Exhibit 99.1

Proto Labs Reports Record Revenue and Net Income for the First Quarter 2014

Quarterly Revenue Increases 23% Year over Year to $46.1 Million

Quarterly Net Income Increases 22% Year over Year to $10.1 Million

MAPLE PLAIN, Minn.—May 1, 2014-- Proto Labs, Inc. (NYSE: PRLB), a leading online and technology-enabled quick-turn manufacturer, today announced record financial results for the first quarter ended March 31, 2014.

Highlights include:

● Revenue for the first quarter of 2014 increased to a record $46.1 million, 23 percent above revenue of $37.3 million in the first quarter of 2013.

● The record quarterly revenue was achieved through an 18 percent increase in the number of product developers served combined with an increase of 4 percent in spending per product developer.

● Net income for the first quarter of 2014 increased to a record $10.1 million, or $0.39 per diluted share. Non-GAAP net income, excluding the after tax expense of stock compensation, was $10.8 million, or $0.41 per diluted share. See “Non-GAAP Financial Measure” below.

“Our story in the first quarter of 2014 was about execution on many fronts. We successfully prepared for the formal launches in metal injection molding and liquid silicone rubber, both of which were announced the first week of April. Our revenue growth was strong, especially considering all the weather slow-downs and closures our customers experienced in the eastern half of the country. And of course, we completed the acquisition of FineLine Prototyping which we proudly announced a few days ago,” said Vicki Holt, President and Chief Executive Officer of Proto Labs.

Additional highlights include:

● Gross margin was 63.0 percent of revenue in the first quarter of 2014 compared with 62.4 percent during the same quarter in 2013.

● During the first quarter of 2014, spending on research and development, including the Protoworks initiatives, totaled $3.5 million, or 7.5 percent of revenue. This compares to $2.6 million, or 7.0 percent of revenue, during the first quarter of 2013.

● Operating margin was 31.4 percent of revenue during the first quarter of 2014 compared to 30.5 percent in the first quarter of 2013.

● As measured on a year-to-date basis, cash generated from operations totaled $15.3 million and expenditures on capital equipment were $9.9 million. Total cash, cash equivalents and investments totaled $149.9 million as of March 31, 2014.

“As much as we accomplished this past quarter, we expect the next few quarters will bring even more success. We are confident that our new services, LSR and MIM, will continue to gain momentum through 2014 and into 2015 as product developers become aware of and have experience with these new offerings. The integration of FineLine and its additive manufacturing service will bring more choices to product developers. We believe we are building the most dynamic parts supplier in the world with capabilities to supply our customers’ parts demand from quick-turn prototyping through short-run volume production via a robust portfolio of manufacturing technologies in a wide variety of material selections,” concluded Holt.

Non-GAAP Financial Measure

The company has included non-GAAP net income, adjusted for stock-based compensation expense, in this press release to provide investors with additional information regarding the company’s financial results. The company has provided below a reconciliation of non-GAAP net income, adjusted for stock-based compensation expense, to net income, the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP net income, adjusted for stock-based compensation expense, is used by the company’s management and board of directors to understand and evaluate operating performance and trends and provides a useful measure for period-to-period comparisons of the company’s business. Accordingly, the company believes that non-GAAP net income, adjusted for stock-based compensation expense, provides useful information to investors and others in understanding and evaluating operating results in the same manner as our management and board of directors.

Conference Call

The company has scheduled a conference call to discuss its first quarter financial results today, May 1, 2014 at 8:30 a.m. ET. To access the call in the U.S. please dial 866-700-6067. Outside the U.S. please dial 617-213-8834. Use participant code 17168050. A simultaneous webcast of the call will also be available on the investor relations section of the company’s website at www.protolabs.com/investors. An audio replay will be available for 14 days following the call on the investor relations section of Proto Labs’ website.

About Proto Labs, Inc.
Proto Labs is a leading online and technology-enabled quick-turn manufacturer of custom parts for prototyping and short-run production. Proto Labs provides “Real Parts, Really Fast” to product developers worldwide. Proto Labs utilizes computer numerical control (CNC) machining, injection molding, and additive manufacturing (3D printing), to manufacture custom parts for our customers. For more information, visit protolabs.com.

Forward-Looking Statements
Statements contained in this press release regarding matters that are not historical or current facts are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Proto Labs to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are described in the “Risk Factors” section within reports filed with the SEC. Other unknown or unpredictable factors also could have material adverse effects on Proto Labs’ future results. The forward-looking statements included in this press release are made only as of the date hereof. Proto Labs cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Proto Labs expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances.

