    operating model    –   Operating margin1:     20% to 25% of sales
                       –   Effective tax rate1:   15% to 20%
                       –   Net income margin1:    16% to 21% of sales




1   Non-GAAP.
                                                                                              18
Financials for FYE 12/31/11                                                                                 NASDAQ : SSYS




 Selected income statement
 items ($mm)
 Revenue                                                         155.9                         121.1
 YoY % growth                                                     32.3%                         37.8%
 Gross Profit                                                      82.4                          74.1
 % margin                                                          52.9%                         61.2%
 EBITDA                                                            39.4                          20.1
 % margin                                                          25.2%                         16.6%
 EBIT                                                              29.0                          17.5
 % margin                                                          18.6%                         14.5%
 Tax rate                                                          34.2%                          9.8%
 Net income                                                        20.6                          14.7
 % margin                                                          13.2%                         12.1%
 Non-GAAP net income                                               22.5                          14.7 (1)
 % margin                                                          14.4%                         12.1%

 Selected balance
 sheet items ($mm)

 Cash & cash equivalents (2)                                       67.3                          58.4

 Debt                                                                0.0                          0.0
                                             Source: FY2011 10-K,           Source: F-1, March 22, 2012
                                             supplemental 8-K, 02/07/12

(1)   Also reflects GAAP net income, as there are no non-GAAP adjustments
(2)   Includes investments                                                                                             19
Roadmap to completion                               NASDAQ : SSYS




– Announcement: April 16th, 2012

– Stratasys shareholder approval Q3 2012

– Satisfaction of regulatory requirements Q3 2012

– Transaction expected to be completed Q3 2012




                                                               20
Combination to create significant                   NASDAQ : SSYS

shareholder value


                      Premier
                     portfolio of
                    3D printing
                   solutions and
                    technology




     Financially                      Exciting
     compelling                       growth
    combination                     opportunities




                     Powerful
                     strategic
                     position


                                                               21
Appendix 1: Reconciliation of Stratasys GAAP                                                                                   NASDAQ : SSYS

to non-GAAP results


                                                                                                         Twelve Months Ended December 31

($ in millions)                                                                                             2009            2010           2011
Reconciliation from GAAP Revenue to Non-GAAP Revenue

GAAP revenue                                                                                                  $99.0          $117.8          $155.9
Fair value of warrant related to OEM agreement (1)                                                                  -            5.0                 -
Non-GAAP revenue                                                                                              $99.0          $122.8          $155.9


Reconciliation from GAAP Gross Profit to Non-GAAP Gross Profit
GAAP gross profit                                                                                             $46.4           $56.1           $82.4
Fair value of warrant related to OEM agreement             (1)                                                      -            5.0                 -
Amortization expense related to acquired Solidscape, Inc. intangible assets                                         -               -            1.2
Revaluation of Solidscape, Inc. inventory at the time of acquisition                                                -               -            0.6
Non-GAAP gross profit                                                                                         $46.4           $61.1           $84.1




(1)   Represents the fair value of a warrant issued during the first quarter of 2010 in connection with the Hewlett-Packard Company OEM agreement.

                                                                                                                                                     22
Appendix 1: Reconciliation of Stratasys GAAP                                                                                   NASDAQ : SSYS

to non-GAAP results


                                                                                                        Twelve Months Ended December 31

($ in millions)                                                                                             2009           2010            2011
Reconciliation from GAAP Operating Income to Non-GAAP Operating Income

GAAP operating income                                                                                           $5.8          $13.5           $29.0
Fair value of warrant related to OEM agreement (1)                                                                  -            5.0                 -
Stock-based compensation                                                                                         0.9             1.2             1.6
Restructuring (2)                                                                                                0.8                -                -
Amortization expense related to acquired Solidscape, Inc. intangible assets                                         -               -            1.5
Revaluation of Solidscape, Inc. inventory at the time of acquisition                                                -               -            0.6
Expense for the acquisition of Solidscape, Inc.                                                                     -               -            0.6
Non-GAAP operating income                                                                                       $7.5          $19.7           $33.3




(1)   Represents the fair value of a warrant issued during the first quarter of 2010 in connection with the Hewlett-Packard Company OEM agreement.
(2)   Represents severance and other related costs associated with Stratasys’ restructuring in the first quarter of 2009.

