Penguin Computing first to offer Linux-based AMD systems

San Francisco, CA - April 1, 1999 - Penguin Computing, Inc., the nation's largest and fastest-growing company focusing exclusively on turn-key Linux solutions, announced today that it now begun offering Linux-based computer systems that use AMD K6 series processors from Advanced Micro Devices Inc.(NYSE: AMD). These desktops, servers and workstations offer all the reliability of a Penguin system with the speed of an AMD K6 series inside. To mark the expanded offering, Penguin is pricing systems featuring high performance AMD processors extremely aggressively, starting at just $990.

Sam Ockman, president of Penguin Computing, believes that this move will make Linux-based systems an even more attractive alternative to traditional options. "Many of our clients have been looking for more competitively priced, high-quality hardware that still has the reliability of Linux. With AMD available in our lines, our customers can now get inexpensive, Penguin Linux systems, that are still backed by our dependable hardware, 24/7 customer service, and responsive technical support,” says Ockman.

The addition of AMD complements Penguin's Intel-based (Nasdaq: INTC) line. AMD K6-3 processors allow systems to operate at the same performance level as the newly released Pentium III by Intel Corporation. Earlier this month Penguin Computing announced that it is also offering Internet and Oracle (Nasdaq: ORCL) database applications on Linux computers systems powered by the new Intel Pentium® III Xeon".

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 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, deriving 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 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. It also has the most extensive testing and burn-in process in the Linux industry, far surpassing the big 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 Linux solutions and knowledge to a 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, but is planning an IPO later this year.

Penguin Computing can be reached at 1-888-PENGUIN, or at www.penguincomputing.com. To schedule an interview, contact David Drake of Merger Communications, Inc. (www.mergerusa.com) at (713) 267-2328 / daviddrake@earthlink.net. More information on Linux is available at www.linux.org.