Penguin Computing Leading the Market in AMD processor-based servers

San Francisco – May 13, 1999 – Penguin Computing, the industry’s leader in complete turn-key Linux based solutions, announced today that it is displaying two of its new AMD processor-based servers at the Open Source Pavillion at Networld + Interop through May 14. These servers offer all the reliability of a Penguin system with the performance of an AMD-K6*-III series processor inside. To mark the expanded offering, Penguin is introducing complete Linux systems featuring high performance AMD processors.

Since Penguin Computing announced the availability of their AMD solution to the Linux world on April 1, 1999, the company has been flooded with requests for this machine. "Many of our clients have been looking for more competitively priced, high-quality hardware that still has the reliability of Linux. With AMD in our line, our customers now have even more choices for cost effective, high performance Penguin Linux systems that are backed by our dependable hardware, 24/7 customer service, and responsive technical support," says Sam Ockman, CEO of Penguin Computing.

The relationship with AMD complements Penguin's existing product line. AMD-K6-III processors allow systems to operate at high performance levels while selling at very competitive prices. "By fostering this relationship with Penguin Computing, we at AMD are once again demonstrating that our processors are a viable solution for businesses seeking enterprise computing at a competitive cost," said Thomas Knapp, Field Marketing Manager for AMD.

Penguin Computing is the established leader in selling Linux servers, workstations and desktops direct. Penguin's business model resembles that of Dell Computer (Nasdaq: DELL) in that the company builds every computer and system from scratch, to meet the users exact needs. But, unlike Dell, Penguin focuses exclusively on Linux computers and derives nearly all of its sales from the Internet. In fact, 98% of the products Penguin sells are ordered online.

Penguin is already working with leading Internet-based companies, such as (Excite Nasdaq: XCIT), Paramount Pictures, Viacom and (Nasdaq: AMZN), which enjoy quick deployment time and support from Penguin for their Internet focused businesses. Penguin enjoys a competitive edge over its competitors such as HP (NYSE: HWP) and (Compaq NYSE:CPQ) because of its narrow focus and lower cost-structure. It also has the most extensive testing and burn-in process in the Linux industry, far surpassing the larger manufacturers.

At present, Penguin Computing is the largest and fastest growing company to sell complete Linux solutions. The company was started by Open Source advocate Sam Ockman as a way to provide top-quality Linux solutions and knowledge to the fast growing Open Source Community. The company offers free standard technical support with all systems as well as upgrades and onsite support 24 hours a day, 7 days a week. Penguin Computing is currently a privately held company.

AMD, the AMD logo, K6, and the combinations thereof are trademarks and AMD-K6 is a registered trademark of Advanced Micro Devices, Inc.