ORLANDO, FL, I/ITSEC November 27, 2000 - Quantum3D, Inc.™ (Booth #1210) announced today at the Interservice/Industry Training, Simulation and Education Conference (I/ITSEC), the signing of a multi-million dollar sub-contract from Lockheed Martin. The contract calls for Quantum3D to provide PC-based Image Generators (PC-IGs) for the United Kingdom Combined Arms Tactical Trainer (UK CATT) program on which Lockheed Martin is the prime contractor. Under the terms of the contract, Quantum3D will supply over 1,000 channels of AAlchemy™, Quantum3D's advanced realtime 3D visual computing system, to Lockheed Martin Overseas Corporation.

The UK CATT Program-which enables precision training of United Kingdom armored and infantry battle groups with reconnaissance, aviation, artillery, engineering and air-defense elements collaborating in a wide variety of tactical situations and scenarios, is similar in nature to the US Army's Close Combat Tactical Trainer (CCTT). The mission critical nature of UK CATT, as well as the size and scope of the program, marks a critical milestone in the acceptance of PC-IGs for the VST market.

The Quantum3D AAlchemy Family of PC-based Image Generators is the company's third generation integrated visual computing system. Targeted at simultaneously meeting the cost targets and the performance, image quality and special capabilities required by today's most demanding VST applications, AAlchemy features an advanced system architecture with dual Intel® Pentium® III processors and AAlchemy AA5 graphics subsystems, which are based on the VSA-100™ chipset from 3dfx Interactive®, Inc.

With its unique, Parallel Rendering Architecture that harnesses the power of eight or more 3dfx Interactive VSA-100™ graphics chips per channel with a combined graphics memory bandwidth in excess of 21 GB/sec, AAlchemy delivers the highest performance realtime 3D capability achieved in PC-based systems ever, while simultaneously providing unsurpassed image quality via the system's T-buffer™ full-scene anti-aliasing (FSAA), trilinear-filtering, per-pixel fog, FXT1 texture compression and high resolution texture map support for enhanced geo-specific database capabilities. This unparalleled level of delivered performance and image fidelity, coupled with AAlchemy's support for key simulation features including SwapLock™ precision multi-channel synchronization, floating point Z-buffering for improved target resolution and a digital pixel port for sensor and other post-processing capabilities, enable AAlchemy to meet the stringent fidelity and performance requirements levied by Lockheed Martin for the UK CATT program.

"Quantum3D, Inc. pioneered the concept of the PC-based Image Generator and AAlchemy represents the culmination of years of effort and R&D-with a tremendous amount of help by 3dfx. Everyone who has worked on the AAlchemy project is extremely gratified that Lockheed Martin has chosen our products to power one of the most demanding synthetic environment training systems ever fielded", said Alasdair MacPherson, Quantum3D Director of VST Sales. "This contract enables Quantum3D to further establish itself as the leading supplier of open-architecture systems for the Visual Simulation and Training Market."

"AAlchemy illustrates the scalability of the 3dfx VSA-100 architecture, taken, of course, to the n'th degree. As usual, the Quantum3D team has delivered on the promise that 3dfx technology meets the most demanding 3D graphics requirements on the planet," said Scott Sellers, co-founder and chief technology officer at 3dfx Interactive, maker of the VSA-100 chipset and the Voodoo® family of 3D graphics accelerators. "We are proud to support both the Quantum3D and Lockheed Martin teams on this key win and we look forward to even more innovations together in the future."

About 3dfx Interactive
3dfx Interactive is a global leader in enabling the emerging age of visual communications, and the 3D multimedia revolution in personal computers and consumer products. With its patented and award-winning graphics accelerator chips, boards and software, 3dfx provides the technology to create high-impact visual experiences. The company is recognized worldwide for its ability to bring the world's finest games, educational content, interactive entertainment and media-rich business applications to life. 3dfx products are available in retail stores worldwide, and through leading PC makers including Compaq, Dell, Falcon Northwest and Micron. 3dfx has headquarters in San Jose, Calif., with engineering and manufacturing facilities in Richardson, Texas, Austin, Texas, and Juarez, Mexico. The company also operates www.3dfxgamers.com, the premier online community for Voodoo owners and gaming enthusiasts. 3dfx Interactive is available on the Web at http://www.3dfx.com. Note to Editors: Visit the 3dfx Virtual Press Room at http://www.3dfx.com/press.

About Quantum3D
Quantum3D, headquartered in San Jose, California, brings innovative new concepts and products to the embedded visual computing industry. From state-of-the art image generation systems for visual simulation and training applications to embedded graphics technology used for cockpit displays to purpose-built systems for the leading coin-op games and internet kiosk applications. Quantum3D designs and manufactures ruggedized, powerful PC-based systems that deliver unparalleled realtime graphics performance and image quality to provide the highest quality and value available in visual computing today.

Quantum3D, SwapLock and AAlchemy are trademarks of Quantum3D. 3dfx Interactive and Voodoo are registered trademarks and VSA-100 and T-Buffer are trademarks of 3dfx Interactive. SE/View is a trademark of Lockheed Martin Corporation. All other trademarks are the property of their respective owners