                                                                                                                                                     23
Appendix 1: Reconciliation of Stratasys GAAP                                                                                   NASDAQ : SSYS

to non-GAAP results


                                                                                                        Twelve Months Ended December 31

($ in millions)                                                                                             2009           2010            2011
Reconciliation from GAAP Net Income to Non-GAAP Net Income

GAAP net income                                                                                                 $4.1            $9.4          $20.6
Fair value of warrant related to OEM agreement (1)                                                                  -            5.0                 -
Stock-based compensation                                                                                         0.9             1.2             1.6
Restructuring (2)                                                                                                0.8                -                -
Amortization expense related to acquired Solidscape, Inc. intangible assets                                         -               -            1.5
Revaluation of Solidscape, Inc. inventory                                                                           -               -            0.6
Expense for the acquisition of Solidscape, Inc.                                                                     -               -            0.6
Investment impairments        (3)                                                                                0.4                -                -
Gain on sale of     investments (4)                                                                                 -               -          (1.8)
Tax benefit related to non-GAAP adjustments                                                                    (0.5)           (2.2)           (0.6)
Non-GAAP net income                                                                                             $5.7          $13.4           $22.5




(1)   Represents the fair value of a warrant issued during the first quarter of 2010 in connection with the Hewlett-Packard Company OEM agreement.
(2)   Represents severance and other related costs associated with Stratasys’ restructuring in the first quarter of 2009.
(3)   Represents a reduction in the assessed fair values of an auction rate security investment and an equity investment that Stratasys
      considered to be other than temporary.
(4)   Represents a gain of $1.2 million on the sale of an equity investment during the first quarter of 2011 and a gain of $0.6 million on the
      sale of an auction rate security during the third quarter of 2011.

                                                                                                                                                     24
Appendix 1: Reconciliation of Stratasys GAAP              NASDAQ : SSYS

to non-GAAP results


($ in millions)                               FYE 2011
Reconciliation from GAAP Net Income to EBIT

GAAP net income                                  $20.6
Income tax expense                                10.7
Interest income, net                              (0.9)
Foreign currency transaction losses, net           0.9
Other income, net                                 (2.3)
EBIT                                             $29.0


Reconciliation from EBIT to EBITDA

EBIT                                             $29.0
Depreciation                                       5.9
Amortization                                       4.5
EBITDA                                           $39.4




                                                                     25
Appendix 2: Reconciliation of Objet GAAP                 NASDAQ : SSYS

to non-GAAP results


($ in millions)                               FYE 2011
Reconciliation from GAAP Net Income to EBIT

GAAP net income                                  $14.7
Income tax expense                                 1.6
Finance expense                                    1.2
EBIT                                             $17.5


Reconciliation from EBIT to EBITDA

EBIT                                             $17.5
Depreciation                                       2.6
Amortization                                         -
EBITDA                                           $20.1




                                                                    26

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Stratasys and Objet Merger Presentation

