News from Plant-Design.Com

Spatial Inc. (AMEX-STY), a leading developer of 3D modeling technology and interoperability solutions, today announced that 3Dmodelserver.com(tm) (http://www.3Dmodelserver.com), the world's first web-based engineering ASP (Application Service Provider) dedicated to communicating 3D model data through the manufacturing enterprise and supply chain, is now in open beta testing. Users may sign up for the service directly at http://www.3Dmodelserver.com for this phase of testing at no charge. 3Dmodelserver.com is the world's first web-based service that enables the rapid flow of 3D model data through the manufacturing enterprise and its related supply chain. The service addresses the problem of interoperability among diverse manufacturing systems - a problem widely recognized as a major barrier in the drive for greater productivity and lower costs in manufacturing. 3Dmodelserver.com reduces the errors caused when 3D solid models are translated for use in heterogeneous manufacturing environments- a problem shared by manufacturers and their suppliers, who, until now, have had to manually reconstruct 3D models to force them to work in off-the-shelf and proprietary software systems. According to the Research Triangle Institute, Center of Economics Research, North Carolina, interoperability problems cost at least one billion dollars per year for the U.S. automotive industry alone. "This launch represents a major milestone in the search for true interoperability among engineering systems for millions of engineers," commented Bruce Morgan, President and CEO, Spatial Inc. "3Dmodelserver.com's fast, intuitive service will remove hours, perhaps days, of manual analysis and rework for engineers and designers throughout the manufacturing supply chain. This will reduce product design costs, eliminate manufacturing delays and allow products to be supplied faster, cheaper and better than ever before. The economy as a whole will be the beneficiary of 3Dmodelserver.com."

Engineers and designers are now able to apply for the open beta test of 3Dmodelserver.com. Customers need a standard web browser (recommended: Netscape 4.x or above, Internet Explorer V3. or above) and an Internet connection to access http://www.3Dmodelserver.com. Once in the site, simply click on the option to 'Register for an account,' complete the log-in information and follow the instructions to upload a model in either SAT or IGES format. 3Dmodelserver.com asks the customer to indicate his or her translation and healing preferences and then prompts the customer to submit a 3D model. The customer will be notified via email when the model has been successfully uploaded and the progress of each model can be tracked through a status page on the web site. When processing is complete, an email notification will be sent out and the customer can log into the site and download the model. On download of the file, the customer is provided with a comprehensive report of the repair activity so they can fully understand the processes used.

Dan Virga, Design Engineering Supervisor at Woodbridge Group, a major supplier of car seat and energy management foam for vehicles, and an early user of 3Dmodelserver.com, commented on the service, "We receive a couple of hundred models a month from our customers and interoperability of those models is a huge issue in our operation, but with 3Dmodelserver.com, 75% of the models we uploaded came back at least 95% healed via its secure model repair service. As a result, we are planning to totally change the way our group works - being able to focus less on manually reworking data and more on streamlining our whole process of rapid costing and manufacture for our clients."

Spatial estimates that 3Dmodelserver.com will cost the user 1/10 or less of the cost to manually fix 3D models by rebuilding the models in their current CAD system, the most common method used in the industry. While 3Dmodelserver.com's services are free of charge during the open beta, the site will support secure credit card transactions when the service goes live, as well as monthly billing for regular customers. 3Dmodelserver.com utilizes Secure Sockets Layer (SSL) technology to ensure the optimum level of safety for data, but also plans an enterprise version of 3Dmodelserver.com for companies requiring to keep data entirely in-house. This enterprise version will allow the 3Dmodelserver.com technology to reside on a firewall-protected intranet. The Internet version of 3Dmodelserver.com will be expanded before the end of the year to include support for STEP, CATIA, and Pro/ENGINEER models.

More information about being a participant in the 3Dmodelserver.com open beta test can be found at: http://www.3Dmodelserver.com where customers can also view a comprehensive online demonstration of the interface and service.

About Spatial Inc.

Spatial is the leading provider of revolutionary, internet-based interoperability services and 3D solid modeling software which set global standards for product engineers, designers, software developers, and manufacturing professionals.

Spatial's 3Dmodelserver.com provides Web-based translation and healing of 3D solid models, enabling rapid sharing of 3D engineering data across design and manufacturing firms, and their clientele, regardless of their installed CAD systems. Spatial's ACISr 3D modeling kernel is the de facto 3D solid modeling standard which dominates the CAD/CAM/CAE market worldwide. ACIS has been adopted by more than 500 licensees and is the foundation of over 200 applications used by over 1.4 million engineers and designers worldwide. Spatial's IntraVISION(tm) interoperability solutions provide intuitive viewing, markup, measurement, and conversion of all major 2D and 3D product data across project teams, engineering organizations, and with business partners. The combination of products and services developed by Spatial allow licensees and 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 entire organization.

The company is headquartered in Boulder, Colorado, USA, and has offices in California, Germany, Japan, and the United Kingdom. Spatial's stock is traded on the NASDAQ-AMEX exchange under the symbol "STY."

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. 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, 1998.

Spatial Inc. and SAT are trademarks. ACIS is a registered trademark of Spatial Technology Inc. IntraVISION and 3Dmodelserver.com are trademarks of Spatial Inc. All other products are trademarks of their respective owners.