The ExOne Company Reports 2017 Fourth Quarter and Full Year Results

• 2017 revenue up 21% to $57.7 million, includes record-setting 41
  machines sold
• Machine revenue up 43% in 2017 to $30 million; non-machine
  revenue up 4% to
  $27.7 million
• Backlog of $21.3 million at year end
• Expect 2018 revenue growth in excess of 20%, while accelerating
  technology investment

NORTH HUNTINGDON, Pa.–(BUSINESS WIRE)–The
ExOne Company (NASDAQ: XONE) (“ExOne” or “the Company”), a global
provider of three-dimensional (“3D”) printing machines and 3D printed
and other products, materials and services to industrial customers,
reported financial results today for the fourth quarter and year ended
December 31, 2017.

“We are confident that our team’s 2017 accomplishments have ExOne on the
right track. With 21% growth, we achieved a record revenue level at
nearly $58 million, while continuing to accelerate our technology
development,” stated Jim McCarley, ExOne’s Chief Executive Officer.

“Operationally, we made significant advancements on many fronts:

• Our customers operating Exerial™ machines are creating molds and cores
  in production environments, successfully enabling the 3D printing of
  unique component designs on their factory floors.
• We now have customer installations operating with cold hardening
  phenolic (CHP) binder on three continents and expect accelerated
  growth in 2018.
• Along with SGL Group, we recently announced the availability of
  CARBOPRINT™ 3D printed products, demonstrating the diversity of
  materials that can be printed with our binder jetting technology.
• Advancements made with our fine powder recoating technology are
  enabling the development of our large format fine powder machine,
  expected to be launched in 2018.
• We are expanding our material offerings in the tooling, filtration and
  energy markets.

We believe that these investments, along with our technology development
roadmap for 2018, will drive continued double-digit revenue growth and
accelerated adoption of our binder jetting technology in 2018 and
beyond,” Mr. McCarley noted.

Fourth Quarter and Full Year Revenue – Machine Revenue Growth
Validates Binder Jetting

Consolidated revenue for the 2017 fourth quarter grew 38% over the
prior-year fourth quarter. Machine revenue was up 72% to $12.9 million,
driven by 16 machines sold in the 2017 fourth quarter, compared with 12
in the 2016 fourth quarter. Non-machine revenue was up 2% to $7.3
million in the fourth quarter of 2017, compared with the prior year.

For the year, consolidated revenue grew 21% to $57.7 million compared
with 2016. Excluding revenue attributable to product lines that the
Company has exited, the comparable revenue grew 25%. Machine revenue was
up 43%, driven by eight more machines sold, for a total of 41 in 2017.
Non-machine revenue was up 4% in 2017. Excluding revenue attributable to
product lines that the Company has exited, the comparable non-machine
revenue grew by 10%.

Given the long sales cycle and significance of a machine’s average
selling price relative to total revenue, fluctuations in machine-sale
revenue vary from quarter to quarter. ExOne does not believe that such
quarter-to-quarter fluctuations are necessarily indicative of larger
trends.

Fourth Quarter Operations – Impacted by Accelerated Investments

Gross profit of $6.7 million benefited from revenue growth and favorable
product mix, partially offset by lower profitability relating to new
products and technology releases which unfavorably impacted the gross
margin in the 2017 fourth quarter.

R&D expense of $2.7 million for the quarter was up $0.6 million compared
with the 2016 fourth quarter, attributable to internal talent additions,
external resources to accelerate technology, and IP development.

SG&A expense was $5.8 million compared with $5.5 million in the
prior-year quarter. The increase included higher commissions, as well as
internal talent and external resources to advance technology adoption.

The 2017 fourth quarter net loss was $1.9 million, or $0.12 per share,
compared with a $2.6 million net loss, or $0.16 per share, in the fourth
quarter of 2016. The improved net loss was principally due to higher
revenue, partially offset by lower profitability relating to new
products and technology releases as well as accelerated technology
investments.

Adjusted earnings before interest, taxes, depreciation and amortization
(“Adjusted EBITDA”), a non-GAAP measure, was a $0.1 million loss in the
2017 fourth quarter, compared with a $0.7 million loss in last year’s
fourth quarter. ExOne management believes that, when used in conjunction
with other measures prepared in accordance with accounting principles
generally accepted in the United States (“GAAP”), Adjusted EBITDA
assists in the understanding of its financial results. See the
attached tables for important disclosures regarding the Company’s use of
Adjusted EBITDA as well as a reconciliation of net loss (most directly
comparable GAAP measure) to Adjusted EBITDA for the quarters ended
December 31, 2017 and 2016.

