The Distributed Virtual Environment (DVE) is expected as a promising communication technology in the future. And the productivity of DVE systems is an important subject for the progress of DVE. In this study, we proposed a new method for expanding DVE more consistently, and developed a prototype DVE system which we call the EX-DVE system. EX-DVE is a kind of DVE where users can easily add virtual objects into the existing DVE, that is, users can EXpand the DVE system. First, we designed the hybrid modeling method for DVE simulation. This method consists of (1) data set, which logically expresses various physical states of virtual objects, and (2) simulation procedure, which physically enables interaction between virtual objects. The data set is composed of hierarchical structure, and the interaction between virtual objects is simulated in the separated from the whole system, so that users can reuse the data of exsisting virtual objects without disturbing the system. Then, it was confirmed that the proposed hybrid modeling method enables users to add virtual objects consistently into DVE, and that users can experience. The basic tasks for machine assembly and disassembly are realized by using this system. By using the EX-DVE system. multiple users can not only communicate with each other by visual and audio information, but also independently expand the DVE.