News Releases

SOLIGEN TECHNOLOGIES REPORTS THIRD QUARTER OPERATING RESULTS

Total revenues for the third quarter increased to $1.32 million, from $1.19 million in the corresponding period a year earlier, and for the nine months revenues amounted to $4.12 million, compared with $3.69 million in the year- earlier corresponding period.

For the quarter, the net loss amounted to $455,000, equal to 1 cent per share, compared to a year-ago loss of $207,000, or 1 cent a share. For the nine months ended December 31, 1998 the net loss totaled $1.37 million, or 4 cents a share, compared to a deficit of $868,000 or 3 cents a share, in the corresponding year-ago period.

"The improvement in third quarter operating results over the second quarter of this year is encouraging," said Yehoram Uziel, Chairman and Chief Executive Officer. "Soligen has invested in additional capacity, and as we attain higher order rates, we would anticipate improved operating margins. Meanwhile, we have been successful in reducing general and administrative costs in the recent third quarter as we continue to focus on heightening efficiency."

Soligen's Direct Shell Production casting (DSPC) technology is a proprietary fabrication process for metal parts that produces ceramic molds for metal casting directly from a Computer aided Design (CAD) file. Soligen has broadened its offerings by combining DSPC with conventional casting and CNC machining practices to offer a "one-stop shop" service called Parts Now.

Parts Now enables the Company to substantially reduce the time and costs of brining new products to market by quickly fabricating metal parts from the engineer's CAD file. Major applications include rapid manufacturing of functional prototypes and tooling for mass production of parts in a variety of industries including automotive, aerospace, hydraulic and pneumatic pumps and valves, turbines, power generators and industrial products.

Using its DSPC^® technology, Soligen is able to produce a first article metal part by passing the traditional need for tooling. It thus makes possible the postponement of the design and fabrication of expensive and time consuming production tooling until parts are functionally tested. Soligen also rapidly produces production tooling, for larger runs of metal castings, from the same CAD file. By combining three production elements -- DSPC technology, conventional casting methods and Computerozed Numerical Control (CNC) machine practices -- Soligen has created the first "one-stop-shop" rapid manufacturing facility for functional metal parts made directly from a CAD file. This complete service, trademarked as Parts Now^®, has enabled Soligen to becomes a singular out-sourcer for metal parts.

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, time development and release of new products by strategic suppliers and customers, the effort 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.