2017 Review – Revenue Growth Offset by Costs for Operational
Advancement

Gross profit was $14.4 million, resulting in a 24.9% gross margin for
2017, compared with 29.6% in 2016. Despite higher revenue and favorable
product mix, the 2017 results were impacted by lower profitability
relating to new products and technology releases previously noted, as
well as several other activities as described in prior quarters. These
included a $2.8 million sale of four ExerialTM machines at a
breakeven contribution margin, a $1.5 million charge for obsolete
inventories associated with the completion of a design evaluation of the
ExerialTM platform, approximately $0.7 million of costs
associated with the Company’s consolidation and exit from its North Las
Vegas PSC and non-core specialty machining operations in Michigan,
partially offset by approximately $0.3 million of net gains on the
disposal of the impacted property and equipment. The 2016 period
benefited by $0.3 million from the net impact of a sale associated with
an exited product line offset by losses on disposals of property and
equipment.

R&D expense was $9.9 million in 2017 compared with $7.8 million in 2016,
attributable to technology investments in IP and know-how for our coarse
and fine powder machine capabilities, broadening binder and material
combinations, and printer process development.

SG&A expense for 2017 was $24.2 million, up $3.4 million compared with
2016, with most of the increase pertaining to prior quarters. It
included investments in internal talent and external resources to
advance technology adoption, as well as unusual employee related costs
and a charge for impairment of intangible assets associated with an
exited product line.

The net loss for 2017 was $20.0 million, or $1.25 per share,
compared with $14.6 million, or $0.92 per share in 2016.

Adjusted EBITDA was a $10.9 million loss for 2017, compared with a $7.3
million loss for 2016. ExOne management believes that, when used in
conjunction with other measures prepared in accordance with GAAP,
Adjusted EBITDA, a non-GAAP measure, assists in the understanding of its
financial results. See the attached tables for important disclosures
regarding the Company’s use of Adjusted EBITDA as well as a
reconciliation of net loss to Adjusted EBITDA for the years ended
December 31, 2017 and 2016.

Capitalization – Disciplined Cash Management

Cash, cash equivalents and restricted cash as of December 31, 2017 were
$22.2 million, compared with $28.2 million at December 31, 2016. Cash
used for operating activities in 2017 and 2016 was $9.7 million and $2.7
million, respectively. The increase reflected a higher net loss,
partially offset by working capital management while achieving
significant revenue growth. Cash capital expenditures were $1.0 million
for 2017, compared with $1.3 million for 2016. In addition, in 2017, the
Company realized $3.7 million of cash proceeds from the sale of property
and equipment, including facility exits.

In 2018, the Company expects cash capital expenditures of $1 to $1.5
million.

Outlook – Introducing 2018 Revenue Growth and Additional R&D
Expectations

Mr. McCarley concluded, “Our outlook for 2018 remains positive. We
believe that the rate of growth sustained in 2017 can be replicated in
2018, when we once again expect revenue growth in excess of 20%.
However, to accelerate growth beyond 2018 we need to accelerate our
investments in technology development. We anticipate an additional $6
million to $8 million of R&D expense in 2018, to advance our technology
roadmap. The marketplace for our products and services continues to grow
in size as does demand for greater equipment and process capability.
Through continued investment in our people and our technology, ExOne is
well positioned to meet this demand and remain the leader in binder
jetting technology for industrial applications.”

Webcast and Conference Call

ExOne will host a conference call and live webcast on Thursday, March 15
at 4:45 p.m. Eastern Time. During the conference call and webcast,
management will review the financial and operating results for the 2017
fourth quarter and full year, along with ExOne’s corporate strategies
and outlook. A question-and-answer session will follow. The
teleconference can be accessed by calling (201) 689-8470. The webcast
can be monitored on the Company’s website at www.investor.exone.com/.

A telephonic replay of the conference call will be available from 7:45
p.m. ET on the day of the teleconference through Thursday, March 22,
2018. To listen to a replay of the call, dial

(412) 317-6671 and enter the conference ID number 13676376, or access
the webcast replay via the Company’s website, where a transcript will
also be posted once available.

About ExOne

ExOne is a global provider of 3D printing machines and 3D printed and
other products, materials and services to industrial customers. ExOne's
business primarily consists of manufacturing and selling 3D printing
machines and printing products to specification for its customers using
its installed base of 3D printing machines. ExOne’s machines serve
direct and indirect applications. Direct printing produces a component;
indirect printing makes a tool to produce a component. ExOne offers
pre-production collaboration and print products for customers through
its network of ExOne Adoption Centers (EACs) and Production Service
Centers (PSCs). ExOne also supplies the associated materials, including
consumables and replacement parts, and other services, including
training and technical support that is necessary for purchasers of its
3D printing machines to print products. The Company believes that its
ability to print in a variety of industrial materials, as well as its
industry-leading volumetric output (as measured by build box size and
printing speed) uniquely position ExOne to serve the needs of industrial
customers.

