The exporter will apply the effects of Blender mesh modifiers to your exported meshes automatically.
Modifiers that affect the deformation of a mesh in real-time (other than the armature modifier) will be applied only once in the rest position. It is not currently possible to generate a DTS file in which a modifier, such as the lattice modifier, continuously deforms a mesh on each frame (morph animations are not supported). Only the armature modifier with the vertex groups option enabled is currently supported for real-time mesh deformation in the DTS file format.
More information on Blender's modifier system can be found here: http://wiki.blender.org/index.php/Manual/Modifiers_%26_Deformation
Important Note:
This feature will not work on skinned meshes due to a limitation in Blender's Python API! The exporter can't get the vertex weights for the "modifiers applied" version of the mesh, which is taken from the raw mesh data (rendering data). Modifiers can, however, be applied by hand on skinned meshes. "Reverse Engineering" of the original vertex weights for skinned meshes with modifiers during export in an accurate, fast, and robust way would be nearly impossible.
See Also: