Nexar Technologies redefines personal computing for the new millennium; Next-generation PCs feature upgradable processors, memory, hard drives; Provide ultimate investment protection through customization, upgradability.

WESTBOROUGH, Mass.--(BUSINESS WIRE)--May 13, 1996 -- Taking direct aim at solving the PC obsolescence problem, Nexar Technologies Inc., today introduced a revolutionary new personal computing platform -- the world's first completely upgradeable PCs that can be easily, quickly and affordably upgraded by end users with industry-standard, off-the-shelf components.

Available immediately, the NEXARTM mid-tower business and multimedia systems are targeted at corporate, consumer and small office/home office (SOHO) users who require a flexible computer system architecture designed to easily accommodate future system expansion.

"Nexar Technologies' mission is to deliver the highest quality PCs at attractive price points that will satisfy users' current computing requirements and provide long-term investment protection," said Al Agbay, Nexar Technologies' Chairman and Chief Executive Officer. "Nexar Technologies has changed the rules of the PC game. We have delivered superior system upgradability that allows customers to select the industry's most advanced and expandable PCs at competitive prices, and we've virtually eliminated the risk of product obsolescence."

The NEXAR systems' "customize now, upgrade later" capability is accomplished through its patent-pending Inverted Socket Process Architecture (ISPA), which places the processor, system memory and cache sockets on the undercarriage of the motherboard. Through a removable panel, users can easily access the CPU, RAM and cache within minutes -- without opening the chassis cover and with no special tools required. In addition, the hard disk drive is mounted on a rail system that slides in and out of a lockable drawer in the PC's front panel. This makes updating the PC's most critical components, or swapping out hard drives, as easy as changing a lightbulb.

Unlike competitors' "modular" systems that promise flexibility and upgradability, NEXAR systems contain no proprietary backplane or components. Therefore, customers are not restricted to purchasing component upgrades from Nexar Technologies and can purchase industry-standard components from virtually any manufacturer when they upgrade.

"Faced with having to replace their completely functional PC less than two years after purchase, today's customers becoming are more cautious, hoping to view their investment as a longer-term proposition," added Agbay. "By enabling resellers and end-users to upgrade of all major system components with industry standard products, Nexar Technologies is setting a new standard for PC investment protection."

Products:

The NEXAR product family consists of three distinct, high-performance product lines: the NEXAR 4000 and NEXAR 7000 Series, which are targeted at small business and home users, and the NEXAR 9000 Series, which is ideal for corporate customers.

Pre-Configured Systems:

The NEXAR 4000 Small Business and Home Series are fully pre-configured NEXAR systems which include a comprehensive suite of multimedia, reference and productivity software, as well as on-line communications software, including CompuServe, America Online and Microsoft Network. The NEXAR 4000 Series provides significant value through high-quality components and by delivering significant performance advantages over similarly-priced, consumer-oriented PCs from Packard Bell and Dell.

Customizable Systems:

The NEXAR 7000 Small Business and Home Series are customizable "build-to-order" base systems that enable resellers to configure systems on a "just-in-time" basis to meet their customer's specific computing needs on demand. Like the NEXAR 4000 Series, the NEXAR 7000 Series systems compare favorably to consumer-oriented PCs from Packard Bell and Dell, but allow customers to select their own personal system configuration from any Nexar Technologies reseller.

The NEXAR 9000 Corporate Series is targeted at performance-minded users and will incorporate configurations that best meet the needs of the corporate customer. The NEXAR 9000 Corporate Series will match or exceed the performance and functionality of high-performance PCs from Compaq, HP and Gateway 2000 will be priced far below these systems.

For customers interested in either the NEXAR 7000 and NEXAR 9000 Series, Nexar Technologies offers an innovative purchase option that enables resellers to select base units separate from CPUs, RAM, cache or hard drive. Customers then have the option of purchasing these components, as well as additional peripherals directly from Nexar Technologies or other sources. Finally, these components can be easily "plugged in" to create a fully customized PC. This option gives customers the flexibility to choose from 1,500 system configurations.

