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ACIS 3D Toolkit Maintains Dominance as the 3D Modeling Standard; Spatial's ACIS Community Climbs to 575
BOULDER, Colo., July 28, 2000--Spatial Inc. (AMEX:STY), the world's leading developer of Web-hosted engineering application services, interoperability solutions and open, component 3D modeling technology, today announced reaching a milestone of 575 ACIS(R) Licensees.

Spatial now has almost three times the number of licensees as its nearest competitor--a testament to the strong demand for ACIS 3D modeling and component products.

ACIS(R) 3D Toolkit (ACIS), Spatial's flagship product, is universally recognized as the de facto 3D modeling kernel for building MCAD/CAM/CAE and AEC software applications. ACIS is similar in concept to the Intel processor in your PC. This technology provides the underlying sophisticated mathematical routines that enable the most popular applications to build 3D Models.

For over 13 years, ACIS has maintained its market dominance by having the greatest market penetration of any 3D modeling kernel. It is the underlying 3D technology that powers 221 end-user applications and is used by over 1.8 million end users. These end users--designers, engineers, manufacturers, architects--use ACIS-enabled applications to create accurate 3D solid models, a critical function in the process of turning product ideas into reality.

"Five-hundred-and-seventy-five ACIS licensees affirms the extensive impact ACIS enjoys in today's design engineering marketplace, and Spatial's continued drive in delivering the quality geometric modeling for today's sophisticated design engineering applications," said Dr. Ken Versprille, program manager, design creation and validation, D. H. Brown Associates, Inc.

Recent licensees include Cornerstone Technology, DP Technology, Electric Boat, Futaba, Mechanical Dynamics, and Orbit Technology, Pointwise, REMCOM, Sensable Technology, Teksoft, Toyota Caelum, Toyota Motor Corporation, UNOCAD srl, and several University and research licensees. Flagship ACIS licensees include Alias|Wavefront, Alibre, Ashlar, Autodesk, and CADKEY.

"Spatial's 575th ACIS license is indicative of the broad acceptance the company is finding for its component software," said David Weisberg, publisher, Engineering Automation Report and A-E-C Newsletter. "I believe that the decision to license a geometric kernel depends upon more than just the functionality and quality of the basic software. Application developers want and need to know that the vendor of modeling software can also provide other necessary components and can do so with business terms that are mutually beneficial. Spatial has done an outstanding job in recent years to meet these needs."

"Reaching the milestone of 575 ACIS 3D Toolkit licensees confirms ACIS as the industry standard 3D modeling kernel worldwide," said Charlene Hoffman, vice president of marketing and strategic relationships, Spatial Inc. "With the recent Dassault Systemes acquisition announcement and our joint focus on product quality, we're confident our aggressive R&D investments will continue to serve the MCAD/CAM/CAE community and strengthen our unsurpassed technology leadership position."

About Spatial Inc.

Spatial is the world's leading provider of web-based services, e-frastructure and advanced engineering technology solutions which streamline the digital manufacturing supply chain and set global standards for product engineers, designers, software developers and manufacturing professionals. Spatial is headquartered in Boulder, Colorado, USA, and has offices in California, France, Germany, Japan and the United Kingdom. For more information, visit Spatial's Web site at http://www.spatial.com or call 303/544-2900.

Spatial's Component Business Division provides the world's most widely used 3D solid modeling, viewing and interoperability component products that enhance software functionality and shorten product time-to-market. The ACIS(R) 3D modeling kernel is the de facto 3D solid modeling standard, which dominates the CAD/CAM/CAE market worldwide. Spatial's IntraVISION(R) viewing and OEM product family solutions provide intuitive viewing, markup, measurement and conversion of all major 2D and 3D product design data across project teams, engineering organizations and with business partners. The combination of products and services developed by Spatial allows licensees and end users to capitalize on the improved integrity, advanced interoperability and rapid distribution of their design data, dramatically improving time-to-market and product development cycles across the digital manufacturing supply chain.

3Dshare-Enterprise provides Intranet-based access to robust 3D CAD file translation and repair for the engineering and manufacturing enterprise. Created directly from the web-based 3Dshare.com application service, http://www.3Dshare.com, this enterprise product gives corporate access to streamline 3D CAD data interoperability. Spatial's PlanetCAD division develops and delivers web-hosted application services, e-commerce sites and portals that are the premier online destinations for manufacturing and designing. For more information on PlanetCAD, visit http://www.planetcad.com.

Statements made in this news release that are not historical facts may be forward-looking statements. Actual results may differ materially from those projected in any forward-looking statement, and any projections related to 3Dshare.com and PlanetCAD.com may be significantly different than those predicted by the Company. There are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information. A description of risks and uncertainties attendant to Spatial Technology Inc. and its industry, and other factors which could affect the Company's financial results, are included in the Company's Securities and Exchange Commission filings, including but not limited to, the Company's annual report on Form 10-KSB for the year ended December 31, 1999.

Spatial Technology Inc., ACIS 3D Toolkit, 3Dshare, and PlanetCAD are trademarks. SAT, ACIS and IntraVISION are registered trademarks of Spatial Technology Inc. All other products are trademarks of their respective owners.

CONTACT: Spatial Inc. Contact:
Rachael Dalton-Taggart, 303/544-2986
rachael.taggart@spatial.com
or
Spatial Inc. Investor Relations Contact:
Pfeiffer Public Relations
Geoff High, 303/393-7044
geoff@pfeifferpr.com
or
Spatial Inc. UK Public Relations Contact:
Practical PR
David Allen, 44 (0) 171-328-1991
practicalpr@cix.co.uk

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