Contacts:

Investor Relations:

Jack Judd, 763-479-7408

jack.judd@protolabs.com

Media Relations:

Bill Dietrick, 763-479-7664

bill.dietrick@protolabs.com

Proto Labs, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

			March 31,		December 31,
			2014		2013
			(Unaudited)
Assets
Current assets
	Cash and cash equivalents		$	44,201	$	43,039
	Short-term marketable securities			34,360		36,339
	Accounts receivable, net			21,905		18,320
	Inventory			5,346		5,166
	Other current assets			4,862		6,931
		Total current assets		110,674		109,795
Property and equipment, net				63,963		56,101
Long-term marketable securities				71,315		64,023
Other long-term assets				249		256
		Total assets	$	246,201	$	230,175
Liabilities and shareholders' equity
Current liabilities
	Accounts payable		$	10,405	$	6,455
	Accrued compensation			4,779		6,196
	Accrued liabilities and other			1,304		808
	Income taxes payable			145		-
	Current portion of long-term debt obligations			208		204
		Total current liabilities		16,841		13,663
Long-term deferred tax liabilities				3,779		3,682
Long-term debt obligations				106		159
Other long-term liabilities				999		1,028
Shareholders' equity				224,476		211,643
Total liabilities and shareholders' equity			$	246,201	$	230,175

Proto Labs, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share amounts)

(Unaudited)

		Three Months Ended
		March 31,
		2014		2013
Revenue
	Protomold	$	32,694	$	26,880
	Firstcut		13,380		10,433
	Total revenue		46,074		37,313
Cost of revenue			17,050		14,034
Gross profit			29,024		23,279
Operating expenses
	Marketing and sales		6,417		5,263
	Research and development		3,456		2,628
	General and administrative		4,703		3,994
	Total operating expenses		14,576		11,885
Income from operations			14,448		11,394
Other income, net			103		3
Income before income taxes			14,551		11,397
Provision for income taxes			4,449		3,110
Net income		$	10,102	$	8,287
Net income per share:
	Basic	$	0.40	$	0.33
	Diluted	$	0.39	$	0.32
Shares used to compute net income per share:
	Basic		25,573,851		25,014,907
	Diluted		26,091,069		25,645,744

Proto Labs, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

			Three Months Ended
			March 31,
			2014			2013
Operating activities
	Net income		$	10,102		$	8,287
	Adjustments to reconcile net income to net cash provided by operating activities:
		Depreciation and amortization		2,106			1,734
		Stock-based compensation expense		998			865
		Deferred taxes		107			148
		Excess tax benefit from stock-based compensation		(897	)		(4,067	)
		Amortization of held-to-maturity securities		482			304
		Changes in operating assets and liabilities		2,368			3,874
	Net cash provided by operating activities			15,266			11,145
Investing activities
	Purchases of property and equipment			(9,892	)		(2,548	)
	Purchases of marketable securities			(32,385	)		(41,088	)
	Proceeds from maturities of marketable securities			26,590			18,313
	Net cash used in investing activities			(15,687	)		(25,323	)
Financing activities
	Payments on debt			(50	)		(92	)
	Proceeds from exercises of stock options and other			665			1,619
	Excess tax benefit from stock-based compensation			897			4,067
	Net cash provided by financing activities			1,512			5,594
Effect of exchange rate changes on cash and cash equivalents				71			(246	)
Net increase (decrease) in cash and cash equivalents				1,162			(8,830	)
Cash and cash equivalents, beginning of period				43,039			36,759
Cash and cash equivalents, end of period			$	44,201		$	27,929

Proto Labs, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measure

(In thousands, except share and per share amounts)

(Unaudited)

		Three Months Ended
		March 31, 2014
Non-GAAP net income, adjusted for stock-based compensation expense:
	GAAP net income	$	10,102
	Add back: Stock-based compensation expense
	Cost of revenue		82
	Marketing and sales		195
	Research and development		215
	General and administrative		506
	Total stock-based compensation expense		998
	Income tax benefits on stock-based compensation		(312	)
	Non-GAAP net income	$	10,788
Non-GAAP net income per share:
	Basic	$	0.42
	Diluted	$	0.41
Shares used to compute non-GAAP net income per share:
	Basic		25,573,851
	Diluted		26,091,069

Proto Labs, Inc.

Revenue by Geography - Based on Shipping Location

(In thousands)

(Unaudited)

		Three Months Ended
		March 31,
		2014		2013
Revenues
	Domestic
	United States	$	33,022	$	28,148
	International
	Europe		9,205		6,465
	Japan		1,885		1,349
	United States		1,962		1,351
	Total international		13,052		9,165
	Total revenue	$	46,074	$	37,313

Proto Labs, Inc.

Customer Information

(In thousands, except customer amounts)

(Unaudited)

	Three Months Ended March 31,
	2014				2013
	Number of Customers		Revenue ($)		Number of Customers		Revenue ($)
New customers		559	$	3,196		710	$	3,078
Existing customers		4,325		42,878		3,528		34,235
Total		4,884	$	46,074		4,238	$	37,313

Proto Labs, Inc.

Product Developer Information

(Unaudited)

	Three Months Ended March 31,
	2014		2013
Unique product developers served		7,669		6,488