PANACEA, INC. MERGES WITH SPACETEC IMC CORPORATION

Merger Produces Powerful Combination of 2D and 3D PC Performance Graphics
Technologies

LONDONDERRY, NH -- March 1, 1995 -- Panacea, Inc. of Londonderry, New
Hampshire, a world leader in PC performance graphics display technology
and Spacetec IMC Corporation of Lowell, Massachusetts, world leader in
interactive motion control 3D hardware and software, announced today that
they have completed a merger. Panacea, Inc. will become a wholly-owned
subsidiary of Spacetec IMC Corporation and Panacea's founder and mentor,
Jake Richter, will remain President and Chief Technology Officer (CTO) of
Panacea, Inc.

The fundamental core business of both companies will remain essentially the
same, but company officials indicated that the merger allows the
development of several new products and foundation software tools using
the combined technologies. While no financial details regarding the merger
were made available, it should be noted that the size of Panacea's core
development staff has nearly doubled as a result of the merger.

Panacea is the world's leading developer and publisher of OEM and
commercial software-only display accelerators for PC graphics
applications, including AutoCAD and Windows. Panacea's TurboDLD display
list software for AutoCAD supports hundreds of different graphics chips
and boards, providing outstanding acceleration and productivity benefits
to AutoCAD users around the world. Likewise. Panacea's WinSpeed pro family
of graphics performance enhanced drivers for Windows is an ideal solution
for Windows users seeking better interactive graphics capabilities.

Spacetec IMC Corporation is the world's leading supplier of advanced 3D
interactive hardware and software including the revolutionary Spaceball
2003 Advanced 3D-I Controller and SpaceWare IMC interface software which
is proliferating the UNIX workstation mechanical computer-aided design
(CAD) market. The company is also gaining popularity with its
SpaceController Advanced 3D-I Controller in the PC CAD market and is about
to launch an even more revolutionary hand-held multifunctional advanced
3D-I games controller called the Spaceball Avenger which provides
breakthrough interactive 3D control capabilities in popular PC 3D action
games such as DOOM, DOOM II, Rise of the Triad, Dark Forces, Heretic and
Descent.

Spacetec IMC Corporation also devotes a significant part of its resources
to developing advanced 3D interactive software for various PC markets,
including the CAD and consumer markets. In December 1994, the company
released its SpaceWare 3D-I Always add-on software product for AutoCAD,
which for the first time ever allows universal seamless enhanced 2D and 3D
interactive designing and viewing in AutoCAD. SpaceWare 3D-I Always can be
run with a mouse or with the SpaceController for even more intuitive
interactive control.

"The merger is a great fit," says Dennis T. Gain, chairman and CEO of
Spacetec IMC Corporation. "Spacetec IMC is in the 3D interactive graphics
business, where graphics display performance is essential. Panacea's
knowledge and technical expertise in graphics display performance,
together with their tightly coupled relationships with the world's leading
vendors of graphics enhancement chips and boards, provides us with an
optimized way of developing early useful high performance interactive 3D
graphics products and technologies for the mass markets."

"We're very excited about the merger " says Jake Richter. president and CTO
of Panacea "With the furor surrounding 3D games and applications, Spacetec
IMC's innovative interactive 3D hardware input technology and interactive
3D software, combined with our unparalleled expertise in PC graphics
performance software, will provide a rapid but integrated transition from
enhanced interactive 2D graphics performance to enhanced interactive 3D
graphics performance. Our customers, both OEMs and end-users, will benefit
from the new breadth of technology we'll be able to offer them."

The merger will also see some rationalization in sales and marketing
operations, technical support and customer service for PC retail products,
but both companies will remain as separate trading entities. Spacetec
IMC's UNIX workstation business will remain the same and the European and
Asia Pacific business units will become responsible for Panacea's
international initiatives. Panacea's sales, marketing and retail technical
and customer support will move to Lowell, Massachusetts -- the new phone
number will be (508) 970-1760 (effective March 6, 1995). Panacea's OEM
support will remain with Panacea's Engineering Development and Services
group in Londonderry, New Hampshire. "The customers of both companies will
benefit from even better technology and services," say both executives.

Panacea, Inc.

Panacea, Inc., now a wholly-owned subsidiary of Spacetec IMC Corporation,
is the world's leading provider of commercial and OEM display drivers and
software-only application accelerators for graphics-intensive
applications, including TurboDLD for AutoCAD and WinSpeed Pro for Windows.
Panacea's main office is located at 24 Orchard View Drive, Londonderry,
New Hampshire 03053-3351, U.S.A. Phone: (603) 437-5022 or (508) 970-1760
(sales, marketing and retail technical and customer support). FAX: (603)
434-2461.

Spacetec IMC Corporation Spacetec IMC Corporation, a privately held
company, was established in April 1991 to develop, manufacture and market
advanced 3D interactive hardware and software products worldwide. Serving
the technical, scientific and consumer electronics markets, Spacetec IMC
Corporation is the leader in the new field of advanced 3D interactive
motion control. The company is headquartered at 600 Suffolk Street,
Lowell, Massachusetts 01854-3629, U.S.A. Phone: (508) 970-0330. FAX: (508)
970-0199.

 ============================================================
 From the  'New Product News'  Electronic News Service on....
 AOL (Keyword = New Products) & Delphi (GO COMPUTING PRODUCT)
 ============================================================
 This information was processed from data provided by the 
 company or author mentioned. For additional details, please 
 contact them directly at the address/phone number indicated.
 All trademarks are the property of their respective owners.
 ============================================================
 All submissions for this service should be addressed to:
 BAKER ENTERPRISES,  20 Ferro Dr,  Sewell, NJ  08080  U.S.A.
 Email: RBakerPC (AOL/Delphi), rbakerpc@delphi.com (Internet)
 ============================================================
