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THE PANDA PROJECT INTRODUCES ITS ROCK CITY(tm) COMPUTERS-
A STYLISH ALTERNATIVE TO CONVENTIONAL PCs FOR UNDER $1,000

-New line of desktop computers to serve as platform for Panda's advanced semiconductor and interconnect technologies-

BOCA RATON, FLA. - APRIL 6, 1998 - The Panda Project, Inc. (Nasdaq:PNDA) today introduced Rock City, a new desktop computer combining a futuristic aluminum cube design with high performance and low price. The Rock City ST-100 (base price $895) and the Rock City ST-200 (base price $995), initial shipments of which are expected later this month, are the first in a line of innovative computer systems. Future Rock City models are also planned to serve as a platform for Panda's advanced semiconductor packaging and interconnect technologies.

The Rock City ST-200 was selected as a BYTE Magazine Best of Show "Must See" product at the CeBit '98 electronics trade show last month in Hannover, Germany.

The Rock City chassis is a 10.5-inch cube on a distinctive "on point" mounting system that gives the illusion of the unit hovering above the desk. The design results in a "footprint" that is 60 percent smaller than conventional systems. The chassis is made from aircraft-grade aluminum plate, anodized in colors such as cobalt blue or black mamba and etched with an interconnected lightning motif.

"The Rock City is Panda's vision of a high-performance, low-price computer. It is designed to be a lifestyle appliance - an artistic alternative to conventional systems for technology enthusiasts of all ages. While the look is truly unique, it also offers a full range of drive bays, robust power supply, and substantial expansion capabilities," said Stanford W. Crane, Jr., President and CEO of The Panda Project.

The Rock City ST-100 features an Intel(r) 200MHz Pentium(r) Processor with MMX(tm) Technology or x-86 compatible processor, at a base price of $895. The Rock City ST-100 boasts seven expansion slots (4 PCI, 3 ISA) and a 235-watt power supply.

ADD ONE

Even the entry level Rock City ST-100 comes standard with two external and three internal expansion drive bays; 256K cache; 66 MHz bus speed; 3-D sound card; stereo speakers; 32MB SDRAM (256MB max.); 2GB hard drive; 3.5 floppy drive; 32x IDE CD-ROM drive; 56K modem; Windows(r) 95; 2MB PCI SVGA video card; and Eurostyle wireless infrared keyboard with integral pointing device.

The next step up, the Rock City ST-200, features an Intel(r) 200MHz Pentium(r) Processor with MMX(tm) Technology or x86-compatible processor with AGP and 100MHz bus capability, at a base price of $995. The 233MHz version is available for an additional $65. Rock City systems featuring the Intel(r) Pentium(r) II processor are expected to be available later this quarter.

The Rock City ST-200 boasts six expansion slots (4 PCI, 2 ISA (shared), 1 AGP) and a 235-watt power supply. It comes standard with two external and three internal expansion drive bays; 512K cache; 3-D sound card; stereo speakers; 32MB SDRAM (384MB max.); 3GB hard drive; 3.5 floppy drive; 32x IDE CD-ROM drive; 56K modem; Windows(r) 95; 2MB PCI SVGA video card; and Eurostyle wireless infrared keyboard with integral pointing device.

The Rock City product line is, most importantly, a platform for Panda to use in the implementation of its advanced VSPA(tm) semiconductor packaging and Compass interconnect technologies. Within the next three months, Panda expects to introduce advanced Alpha-based models and upgradeable models of Rock City that incorporate VSPA and Compass technologies to extract additional performance at a very low price point in a small form factor. Panda also plans to use these processor, memory, and graphics solutions to assist other systems companies who want access to these single and multi-chip modules for performance gains.

Background on VSPA and Compass Technologies

Future Rock City models are planned to implement Panda's patented VSPA semiconductor packaging technology. VSPA, with its electrical, thermal, and mechanical superiority, is expected to allow processors on future Rock City computers to run faster than they can on competing systems. VSPA packages take up a much smaller space on the circuit board, while moving greater amounts of data through the computer's components.

The patented Compass technology is the world's densest interconnect. The Compass connector reduces the size yet increases the "throughput" of the electronic interconnects between circuit boards. Future Rock City models implementing Compass technology will enable users to upgrade to more powerful processor cards and option cards in the future - improving the performance of a wide range of applications.

Check out the Rock City web site for more information.

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