has seen a large increase in its revenues during the fourth quarter of 2000, and expects to out-perform analysts predictions.

The good news from the supplier of integrated hardware and software graphics accelerator services came due to a surge in revenues at the end of the three month period.

The Hamilton company said it expected revenues to rise by at least 65 percent to between $23.5 million and $24.5 million, from $14.2 million a year earlier.

The company saw growth in one particular line of products, Wildcat, while its other main product, a system called Oxygen continued to show strong sales.

Six months ago total revenues for the quarter were just over $15 million, up by 84 percent from the $8.2 million reported in the first quarter of 1999.

At the same time the company reported net income of $141,000, or a penny a share, fully diluted, compared to a net loss of $2.2 million, or $0.12 per share, in 1999.

Osman Kent, president and chief executive officer of 3Dlabs said the first quarter of 2000 marked the company's sixth sequential quarter of revenue growth and continued profitability.

On April 10, 2000, the company announced it had signed a definitive agreement to acquire the assets of the Intense3D operations of Intergraph Corporation in an all-stock transaction. The acquisition was at the time expected to be help 3Dlabs on an earnings before goodwill basis from last quarter.

Intense3D, based in Huntsville Alabama, and best known for its highly acclaimed Wildcat range of professional products, is a leader in very high performance 3D graphics and digital media accelerators for PC workstations, sold primarily through companies such as Compaq, Dell and IBM. Intense3D recently announced a new design-win at Sun Microsystems for Sun's new Expert3D range of graphics products, marking Intense3D's entry into Unix workstation graphics.

Mr. Kent said the acquisition of Intense3D was expected to fuel an even faster pace of growth during the second half of 2000 and was going to liberate engineering resources for accelerating its entry into additional growth markets, both on the traditional PC and the emerging appliance platforms.

Founded in 1994, 3Dlabs is a leading supplier of integrated hardware and software graphics accelerator solutions for workstations and design professionals. 3Dlabs develops silicon, boards and software drivers.

3Dlabs sells its award-winning Oxygen and Permedia products to leading PC manufacturers including Compaq, Dell, Everex, Gateway, Hewlett-Packard, Hitachi, IBM, MaxVision, and NEC, through an international distributor and reseller network and online at www.3dlabs.com.

Shares in 3Dlabs were up 1 3/16, or 52 percent, at $2-3/8 in yesterday's trading on Nasdaq. The stock price has a 52-week range between $5/8 and $10-1/2.