  • 1. NASDAQ : SSYS April 2012 Stratasys, Inc. and Objet Ltd. Combining to Create a Leader in 3D Printing Building for Future Growth
  • 2. Safe harbor statement NASDAQ : SSYS Statements in this presentation about Stratasys’ beliefs, intentions and expectations, including statements regarding the expected timing and ultimate closing of the merger of Stratasys and Objet Ltd., as well as the benefits thereof, are forward-looking statements. The statements involve risks and uncertainties, both known and unknown, that may cause actual results to differ materially from those projected in this presentation. Actual results may differ materially due to a number of factors, including risks and uncertainties relating to Stratasys’ ability to penetrate the 3D printing market; the success of Stratasys’ distribution agreement with HP; Stratasys’ ability to achieve the growth rates experienced in preceding quarters; Stratasys’ ability to introduce, produce and market consumable materials, and the market acceptance of these materials; the impact of competitive products and pricing; Stratasys’ timely development of new products and materials and market acceptance of those products and materials; the success of Stratasys’ recent R&D initiative to expand the DDM capabilities of its core FDM technology; the success of Stratasys’ RedEyeOnDemandTM and other paid parts services; and Stratasys’ ability to complete its transaction with Objet Ltd. on the proposed terms and schedule and achieve the anticipated benefits of the transaction. These and other applicable factors are discussed in this presentation and in Stratasys’ filings with the Securities and Exchange Commission, including its report on Form 10-K for the year ended 12/31/2011 and subsequent filings. Any forward-looking statements included in this presentation are as of the date they are given, and Stratasys does not intend to update them if its views later change, except as may be required by law. These forward- looking statements should not be relied upon as representing Stratasys views as of any date subsequent to the date they are given. 2
  • 3. Important information for NASDAQ : SSYS investors and shareholders In connection with the combination of Objet and Stratasys pursuant to an Agreement and Plan of Merger (the “Merger”), Objet will file with the Securities and Exchange Commission (the “SEC”) a registration statement on Form F-4, which will include a proxy statement/prospectus of Stratasys and a prospectus of Objet, as well as other relevant materials in connection with the proposed transaction. Stratasys will concurrently file the same proxy statement/prospectus with the SEC and will mail it to Stratasys shareholders for purposes of soliciting proxies for voting in favor of approving the Merger at a special meeting of Stratasys stockholders called for the purpose of approving the Merger Agreement and the Merger. INVESTORS AND SHAREHOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT MATERIALS WHEN THEY BECOME AVAILABLE BECAUSE THESE MATERIALS WILL CONTAIN IMPORTANT INFORMATION ABOUT STRATASYS, OBJET AND THE PROPOSED TRANSACTION. The proxy statement/prospectus and other relevant materials (when they become available) and any other related documents filed with the SEC may be obtained free of charge on the SEC’s website at www.sec.gov or via the Stratasys website at www.stratasys.com. Shareholders may also obtain a copy of the SEC filings free of charge upon written request to Stratasys, Attention: Shane Glenn, Director of Investor Relations, 7665 Commerce Way, Eden Prairie, Minnesota 55344. Stratasys’ executive officers and directors may be deemed to be participants in the solicitation of proxies from the shareholders of Stratasys in connection with the Merger. Information about Stratasys’ executive officers and directors and their ownership of Stratasys common stock will be set forth in Stratasys’ amended Annual Report on Form 10-K for the year ended December 31, 2011, which will be filed with the SEC. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. 3
  • 4. Building for future industry growth NASDAQ : SSYS Portfolio of Complementary Products Driving Market Expansion Expansive Customer Reach Strong Leadership Team Combination creates a global leader in 3D printing space 4