Major Product Components:

Nexar Technologies is delivering the world's most technologically advanced PC systems. Its entire product line is equipped with the highest-quality, industry standard components, including:

The Intel Triton chipset to support both synchronous burst SRAM and EDO (Extended Data Out) DRAM memory and to provide PCI, Pipelined Burst Cache, Socket 7 and VRM (voltage regulator module) support; Intel Pentium processors (75 to 200 Mhz), as well as pin-compatible 6x86 CPUs from Intel, Cyrix and NexGen/AMD (100 to 150 Mhz and beyond); PCI Local Bus architecture; 64-bit PCI graphics accelerator with 1 MB of memory; Flash EPROM; one parallel and two serial; four ISA and three PCI expansion slots; Flash BIOS with Plug and Play extensions; a 1.44 MB 3.5" floppy drive; a 104-key Windows 95 keyboard and a two button ergonomic mouse.

To allow for maximum system expansion, NEXAR 7000 Series and NEXAR 9000 Series systems are customizable and upgradeable to support a 200 Mhz CPU; hard drives up to 4GB; 512 KB Synchronous or Asynchronous Pipeline Burst Static Random Access Memory (SRAM) cache; 128 MB Fast Page Mode or Extended Data Output (EDO) DRAM and an ISA Bus. Additional NEXAR system options include six, eight, or ten-speed EIDE CD-ROM drives; a 16-bit stereo sound card with MIDI; the 4Home personal page graphical user interface, 12-watt RMS speakers, a 28.8 baud fax/modem with interactive "on-line" gaming and a headset and microphone. These features and options can also be purchased as part of a pre-configured NEXAR 4000 system.

Distribution Strategy

Nexar Technologies utilizes a limited distribution strategy to avoid channel conflict and prevent margin erosion issues among its resellers. Nexar Technologies' channel of prominent value-added resellers (VARs), distributors, retailers, superstores and end-user direct organizations includes Ingram Micro, Fry's Electronics, and MicroWarehouse. These distribution outlets target resellers who provide value-added service to customers by taking full advantage of the NEXAR systems' innovative "customize now, upgrade later" concept.

Service and Support

Nexar Technologies is committed to providing extensive customer service and support and has developed the following warranty and technical support packages for its business and consumer customers:

On-Site Hardware Maintenance -- at the time of purchase, customers receive a one-year, on-site warranty (parts and labor) for diagnosis and repair within 24 hours. On-site service in the U.S. is provided by WANG Laboratories, Inc. In addition, affordable service contract extensions are available.

Hardware Upgrade Program -- this innovative program, available only from Nexar Technologies, enables NEXAR customers to "trade in" their existing CPU, RAM, cache, or hard drive for credit toward their upgrade purchase.

End User Toll-Free Technical Support Hot-Line - NEXAR customers receive toll-free support (hardware) from Nexar Technologies' highly trained staff of technical experts.

World Wide Web Support -- Customers can contact Nexar Technologies via the Web (http://nexartech.com) technical support inquiries or information on product upgrades.

About Nexar

Nexar Technologies Inc. manufactures and markets a new category of high-quality personal computer systems that offer consumer and business users the industry's most comprehensive level of flexibility and investment protection though complete customization and upgradability. A wholly-owned subsidiary of Palomar Medical Technologies, Inc. (NASDAQ: PMTI), a $60 million diversified corporation that manufactures and markets medical laser devices for cardiovascular and dermatological applications. Headquartered in Westborough, Mass., Nexar Technologies was founded by a team of veteran PC industry executives. The company sells its systems through a limited channel of national and regional network of value-added resellers (VARs), distributors, retailers and system integrators.

CONTACT: Craig Conrad/Megan O'Donnell Sara Buda/Tim Hurley

Nexar Technologies, Inc. Copithorne & Bellows

508/836-8700 617/252-0606