News Release

SOLIGEN TECHNOLOGY REPORTS SOLID SECOND QUARTER PROGRESS

Led by a strong gain at Parts Now programs, revenues for the second fiscal quarter ended September 30, 1999 rose to $1,761,0000, from $1,167,000 in the corresponding year-earlier period, a gain of 51%. Gross profit increased to $392,000, from $99,000 in the corresponding year-earlier period and the gross margin improved to 22%, from 8%. Operating expenses were $747,000, down from $763,000 in the year-earlier period. The net loss declined to $401,000, or $0.01 per share, compared with a net loss of $715,000, or $0.02 per share, in the corresponding year-ago period.

For the first fiscal half ended September 30, 1999, revenues increased 20% to $3,368,000, from $2,807,000 in the corresponding year-ago period. Six-month gross margins increased to 29%, from 23%. The net loss totaled $521,000, or $0.02 per share, compared with a net loss of $918,000, or $0.03 per share, in the corresponding period a year earlier.

Parts Now programs revenues in the fiscal second quarter increased to $1,160,000, from $467,000 a year-earlier, an increase of 148%. The Parts Now program is a one stop shop production system employing the Company's proprietary DSPC technology in conjunction with conventional casting and CNC machining. It provides customers with a rapid and cost effective program of launching products based on complex cast metal parts, such as critical engine components. It also provides customers with significantly higher flexibility in applying design changes during the development phase thereby enabling Soligen to make casting tools right the first time using DSPC to functionally test parts prior to finalizing tool design.

``Soligen is making significant progress, and we are highly encouraged,'' said Yehoram Uziel, Chairman and Chief Executive Officer. ``In prior years the second quarter was slow as demand for prototypes was affected by summer vacations. We believe results of this quarter, particularly the strong showing in Parts Now programs, are a clear indication that our turnkey solutions are achieving wider recognition and appreciation. The transition from being a prototype supplier to a solutions provider is the key to increasing our revenues and margins.'' Mr. Uziel noted that Parts Now programs are approaching a paradigm shift in manufacturing, since they enable customers to functionally test the product prior to making its production tooling. ``The value added in a Parts Now program is higher by far than using rapid prototyping independently of conventional casting,'' he said.

``The increase in revenues in the second quarter has directly and favorably affected the bottom line,'' commented Mr. Uziel. ``We have kept operating expenses down, and we look forward to increasing operating margins and with it increasing our shareholders' value. In addition, we are beginning to see results from our expanded sales organization, which focused last year on offering Parts Now programs, in addition to rapid casting of prototypes. Soligen now has sales engineers located in our strategic Midwest markets. It is a very exciting time for Soligen.''

Soligen is able to rapidly manufacture cast metal parts, bypassing the traditional need for tooling, by employing Soligen's DSPC® technology. The DSPC technology is a proprietary fabrication process for metal parts that produces ceramic molds for metal castings directly from a CAD file. Consequently, it enables postponement of design and the fabrication of expensive and time consuming casting tooling until after the parts are functionally tested, thus increasing the probability of making production tooling once and correctly on the first attempt. Additionally, Soligen rapidly 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) machining 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. This complete service, trademarked as Parts Now®, has become a single source for rapidly manufactured metal parts.

DSPC® and Parts Now® are registered trademarks of Soligen.

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Except for the historical information herein, the matters discussed in this news release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary significantly based on a number of factors, including, but not limited to, risks in product and technology development, market acceptance of new products and continuing product demand, the impact of competitive products and pricing, changing economic conditions, both here and abroad, timing of development and release of new products by strategic suppliers and customers, the effect of the Company's accounting policies and other risk factors detailed in the Company's most recent annual report and other filings with the Securities and Exchange Commission.