DTM Corporation
Ticker:DTMC 1611 Headway Circle
Exchange:NASDAQ-National Market Austin, TX 78754
Industry:Manufacturing (SIC Code 3559) (512) 339-2922

Offering Information
Type of Shares:Common Shares Filing Date:5/21/96
U.S. Shares:3,039,000 Offer Date:5/2/97
Non-U.S. Shares:0 Filing Range:$8.00 - $9.00
Primary Shares:2,849,732 Offer Price:$8.00
Secondary Shares:189,268 Gross Spread:$0.56
Offering Amount: $25,831,500 Selling:$0.30
Expenses:$468,000 Reallowance:$0.10
Shares Out After:9,085,188
Spin out parent firm: BFGoodrich Co.

Primary Underwriting Group
ManagerTierPhone
A.G. Edwards & Sons, Inc.Lead Manager (314) 955-3039
Ladenburg, Thalmann & Co. Inc.Co-manager (212) 409-2300

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Vinson & Elkins
Bank's Law Firm: Gardere & Wynne
Auditor: Ernst & Young
Registrar/Transfer Agent: ChaseMellon Shareholder Services, L.L.C.

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 3/31/96 3/31/95 3/31/96
Revenue:$14.21$5.33$2.01Assets:$13.21
Net Income:-$4.00-$0.57-$1.33Curr Assets:
EPS:-$0.52-$0.07-$0.17Liabilities:$17.68
Prior EPS:-$0.54-$1.56Curr Liabilities:
Cash Flow/Oper:Equity:-$4.47
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
DTM Corporation develops, designs, manufactures, markets and supports, on an international basis, rapid prototyping and rapid tooling systems and related materials. The Company's selective laser sintering systems ("Systems") and materials are based on proprietary and patented selective laser sintering technology. Rapid prototyping is the creation of a solid three-dimensional model, prototype or pattern directly from three-dimensional computer aided design ("CAD") data. Rapid tooling is the creation of durable tooling from CAD data that can be subsequently employed to produce substantial quantities of parts for market introduction of a product. Use of the Company's SLS Systems significantly reduces the time required to produce models and prototypes for testing actual product fit and form, ergonomic design and functionality from what otherwise could be months or weeks to days or, in some cases, hours. The Company's SLS Systems are used to accelerate the design, development and market introduction of products in a wide range of industries, including but not limited to the automotive, aerospace, medical, electronics, telecommunications, computer, appliance, footwear, toy and power tool industries.

Competition
The market for rapid prototyping systems and materials is highly competitive. Several United States-based companies other than DTM are in various stages of developing and marketing rapid prototyping systems and services. These companies include 3D Systems Corporation, BPM Technology, Inc., Helisys, Inc., Sanders Prototype, Inc., Soligen Technologies. And Stratasys, Inc. Of these, 3D Systems, Helisys and Stratasys compete with DTM on a worldwide basis.

Business Plan
Since its inception, the company's focus has been on the development and improvement of the SLS Systems and related materials. The company believes that it is positioned to capitalize on its competitive advantages through the following strategies: 1) increase share of existing market applications; 2) capitalize on RAPIDTOOL process capability; 3) expand selective laser sintering materials offerings; 4) broaden SLS system product line; 5) expand distribution network.

Use of Proceeds
The proceeds from the proposed offering will be used to retire existing bank debt and borrowings from BFGoodrich and to fund working capital, research and development activities and expansion of the Company's distribution network.

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