Safe Harbor Regarding Forward Looking Statements

This news release may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act with respect to
the Company’s future financial or business performance, strategies, or
expectations. Forward-looking statements typically are identified by
words or phrases such as “trend,” “potential,” “opportunity,”
“pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,”
“intention,” “estimate,” “position,” “assume,” “outlook,” “continue,”
“remain,” “maintain,” “sustain,” “seek,” “achieve,” as well as similar
expressions, or future or conditional verbs such as “will,” “would,”
“should,” “could” and “may.”

The Company cautions that forward-looking statements are subject to
numerous assumptions, risks and uncertainties, which change over time.
Forward-looking statements speak only as of the date they are made and
the Company assumes no duty to and does not undertake to update
forward-looking statements. Actual results could differ materially from
those anticipated in forward-looking statements and future results could
differ materially from historical performance.

In addition to risk factors previously disclosed in the Company’s
reports and those identified elsewhere in its Annual Report on Form
10-K, the following factors, among others, could cause results to differ
materially from forward-looking statements or historical performance:
the Company’s ability to generate operating profits; fluctuations in the
Company’s revenues and operating results; the Company’s competitive
environment and its competitive position; ExOne’s ability to enhance its
current three-dimensional (“3D”) printing machines and technology
and develop new 3D printing machines; the Company’s ability to
qualify more industrial materials in which it can print; demand for
ExOne’s products; the availability of skilled personnel; the impact
of loss of key management; the impact of market conditions and other
factors on the carrying value of long-lived assets; the Company’s
ability to continue as a going concern; the impact of customer specific
terms in machine sale agreements on the period in which the Company
recognizes revenue; risks related to global operations including effects
of foreign currency; the adequacy of sources of liquidity; the
scope, sufficiency of funds for required capital expenditures, working
capital, and debt service; dependency on certain critical suppliers;
nature or impact of alliances and strategic investments; reliance on
critical information technology (“IT”) systems; the effect of
litigation, contingencies and warranty claims; liabilities under
laws and regulations protecting the environment; the impact of
governmental laws and regulations; operating hazards, war, terrorism and
cancellation or unavailability of insurance coverage; the impact of
disruption of the Company’s manufacturing facilities, Production Service
Centers (“PSCs”) or ExOne Adoption Centers (“EACs”); the adequacy of
ExOne’s protection of its intellectual property; expectations regarding
demand for the Company’s industrial products, operating revenues,
operating and maintenance expenses, insurance expenses and deductibles,
interest expenses, debt levels, and other matters with regard to outlook.

These and other important factors, including those discussed in the
Company’s Annual Report on Form 10-K, may cause the Company’s actual
results of operations to differ materially from any future results of
operations expressed or implied by the forward-looking statements
contained therein. Before making a decision to purchase ExOne common
stock, you should carefully consider all of the factors identified in
its Annual Report on Form 10-K that could cause actual results to differ
from these forward-looking statements.

NM: Not Meaningful

ExOne defines Adjusted EBITDA (earnings before interest, taxes,
depreciation and amortization) as net loss (as calculated under
accounting principles generally accepted in the United States (“GAAP”))
plus interest expense, provision for income taxes, depreciation and
amortization, equity-based compensation, and other expense (income) –
net. Use of Adjusted EBITDA, which is a non-GAAP financial measure, as
defined under the rules of the U.S. Securities and Exchange Commission,
is intended as a supplemental measure of ExOne’s performance that is not
required by, or presented in accordance with, GAAP. Adjusted EBITDA
should not be considered as an alternative to net loss or any other
performance measure derived in accordance with GAAP. The Company’s
presentation of Adjusted EBITDA should not be construed to imply that
its future results will be unaffected by unusual or non-recurring items.

The Company believes Adjusted EBITDA is meaningful to its investors to
enhance their understanding of ExOne’s financial results. Although
Adjusted EBITDA is not necessarily a measure of the Company’s ability to
fund its cash needs, the Company understands that it is frequently used
by securities analysts, investors and other interested parties as a
measure of financial performance and to compare ExOne’s performance with
the performance of other companies that report Adjusted EBITDA. ExOne’s
calculation of Adjusted EBITDA may not be comparable to similarly titled
measures reported by other companies.

Contacts

The ExOne Company
Brian Smith, 724-765-1350
Chief Financial
Officer
brian.smith@exone.com
or
Kei
Advisors LLC
Deborah K. Pawlowski / Karen L. Howard
716-843-3908
/ 716-843-3942
dpawlowski@keiadvisors.com
/ khoward@keiadvisors.com