The impetus for the LMP-1 Roadster-S came at the close of 1998, when both the FIA GT Championship and the United States Road Racing Championship eliminated the GT1 category in which the Esperante GTR-1 had competed since 1997. Rather than modify the existing GT1 car into a prototype, Panoz elected to commission an entirely new design, believing a purpose-built car would be more competitive against the incoming Audi and BMW factory programmes in the American Le Mans Series — a championship Panoz itself had helped found.
Reynard Motorsport handled the design, carrying forward many styling cues from the Esperante GTR-1 including the front-engine layout. The narrow front fenders framed deep valleys leading to radiators positioned ahead of the cockpit, while a NACA duct fed the engine air intake. The sides of the car were sculpted at multiple angles to channel airflow and aid cooling. The cockpit sat behind the engine and just ahead of the rear axle, with a single rollhoop emerging from an otherwise low roofline. Powering the car was the Ford Elan Power Products 6L8, a 6.0-litre V8 unit, mated to an X-Trac six-speed sequential gearbox.
The LMP-1 Roadster-S debuted at the second round of the inaugural 1999 American Le Mans Series season, backed by title sponsor Visteon. Only one chassis was ready in time for the debut, with an older Esperante GTR-1 modified to LMP regulations serving as the second entry. The new car took fifth place on debut. Both chassis were then entered at the 24 Hours of Le Mans, where they completed the race to finish seventh and eleventh behind BMW, Audi, and Toyota.
Returning to the ALMS for Mosport, both Panozes overcame the Riley and Scott-Fords, Ferrari 333 SPs, and the withdrawn BMW V12 LMRs to finish first and second overall. BMW reclaimed the top position at the next round, though the two Panozes completed the podium again, and a further win followed at Portland. A third chassis was completed for customer team J&P Motorsport in time for the Petit Le Mans, where the factory entry took overall victory over BMW. Panoz secured the LMP teams' championship at the season's end by two points over BMW.
For 2000, one factory car was sold to the Danish squad Team Den Blå Avis for the Sports Racing World Cup, while two new chassis were built for the factory ALMS programme. Results were mixed: neither car finished Sebring, though a win at the 1000km Nürburgring followed the Le Mans round where all four Panoz entries present — including two from Japanese team Team Dragon — finished. Panoz ended 2000 third in the LMP championship behind Audi and BMW.
At the start of 2001, factory attention switched to the new LMP07 successor, and the LMP-1 Roadster-S cars were sold off to privateer teams. Westward Motorsports and Lanesra competed in the European Le Mans Series, with Lanesra winning at Vallelunga. When the LMP07 proved uncompetitive, Panoz reversed course and returned to the LMP-1 Roadster-S midseason, promptly winning on its comeback debut and taking further victories at Portland and Mid-Ohio. Panoz accumulated enough combined points from both cars to finish second in the LMP900 championship behind Audi.
For 2002, Panoz introduced the LMP01 Evo, a revised version of the LMP-1 Roadster-S built to address the LMP07's failings and restore competitiveness. The nose was substantially reshaped to a narrower, more pointed profile at the front fenders and center. Brake-cooling ducts were enlarged, and the rear bodywork was extended to enclose the rear wing mounts, which were brought closer together in a manner more typical of rival prototypes. The air exhaust vents on the flanks were also enlarged.
Under factory operation the Evo won at Sears Point in 2002. It continued into 2003 under JML Team management with retained factory support, recording a string of five consecutive third-place finishes and a second at the final Petit Le Mans. At the 2003 24 Hours of Le Mans one of the two JML entries finished fifth behind the dominant Audi and Bentley cars. The programme was retired at the season's end as Panoz redirected its motorsport focus to the Esperante GT-LM for the ALMS GT2 class.
The LMP-1 Roadster-S remains distinctive for being one of the few purpose-built endurance prototypes of its era to use a front-engine layout, a configuration driven by Don Panoz's insistence on retaining a connection to the Panoz road car heritage. The car won the ALMS LMP teams' championship in 1999 and was competitive enough to defeat BMW factory machinery on multiple occasions during a period when American Le Mans Series competition was fierce. Its racing lineage spanned five seasons across three iterations — the original LMP-1 Roadster-S, the privateer-operated derivatives, and the LMP01 Evo — making it one of the more durable privateer prototype programmes of the early ALMS era.