  • 5. Key deal highlights NASDAQ : SSYS Merger Structure Stratasys and Objet to combine in a stock-for-stock merger Ownership 55% owned by Stratasys shareholders and 45% owned by Objet shareholders on a fully diluted basis Listing/Ticker – NASDAQ: SSYS – Company name: Stratasys Ltd. Board of Directors 4 seats designated by Stratasys and 4 seats designated by Objet; 1 additional seat designated by Stratasys and approved by Objet Management Blended management team led by Scott Crump as full-time Chairman, and current Objet CEO, David Reis, as the new CEO of the combined organization Headquarters Dual headquarters in Israel and Minnesota Incorporation Domiciled and incorporated in Israel; transaction is taxable for Stratasys shareholders Synergies – Significant potential from combining the sales and marketing functions of both companies, providing for market expansion and cross-selling of complementary product lines – Transaction expected to be accretive to cash EPS for Stratasys shareholders within the first 12 months after closing Timing Transaction expected to close Q3 2012, following customary regulatory review and approvals 5
  • 6. Objet fast facts NASDAQ : SSYS Global 3D printing – 3D printers and resin-based Cumulative System Sales company, offering consumables a wide range of • More than 2,800 customers 3,378 high-performance • Products range from entry- products level to high-end printers – Leading innovators since 1998 • Proprietary PolyJetTM printing 2,449 technology • Only technology with multi- material 3D printing capability 1,880 1,516 – Growing revenue base • 2011 revenue $121.1m 1,130 • 2009 – 2011 CAGR 34% 736 – History of profitability • 2011 net income $14.7m 440 229 – Based in Rehovot, Israel 69 • More than 430 employees 2003 2004 2005 2006 2007 2008 2009 2010 2011 6
  • 7. Introduction to Objet offering NASDAQ : SSYS Objet offers a Objet 3D printers deliver high range of printers resolution and print quality Competitive advantages of from the entry level Objet’s printing systems to high end High resolution Fast print speed Desktop Family Eden Family Connex Family $19,900 – $59,900 – $160,000 – Wide range of consumable materials $31,900 $175,000 $240,000 Entry Level Mid-Range High End Office friendly Low pre/post printing time Advanced materials and features Increased tray size Increased capacity and duty cycle Scalable technology Multi-material printing Composite materials 7
  • 8. Complementary technologies NASDAQ : SSYS Three distinct 3D printing platforms FDM® Production-Grade Thermoplastics PolyJetTM Highly Durable High- Performance FDM ® Parts Resins Office Friendly PolyJet TM SolidScape® High Feature Functional Parts Detail & Finish Scalable SolidScape® Technology Wax material Multi-Material Printing Castability Concept Fit, Form Functional Direct Digital Modeling Prototyping Prototyping Manufacturing 8
  • 9. Complementary product portfolios NASDAQ : SSYS Product portfolio Concept Modeling ($15,000 – $30,000) to address a broad range of applications – Functional models – Highly detailed – Office friendly models – Speed uPrint Dimension Desktop Family Rapid Prototyping ($50,000 – $260,000) – Durable prototypes – Highly detailed – High-performance prototypes materials – Speed – Functional tooling – Multi-material Fortus 250mc Fortus 400mc Eden Family Connex Family printing Direct Digital Manufacturing ($30,000 – $380,000) – Finished part production – Solid wax parts – High speed and accuracy – High precision – Large parts – Highly castable Fortus 900mc Solidscape® 9
  • 10. 3D content universe is growing significantly NASDAQ : SSYS Multi-year secular growth opportunity Reverse CAD Free 3D Virtual design Medical – 14 million total e.g. Mechanical, modeling Animation CT and MRI engineering Architectural, CAD seats scanners e.g. Google 3D scanners Design SketchUp – 5 million 3D CAD seats and growing – Only 42,500 systems 3D installed1 Content Printing Concept Fit, Form Functional Direct Digital Modeling Prototyping Prototyping Manufacturing 1 42,541industrial systems installed at the end of 2010. 10 Sources: Wohlers Report 2011 and Jon Peddle CAD Report.
  • 11. Expanded footprint NASDAQ : SSYS A global network of resellers and agents EMEA 69 24 Frankfurt, Minneapolis, MN, USA Germany Joint headquarters Merrimack NH, USA Baden-Baden, Germany Tokyo, Japan Billerica MA, USA Shanghai, China Ontario, CA, USA Rehovot, Israel Far East Joint headquarters Hong Kong 51 Americas Bangalore, India 31 64 21 KEY – Total resellers and agents: 260 Company Field offices – Total channel managers: 42 11
