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, the following factors, among others, could cause results to differ materially from forward-looking statements or historical performance: the Company’s ability to enhance its current three-dimensional (“3D”) printing machines and technology and develop new 3D printing machines; its ability to qualify more industrial materials in which it can print; timing and length of sales of 3D printing machines; demand for ExOne products; the Company’s ability to achieve cost savings through consolidation or exiting of certain North American operations; the impact of increases in operating expenses and expenses relating to proposed investments and alliances; the availability of skilled personnel; the impact of market conditions and other factors on the carrying value of long-lived assets; the Company’s competitive environment and its competitive position; the Company’s ability to continue as a going concern; individual customer contractual requirements; the impact of customer specific terms in machine sale agreements on the period in which the Company recognizes revenue; the impact of loss of key management; risks related to global operations including effects of foreign currency and risks related to the situation in the Ukraine and the United Kingdom’s referendum to withdraw from the European Union; demand for aerospace, automotive, heavy equipment, energy/oil/gas and other industrial products; the Company’s plans regarding increased international operations in additional international locations; the scope, nature or impact of alliances and strategic investments and the Company’s ability to integrate strategic investments; sufficiency of funds for required capital expenditures, working capital, and debt service; the adequacy of sources of liquidity; 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 our manufacturing facilities, production service centers or ExOne adoption centers; the adequacy of the Company’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; and material weaknesses in the Company’s internal control over financial reporting.

These and other important factors, including those discussed in the Company’s Annual Report on Form 10-K, may cause its actual results of operations to differ materially from any future results of operations expressed or implied by the forward-looking statements contained herein. 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.

FINANCIAL TABLES FOLLOW.

The ExOne Company Statement of Consolidated Operations (in thousands, except per-share amounts) (Unaudited)
				Quarter Ended June 30,								% Change			Six Months Ended June 30,								% Change
				2017				2016							2017				2016
Revenue				$	10,799			$	11,755			(8	%)		$	21,668			$	20,169			7	%
Cost of sales					8,773				8,249			6	%			18,039				14,787			22	%
Gross profit					2,026				3,506			(42	%)			3,629				5,382			(33	%)
Gross margin					18.8	%			29.8	%						16.7	%			26.7	%
Research and development					2,349				1,946			21	%			4,348				3,839			13	%
Selling, general and administrative					6,013				4,663			29	%			12,276				9,988			23	%
					8,362				6,609			27	%			16,624				13,827			20	%
Operating loss					(6,336	)			(3,103	)		(104	%)			(12,995	)			(8,445	)		(54	%)
Interest expense					23				22			5	%			45				254			(82	%)
Other expense (income) – net					35				(205	)		NM				145				(298	)		NM
					58				(183	)		NM				190				(44	)		NM
Loss before income taxes					(6,394	)			(2,920	)		(119	%)			(13,185	)			(8,401	)		(57	%)
Provision for income taxes					9				22			(59	%)			9				18			(50	%)
Net loss				$	(6,403	)		$	(2,942	)		(118	%)		$	(13,194	)		$	(8,419	)		(57	%)
Net loss per common share:
Basic				$	(0.40	)		$	(0.18	)		(122	%)		$	(0.82	)		$	(0.53	)		(55	%)
Diluted				$	(0.40	)		$	(0.18	)		(122	%)		$	(0.82	)		$	(0.53	)		(55	%)
Weighted average shares outstanding (basic and diluted)					16,046				15,994							16,037				15,870
NM: Not Meaningful

The ExOne Company Consolidated Balance Sheet (in thousands, except per-share and share amounts) (Unaudited)
				June 30, 2017				December 31, 2016
Assets
Current assets:
Cash and cash equivalents				$	24,051			$	27,825
Restricted cash					1,112				330
Accounts receivable - net of allowance of $1,687 (2017) and $1,566 (2016)					6,566				6,447
Inventories - net					17,022				15,838
Prepaid expenses and other current assets					2,059				1,159
Total current assets					50,810				51,599
Property and equipment - net					49,011				51,134
Intangible assets - net					236				668
Other noncurrent assets					304				777
Total assets				$	100,361			$	104,178
Liabilities
Current liabilities:
Current portion of long-term debt				$	133			$	132
Current portion of capital leases					41				72
Accounts payable					4,365				2,036
Accrued expenses and other current liabilities					5,120				5,124
Deferred revenue and customer prepayments					10,539				7,371
Total current liabilities					20,198				14,735
Long-term debt - net of current portion					1,578				1,644
Capital leases - net of current portion					44				10
Other noncurrent liabilities					9				9
Total liabilities					21,829				16,398
Contingencies and commitments
Stockholders' equity
Common stock, $0.01 par value, 200,000,000 shares authorized, 16,045,949 (2017)
and 16,017,115 (2016) shares issued and outstanding					160				160
Additional paid-in capital					171,951				171,116
Accumulated deficit					(82,363	)			(68,761	)
Accumulated other comprehensive loss					(11,216	)			(14,735	)
Total stockholders' equity					78,532				87,780
Total liabilities and stockholders' equity				$	100,361			$	104,178

