large increase in revenues for the first quarter of 2000 and forecast continuing growth for the rest of the year.

Total revenues for the quarter were just over $15 million, up by 84 percent from the $8.2 million reported in the first quarter of 1999. The company reported net income of $141,000, or a penny a share, fully diluted, compared to a net loss of $2.2 million, or $0.12 per share, last year.

"The first quarter of 2000 marks our sixth sequential quarter of revenue growth and continued profitability,'' stated Osman Kent, president and chief executive officer of 3Dlabs.

On April 10, 2000, the company announced it had signed a definitive agreement to acquire the assets of the Intense3D operations of Intergraph Corporation in an all-stock transaction. The acquisition is expected to be accretive for 3Dlabs on an earnings before goodwill basis from the third quarter of 2000 onwards.

Intense3D, based in Huntsville Alabama, and best known for its highly acclaimed Wildcat range of professional products, is a leader in very high performance 3D graphics and digital media accelerators for PC workstations, sold primarily through companies such as Compaq, Dell and IBM. Intense3D recently announced a new design-win at Sun Microsystems for Sun's new Expert3D range of graphics products, marking Intense3D's entry into Unix workstation graphics.

Mr. Kent added: "We expect our pending acquisition of Intense3D to fuel an even faster pace of growth in our professional business during the second half of the year and to liberate engineering resources for accelerating our entry into additional growth markets, both on the traditional PC and the emerging appliance platforms.'' Founded in 1994, 3Dlabs is a leading supplier of integrated hardware and software graphics accelerator solutions for workstations and design professionals. 3Dlabs develops silicon, boards and software drivers.

3Dlabs sells its award-winning Oxygen and Permedia products to leading PC manufacturers including Compaq, Dell, Everex, Gateway, Hewlett-Packard, Hitachi, IBM, MaxVision, and NEC, through an international distributor and reseller network and online at www.3dlabs.com.