San Jose, CA December 21, 2000 - Quantum3D®, Inc. announced today the award of a PC-IG contract for air traffic and approach control simulator systems with Indra, the leading provider of Information Technology in Spain. Under the terms of the contract, Quantum3D will supply over sixty AAlchemy™ PC-based Image Generators (PC-IGs) to power the largest air traffic and approach control simulator project in the world. The Quantum3D AAlchemy Family of PC-IGs is the company's third generation integrated visual computing system. 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.

Indra and the Spanish Civil Aeronautical Training Society (SENASA) will develop and install a suite of air traffic and approach control simulators for the Center of Simulation and Training located at the Barajas Airport in Madrid. The center is designed to provide a precise replica of local control centers that enables controllers to learn in a synthetic environment that provides the same level of fidelity as the real one. The new center is designed to accommodate the continuing growth of air traffic across Spain by training civil air traffic controllers and pilots on approach control techniques. The flagship of the center includes six Tower Simulators powered by Quantum3D AAlchemy TX PC-IGs with SwapLock™ precision inter-channel synchronization that permits flexible deployment in two independent scenarios - with either 180 or 360 degrees fields of view for tower applications. With all stations, the training center will be able to provide simultaneous training for 60 advanced control positions and 288 standard control positions allowing for 350 students total.

The new simulation center will be the largest of its kind in the world and will be equipped with the most advanced technology in the market including Quantum3D AAlchemy PC-IGs. AAlchemy PC-IGs are equipped with Quantum3D's unique Parallel Rendering Architecture™ that harnesses the power of eight 3dfx VSA-100 graphics chips per channel for a combined graphics memory bandwidth in excess of 21 GB/sec. The AAlchemy-based tower simulation's visual system is able to simulate the controller's line of sight from the tower because AAlchemy provides unsurpassed image quality via the system's T-buffer™ full-scene, sub-pixel anti-aliasing (FSAA), trilinear-filtering, per-pixel fog, FXT1 texture compression and high resolution texture map support for enhanced rendering of geo-specific databases. AAlchemy delivers this level of image quality at sustained 30 Hz frame rates with over fifty 500-polygon articulated moving models per channel per frame via the systems' OpenGVS™ realtime 3D scene management software with SSE™ optimization, which leverages the enhanced floating point processing capacity of the Intel Pentium-III Architecture. In addition to image quality and performance, AAlchemy's support for key simulation features including SwapLock™ precision multi-channel synchronization, floating point Z-buffering for improved moving model resolution, along with the ease of development provided by OpenGVS were essential elements in Quantum3D's selection by Indra.

"Image fidelity with no-compromise sub-pixel anti-aliasing, multi-channel synchronization and sustained 30 Hz performance with a tremendous load of moving models and light points are key for ATC applications," said Igor Ramos Sanchez, Director of Visual Systems Engineering for INDRA. "AAlchemy was the only PC-based system that could deliver the performance, image quality and key simulation features that met the stringent training requirements required for the Spanish Center for Simulation and Training project. And with OpenGVS, we're able to develop the visual elements of the project in record time an still achieve unprecedented performance levels."

"Indra has one of the best ATC simulation teams in the world, so being chosen by them for this flagship project is a huge win for AAlchemy, OpenGVS and Quantum3D," stated Ross Q. Smith, Founder and VP of Sales & Marketing. "ATC was once the province of high-end proprietary systems and we look forward to working with Indra to make AAlchemy and OpenGVS the standard for this market too."

About Indra
Indra is the leading Information Technologies (IT) company in Spain. In 1999, the company achieved revenues of 577 million Euros ($517M USD) and a backlog of more than 901 million Euros ($807M USD). The company's activities are divided into three lines of business: Information Technologies, Simulation and Automatic Maintenance Systems, and Electronic Defense Equipment. Indra is an outstanding point of reference on the markets in which it operates, both nationally and internationally. Present in more than 40 countries on the five continents, more than 40% of the company's billing in 1999 came from international activity. This position is strengthened by a network of delegations and permanent offices, allowing the company to acquire sound knowledge of the markets on which it operates, as well as by international agreements and strategic alliances.

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.

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Quantum3D, AAlchemy, SwapLock, OpenGVS and Parallel Rendering Architecture are trademarks of Quantum3D. 3dfx and Voodoo are registered trademarks and VSA-100 and T-Buffer are trademarks of 3dfx Interactive. All other trademarks are the property of their respective owners.