Penguin Computing - Quickly Becomind "The Dell" of the Linux Market

Announces Pentium III Xeon

San Francisco, CA – March 18, 1999 – Penguin Computing, Inc., the nation's largest and fastest-growing company focusing exclusively on turn-key Linux solutions, announced today that it now offers Internet and Oracle database applications on Linux computers systems powered by the new Intel Corporation's (Nasdaq: INTC) Pentium® III Xeon". The Pentium III Xeon processor for workstations and servers, which debuted yesterday, is the most powerful, reliable and compelling platform for viewing, creating, and sharing Internet-driven content.

Penguin Computing is able to provide Pentium III Xeon powered turn-key Linux-based systems immediately. Penguin is therefore uniquely positioned to take advantage of the explosive growth of both Linux and E-commerce. E-commerce revenues are estimated to reach $1 trillion in the next decade.

Penguin's business model resembles that of Dell Computer (Nasdaq: DELL) in that it builds every computer and system from scratch, to meet the users exact needs. But, unlike Dell, Penguin focuses exclusively on Linux computers and nearly all of its sales are done via the Internet. In fact, 98% of the products Penguin sells are ordered online.

According to Allison Huynh, vice president of Penguin Computing "Penguin is the first company to sell Linux turn-key solutions for E-commerce. Other companies selling computers configured with the Linux operating system usually don't have the same kind of critical focus we do; they just offer Linux as a sideline. With Penguin Computing, you get Linux experts in every phase of the business. Plus, we can have your Linux system with Oracle 8 completely configured, optimized and delivered in only one week, at approximately one-third of the cost of a Unix-based system with similar performance."

Penguin is already working with leading Internet-based companies, such as Excite (Nasdaq: XCIT), Paramount Pictures and Amazon.com (Nasdaq: AMZN), which enjoy quick deployment time and support 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.

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 to provide an easy way to deploy Linux solutions. 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 can be reached at 1-888-PENGUIN, or at www.penguincomputing.com. To schedule an interview, call David Drake at Merger Communications, Inc. at (713) 267-2328 (www.mergerusa.com). More information on Linux is available at www.linux.org.