News Release

In the first quarter of fiscal 1996, revenues were primarily generated from technology development contracts with industry consortia, and from conventional casting. Since Soligen has fully commercialized its DSPC technology, the Company has decreased its participation in research and development contracts. As a result, revenues from these activities declined by $91,000 to $36,000 in the first quarter of fiscal 1997.

Implementation of the second stage also called for the Company to redirect its sales team away from its conventional casting business to its Parts Now business. As a result conventional casting revenues decreased from $387,000 to $291,000. "The reduction in revenues from our conventional, non Parts Now, casting business has been mitigated by the increase in revenues from our Parts Now business," said Uziel. Losses for the quarter were $554,000 as compared with $405,000 in the first quarter of the previous fiscal year.

Soligen's DSPC technology is a proprietary fabrication process for metal parts that produces ceramic molds for metal casting directly from a CAD file. By using the DSPC technology, Soligen is able to produce a first article metal part bypassing the traditional need for tooling. Additionally, Parts Now® produces production tooling for larger runs of metal castings from the same CAD file as the approved part. By combining three key production elements: DSPC technology, conventional casting methods and Computerized Numerical Control (CNC) machine practices, the Company has created the first "one-stop-shop" for functional metal parts that are made directly from a CAD file and that are ready for assembly. As a result, Parts Now has become a single source for out-sourcing of metal parts.