The ExOne Company Statement of Consolidated Cash Flows (in thousands) (Unaudited)
				Six Months Ended
				June 30,
				2017				2016
Operating activities
Net loss				$	(13,194	)		$	(8,419	)
Adjustments to reconcile net loss to net cash used for operations:
Depreciation and amortization					3,589				2,862
Equity-based compensation					835				554
Amortization of debt issuance costs					3				207
Deferred income taxes					-				(29	)
Provision (recoveries) for bad debts - net					132				(271	)
Provision (recoveries) for slow-moving, obsolete and lower of cost or market inventories - net					1,835				(403	)
(Gain) loss from disposal of property and equipment - net					(314	)			198
Changes in assets and liabilities, excluding effects of foreign currency translation adjustments:
Decrease in accounts receivable					69				4,652
Increase in inventories					(3,358	)			(545	)
(Increase) decrease in prepaid expenses and other assets					(770	)			820
Increase in accounts payable					2,111				208
Decrease in accrued expenses and other liabilities					(252	)			(1,551	)
Increase in deferred revenue and customer prepayments					2,390				1,550
Net cash used for operating activities					(6,924	)			(167	)
Investing activities
Capital expenditures					(392	)			(331	)
Proceeds from sale of property and equipment					3,677				44
Net cash provided by (used) for investing activities					3,285				(287	)
Financing activities
Net proceeds from issuance of common stock - registered direct offering to a related party					-				12,447
Net proceeds from issuance of common stock - at the market offerings					-				595
Payments on long-term debt					(68	)			(68	)
Payments on capital leases					(45	)			(41	)
Net cash (used for) provided by financing activities					(113	)			12,933
Effect of exchange rate changes on cash, cash equivalents, and restricted cash					760				63
Net change in cash, cash equivalents, and restricted cash					(2,992	)			12,542
Cash, cash equivalents, and restricted cash at beginning of period					28,155				19,672
Cash, cash equivalents, and restricted cash at end of period				$	25,163			$	32,214
Supplemental disclosure of noncash investing and financing activities
Transfer of internally developed 3D printing machines from inventories to property and
equipment for internal use or leasing activities				$	1,917			$	1,997
Transfer of internally developed 3D printing machines from property and equipment to
inventories for sale				$	395			$	682
Property and equipment included in accounts payable				$	100			$	20
Property and equipment acquired through financing arrangements				$	48			$	-

The ExOne Company Additional Information (Unaudited)
Machine Sales by Type
				Quarter Ended June 30,					Six Months Ended June 30,
				2017		2016			2017		2016
S-Max+™				-		-			-		1
S-Max®				2		1			6		1
S-Print®				-		2			-		2
S-15™				-		1			-		1
M-Flex®				3		2			4		2
Innovent®				3		3			3		3
				8		9			13		10

The ExOne Company Adjusted EBITDA Reconciliation (in millions) (Unaudited)
					Quarter Ended June 30,								Six Months Ended June 30,
					2017				2016				2017				2016
Net loss					$	(6.4	)		$	(2.9	)		$	(13.2	)		$	(8.4	)
Interest expense						0.0				0.0				0.1				0.2
Provision for income taxes						0.0				0.0				0.0				0.0
Depreciation and amortization						1.3				1.5				3.6				2.9
Equity-based compensation						0.3				0.2				0.8				0.6
Other expense (income) - net						0.0				(0.2	)			0.1				(0.3	)
Adjusted EBITDA					$	(4.8	)		$	(1.4	)		$	(8.6	)		$	(5.0	)

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