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 Exerial^TM machines at a breakeven contribution margin, a $1.5 million charge for obsolete inventories associated with the completion of a design evaluation of the Exerial^TM 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.