  • 12. Expandable customer base with cross-selling NASDAQ : SSYS opportunities End Markets Aerospace and Defense Architecture Automotive Consumer Educational Industrial & Commercial Medical & Dental Toys This list is representative 12
  • 13. Technology leadership NASDAQ : SSYS Material chemical Engineering and – Extensive know-how in multiple formulations manufacturing 3D printing technologies – More than 500 patents granted and pending – Objet’s PolyJet™ technology is the only technology with multi-material 3D printing capability – Proprietary portfolio of thermoplastic and resin consumables with a wide range of properties – Significant focus on R&D – Robust technological platforms that help enable future innovations Electronic system Software algorithms development and and user interface integration Shared culture of innovation 13
  • 14. Expanded consumable offering NASDAQ : SSYS Durable Functional ISO-Certified High Performance – ABS – Anti-static – High strength – Flame retardant – Production-grade – High strength – Sterilizable – Chemical-resistant – Realistic parts – Manufacturing tools – Food & drug – Low-toxicity – Translucent – Finished parts Rigid Flexible Bio-compatible Composite – Basic translucent – High-elongation – Dental materials – Polypropylene-like – High-elasticity – Hearing aids – Pre-defined Digital – High-temperature – Low-modulus – VeroBio Materials™ – ABS-like – Transparent 14
  • 15. Management team NASDAQ : SSYS Scott Crump David Reis Chairman CEO – Co-Founder of Stratasys – CEO of Objet since March 2009 • Previously served as director of Objet – CEO, President, and Chairman of Stratasys since since 2003 its inception in 1988 – CEO and President of NUR Macroprinters, a wide format printer manufacturer acquired – Inventor of the Stratasys FDM® Technology by HP, from February 2006 to March 2008 – Co-Founder and Vice President of Sales – Previously CEO and President of ImageID of IDEA, Inc. from 1982 to 1988, now called and of Scitex Vision SI Technologies, Inc., a manufacturer – M.B.A. from the University of Denver of force, load and pressure transducers – B.A. in Economics and Management from – Registered professional engineer and received the Technion/Israel Institute of Technology a B.S. degree in mechanical engineering from Washington State University in 1976 and a business degree from the Anderson School of Business Management at UCLA 15
  • 16. Objet financial overview NASDAQ : SSYS 3,378 $121m 61% $15m Cumulative Total revenue Gross margin Net income units sold (2011) (2011) (2011) Revenue ($m) Gross Margin (%) Operating Margin (%) Net Income ($m) Services Products 121.1 14.7 15.3 14.5 105.8 87.9 61.6 61.2 13.8 10.4 11.3 67.5 76.6 10.5 7.6 57.0 12.3 56.9 2009 2010 2011 2009 2010 2011 2009 2010 2011 2009 2010 2011 Source: F-1, March 22, 2012 16
  • 17. Stratasys financial overview NASDAQ : SSYS 16,283 $156m 54% $22m Cumulative Total revenue Gross margin Net income units sold (2011) (2011) (2011) Revenue ($m) Gross Margin (%) Operating Margin (%) Net Income ($m) Services Products 155.9 22.5 28.4 21.4 122.8 127.5 25.4 99.0 54.0 16.0 25.1 97.5 13.4 73.8 49.7 7.6 46.9 5.7 2009 2010 2011 2009 2010 2011 2009 2010 2011 2009 2010 2011 Source: Supplemental 8-K, 02/11/11 & 02/07/12 Financials are non-GAAP. Reconciliations may be found in Appendix 1. 17
  • 18. Expected synergies & NASDAQ : SSYS target operating model Near-term – Accretive to cash earnings per share on a non-GAAP basis opportunity within the first 12 months after closing Future revenue – Cross-selling the complementary product line within the existing synergies combined customer base – Market expansion opportunities driven by an expanded sales reach and combined product portfolio Operating and – $7m to $8m of annual net cost synergies tax synergies • Better allocation of current and future resources • Combining sales and marketing functions reduces future hiring needs • Reduction in G&A and corporate overhead – $3m to $4m of annual tax savings Long-term target – Revenue growth: 20%+ operating model – Operating margin1: 20% to 25% of sales – Effective tax rate1: 15% to 20% – Net income margin1: 16% to 21% of sales 1 Non-GAAP. 18
  • 19. Financials for FYE 12/31/11 NASDAQ : SSYS Selected income statement items ($mm) Revenue 155.9 121.1 YoY % growth 32.3% 37.8% Gross Profit 82.4 74.1 % margin 52.9% 61.2% EBITDA 39.4 20.1 % margin 25.2% 16.6% EBIT 29.0 17.5 % margin 18.6% 14.5% Tax rate 34.2% 9.8% Net income 20.6 14.7 % margin 13.2% 12.1% Non-GAAP net income 22.5 14.7 (1) % margin 14.4% 12.1% Selected balance sheet items ($mm) Cash & cash equivalents (2) 67.3 58.4 Debt 0.0 0.0 Source: FY2011 10-K, Source: F-1, March 22, 2012 supplemental 8-K, 02/07/12 (1) Also reflects GAAP net income, as there are no non-GAAP adjustments (2) Includes investments 19
