Geomagic Achieves 12-Month Positive Cash Flow

Major sales and new business relationships bring bright forecast for 2002

RESEARCH TRIANGLE PARK, N.C., January 21, 2002 -Geomagic announced today that it has achieved positive cash flow from operations over the last 12 months. Based on major sales and new business agreements in 2001, the company expects continued growth in 2002. Geomagic provides 3D photography solutions for rapid manufacturing, mass customization and quality assurance.

Geomagic produced the positive cash flow by significantly increasing revenues, fine-tuning its worldwide resellers network, and carefully managing expenses, according to Willis Lumpkin, the company's COO and CFO.

"This is a significant milestone for Geomagic," says Lumpkin. "For a full year, we have maintained a self-sufficient cash position. Because of this, Raindrop continues to thrive even during a difficult market. By continuing to manage our company for profitability, we feel confident about our ability to grow into existing and new markets."

2001 will be noted as the year that Geomagic's technology and marketing expertise became recognized by major vendors and users of engineering and manufacturing technologies. Geomagic achieved the following significant sales, partnerships and awards in 2001:

• A $1.8-million software licensing and development contract with Align Technology (NASDAQ: ALGN), maker of the Invisalign orthodontic system.
• A strategic licensing and development arrangement with PTC (NASDAQ: PMTC) for incorporating Geomagic's technology into future versions of Pro/ENGINEER, PTC's market-leading mechanical computer-aided design (MCAD) software, and ICEM Surf, PTC's premier surfacing system.
• A development and co-marketing partnership with Minolta Corporation's Instrument Systems Division for new integrated technologies for reverse engineering, rapid surfacing, rapid inspection, and 3-D photography.
• A $350,000 small business innovation award from the National Science Foundation (NSF) to continue research into 3D photography technology that helps companies mass-manufacture highly customized products.
• An OEM reseller agreement with Perceptron Inc., a leader in real-time data collection, analysis, measurement and control software technologies.
• A laser scanning system for Boeing with software development of a prototype, rapid inspection system for certain manufactured airplane parts.
• A development, marketing and sales agreement with 3D Systems (Nasdaq: TDSC), the leader in 3D stereolithography systems, to provide turnkey hardware and software solutions for rapid manufacturing.
• An OEM reseller agreement with Laser Design Inc., a leading manufacturer of 3D laser digitizing systems used for rapid inspection applications.
• Licensing of numerous software seats to major automotive manufacturers, including Toyota, Honda, Mitsubishi, Nissan, BMW and Mazda.
• An Editor's Choice Award for Geomagic Qualify from Cadence, a leading publication for the computer-aided design (CAD) industry, and a top 10 software award from IEEE Computer Graphics & Applications, an international trade magazine for the computer graphics industry.

  Geomagic (www.geomagic.com) provides solutions that enable rapid manufacturing, mass customization and quality assurance. In addition to industry-leading products, the company offers technology and process consulting, custom software development for specific industries, systems integration, and specialized interfaces to Geomagic Studio 3D photography software. Manufacturers worldwide - including Toyota, Harley-Davidson, Fisher-Price, Align and many others - turn to Geomagic to provide the technology for customizing products, automating processes, and increasing throughput.

  Media contacts: Bob Cramblitt, Jill Aitoro Cramblitt & Company Email: cramco@cramco.com Phone: 919-481-4599