LONDONDERRY, NH -- July 6, 1992 -- Panacea Inc. announced today that it has
signed a licensing agreement with SGS-THOMSON Microelectronics, an
exclusive provider of XGA video chipsets. Under the terms of the
non-exclusive agreement, SGS-THOMSON will bundle Panacea's DLD-XGA AutoCAD
accelerator software with its XGA chipsets. In addition, SGS-THOMSON will
cite Panacea as a preferred provider of display list processors to its OEM
customers, and assist in marketing other Panacea products to its customer
base.

SGS-THOMSON is a sole licensee of IBM's current XGA technology. Its XGA
chipsets, available in Micro Channel and ISA bus architectures, are sold
to a variety of graphics card manufacturers for use in their products, and
are the first commercially available XGA chipsets. According to Paul
Strzelecki, Director, Graphics Business Unit at SGS-THOMSON, "The XGA
arena is really starting to heat up, as more users are realizing that VGA
simply doesn't provide the capabilities they need in a graphically
demanding Windows and AutoCAD world. Panacea's solution for speeding up
AutoCAD and other Autodesk applications is recognized throughout the CAD
arena. We are happy to be adding their value to our customers, and look
forward to working with them in establishing XGA as the pre-eminent
graphics standard."

Jake Richter, Chief Technologist at Panacea, added, "We are committed to
increasing XGA's strong foothold among PC graphics platforms. Enabling XGA
users to realize the same performance gains under AutoCAD that users on
other graphics platforms are already enjoying, while also letting them
benefit from the superior graphics displays and speeds that XGA brings, is
a major step in the right direction."

Panacea's DLD-XGA enables users of AutoCAD Releases 10, 11 and 12 to
realize up to a 17X speed improvement in redrawing, panning and zooming,
the most commonly used operations. The DLD-XGA also works with Autodesk
AutoShade Version 1.X and Autosketch Versions 1, 2 and 3, enabling the
rendering and display of images in higher resolutions (up to 1024 x 768).

The DLD-XGA includes standard Panacea features such as full backward
compatibility with earlier versions of AutoCAD, an easy-to-use install
utility with context-sensitive help, the CustomColors color configuration
utility, full support for multiple viewports and full compatibility with
all third party AutoCAD add-on applications.

SGS-THOMSON's XGA chipsets are marketed to a variety of hardware OEMs
worldwide, and are currently being used in products by Genoa Systems,
Ahead Systems, AGT and Infotronic.

The Panacea DLD-XGA, sold via retail, is priced at $149. Versions of the
DLD for VGA/SuperVGA and 8514/A display adapters are available at prices
ranging from $99 to $249.

SGS-THOMSON Microelectronics designs and manufactures a wide range of
semiconductor components, including discretes, linear and dedicated
analog/digital IC's, semicustom, microprocessor, memory and graphics
devices. Phone: 01-44-454-616616.

Panacea Inc. is the world's leading provider of commercial and OEM display
drivers and software-only applications accelerators for graphics-intensive
applications. Panacea specializes in PC-based software for graphics
processors and graphics boards that support VGA/SuperVGA, 8514/A, TIGA, S3
and XGA graphics platforms. Corporate headquarters are located at 24
Orchard View Drive, Londonderry, NH 03053. Phone: 603-437-5022.

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