  • 20. Roadmap to completion NASDAQ : SSYS – Announcement: April 16th, 2012 – Stratasys shareholder approval Q3 2012 – Satisfaction of regulatory requirements Q3 2012 – Transaction expected to be completed Q3 2012 20
  • 21. Combination to create significant NASDAQ : SSYS shareholder value Premier portfolio of 3D printing solutions and technology Financially Exciting compelling growth combination opportunities Powerful strategic position 21
  • 22. Appendix 1: Reconciliation of Stratasys GAAP NASDAQ : SSYS to non-GAAP results Twelve Months Ended December 31 ($ in millions) 2009 2010 2011 Reconciliation from GAAP Revenue to Non-GAAP Revenue GAAP revenue $99.0 $117.8 $155.9 Fair value of warrant related to OEM agreement (1) - 5.0 - Non-GAAP revenue $99.0 $122.8 $155.9 Reconciliation from GAAP Gross Profit to Non-GAAP Gross Profit GAAP gross profit $46.4 $56.1 $82.4 Fair value of warrant related to OEM agreement (1) - 5.0 - Amortization expense related to acquired Solidscape, Inc. intangible assets - - 1.2 Revaluation of Solidscape, Inc. inventory at the time of acquisition - - 0.6 Non-GAAP gross profit $46.4 $61.1 $84.1 (1) Represents the fair value of a warrant issued during the first quarter of 2010 in connection with the Hewlett-Packard Company OEM agreement. 22
  • 23. Appendix 1: Reconciliation of Stratasys GAAP NASDAQ : SSYS to non-GAAP results Twelve Months Ended December 31 ($ in millions) 2009 2010 2011 Reconciliation from GAAP Operating Income to Non-GAAP Operating Income GAAP operating income $5.8 $13.5 $29.0 Fair value of warrant related to OEM agreement (1) - 5.0 - Stock-based compensation 0.9 1.2 1.6 Restructuring (2) 0.8 - - Amortization expense related to acquired Solidscape, Inc. intangible assets - - 1.5 Revaluation of Solidscape, Inc. inventory at the time of acquisition - - 0.6 Expense for the acquisition of Solidscape, Inc. - - 0.6 Non-GAAP operating income $7.5 $19.7 $33.3 (1) Represents the fair value of a warrant issued during the first quarter of 2010 in connection with the Hewlett-Packard Company OEM agreement. (2) Represents severance and other related costs associated with Stratasys’ restructuring in the first quarter of 2009. 23
  • 24. Appendix 1: Reconciliation of Stratasys GAAP NASDAQ : SSYS to non-GAAP results Twelve Months Ended December 31 ($ in millions) 2009 2010 2011 Reconciliation from GAAP Net Income to Non-GAAP Net Income GAAP net income $4.1 $9.4 $20.6 Fair value of warrant related to OEM agreement (1) - 5.0 - Stock-based compensation 0.9 1.2 1.6 Restructuring (2) 0.8 - - Amortization expense related to acquired Solidscape, Inc. intangible assets - - 1.5 Revaluation of Solidscape, Inc. inventory - - 0.6 Expense for the acquisition of Solidscape, Inc. - - 0.6 Investment impairments (3) 0.4 - - Gain on sale of investments (4) - - (1.8) Tax benefit related to non-GAAP adjustments (0.5) (2.2) (0.6) Non-GAAP net income $5.7 $13.4 $22.5 (1) Represents the fair value of a warrant issued during the first quarter of 2010 in connection with the Hewlett-Packard Company OEM agreement. (2) Represents severance and other related costs associated with Stratasys’ restructuring in the first quarter of 2009. (3) Represents a reduction in the assessed fair values of an auction rate security investment and an equity investment that Stratasys considered to be other than temporary. (4) Represents a gain of $1.2 million on the sale of an equity investment during the first quarter of 2011 and a gain of $0.6 million on the sale of an auction rate security during the third quarter of 2011. 24
  • 25. Appendix 1: Reconciliation of Stratasys GAAP NASDAQ : SSYS to non-GAAP results ($ in millions) FYE 2011 Reconciliation from GAAP Net Income to EBIT GAAP net income $20.6 Income tax expense 10.7 Interest income, net (0.9) Foreign currency transaction losses, net 0.9 Other income, net (2.3) EBIT $29.0 Reconciliation from EBIT to EBITDA EBIT $29.0 Depreciation 5.9 Amortization 4.5 EBITDA $39.4 25
  • 26. Appendix 2: Reconciliation of Objet GAAP NASDAQ : SSYS to non-GAAP results ($ in millions) FYE 2011 Reconciliation from GAAP Net Income to EBIT GAAP net income $14.7 Income tax expense 1.6 Finance expense 1.2 EBIT $17.5 Reconciliation from EBIT to EBITDA EBIT $17.5 Depreciation 2.6 Amortization - EBITDA $20.1 26