VSPA passes extreme reliability test.

BOCA RATON, Fla.--(BUSINESS WIRE)--Aug. 6, 1996--The Panda Project Inc. (NASDAQ:PNDA) announced Tuesday its VSPA semiconductor package has passed one of the most extreme reliability tests for operational qualification.

The VSPA semiconductor package successfully passed the 1000 hours of exposure to 85 degrees Centigrade (185 degrees Fahrenheit) at 85% relative humidity with the devices under a 3.3 volt bias. "The temperature and humidity test is the one many people in the industry have been waiting for us to pass and VSPA passed like a champion," commented John Bartoszek, Panda's VSPA director. Bartoszek said, "By passing this test we have already demonstrated that VSPA is at least equal to the current packages in terms of temperature humidity testing, and in many cases is better than QFP and BGA technology."

The testing was completed using a VSPA 320 pin package housing a CL GD5462 Visual Media(tm) accelerator chip supplied by Cirrus Logic. The temperature cycling tests are designed to expose semiconductor technologies to severe environmental conditions to assess survivability of the package. These tests were conducted at Integrated Qualification Labs (IQL) in San Jose, Calif., while the electrical testing was done at Cirrus Logic in Fremont, Calif., to verify proper performance of the chips. IQL is an independent test facility that is used by many semiconductor companies for their qualification testing.

"Based on our data, VSPA may well end up being a very significant innovation in the high density interconnect world," said Zef Malik, president, Integrated Qualification Labs (IQL).

"The VSPA package was confirmed as a robust technology, meeting and or exceeding reliability expectations for high pin count packages. VSPA may be the low cost alternative to the high density BGA, with superior performance, increased reliability, and wider temperature range acceptance. The technology has been designed for manufacturability and its adaptation is expected to be easier.

"Our evaluation was thorough, and full temperature range stresses were exercised. The evaluation concluded its superiority and given the physical materials and thermal properties, this package is expected to arouse the curiosity of the reliability professionals," said Malik.

The VSPA 320 is the same package The Panda Project demonstrated could house the Intel Pentium(tm), while reducing the size by over 80% from the current PGA part. The footprint is 27mm x 27mm. The VSPA 320 is a three row version of the flexible product, although a five row version of similar size would allow users to house 512 contacts.

The Panda Project recently licensed the VSPA technology to AMP Incorporated, the leading interconnect company, located in Harrisburg, Pa.

This press release contains forward-looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are delays in product development, competitive pressures, general economic conditions and the risk factors detailed from time to time in the company's periodic reports and registration statements filed with the Securities and Exchange Commission. The Panda Project Inc. was founded in 1992 to develop and produce innovative computer and semiconductor technologies.

For more information contact Kathy Adams or Barbara Coleman, MediaReach Public Relations, 561/659-4111 or The Panda Project, 561/994-2300. Visit Panda's Web site at http://www.archistrat.com. -0-

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CONTACT: MediaReach Public Relations

Kathy Adams or Barbara Coleman, 561/659-4111

or

The Panda Project

561/994-2300