Bermuda-based hardware and software manufacturer 3Dlabs Inc. Ltd. announced this week it has raised an additional $10 million for working capital needs.

The company said the investment was from a "strategic investor" and was a "convertible subordinated debt financing deal".

This investment was the second major capital injection into the company in recent months, following a similar investment of $4 million last December.

The note bears interest at a rate of 4.5 percent per annum payable at maturity or conversion in cash or stock at the option of the company, and matures in January 2004.

In the event that the note is converted, 3Dlabs would issue up to approximately 4.5 million shares of common stock to the holder. 3Dlabs is the workstation graphics authority, supplying graphics accelerator solutions for professionals in Computer Aided Design (CAD), Digital Content Creation (DCC), and visual simulation markets. On the web: www.3dlabs.com.