Concurrent and Harris Computer Systems Corporation sign definitive agreement to combine real-time computer businesses.

OCEANPORT, N.J./FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--March 27, 1996--Concurrent Computer Corporation (NASDAQ:CCUR) and Harris Computer Systems Corporation (NASDAQ:NHWK) today jointly announced that they have signed a definitive asset purchase agreement for the previously announced transaction in which Harris Computer Systems Corporation agreed to sell its real-time business to Concurrent Computer Corporation. Harris Computer will retain its trusted computer systems (network security) business. The addition of Harris Computer's real-time business to Concurrent Computer Corporation will create a world leader in the real-time computer market where management anticipates high growth in multimedia and simulation applications. By retaining its Trusted Systems Division, Harris Computer Systems will focus on developing its leading position in the fast growing network security market.

Under the agreement, Concurrent Computer Corporation will purchase Harris Computer Systems Corporation's real-time computing business and 227,726 shares of Harris Computer common stock in exchange for 10 million shares of Concurrent common stock and $10 million liquidation preference of convertible, exchangeable preferred stock of Concurrent with a 9% coupon, convertible into Concurrent common stock at $2.50 per share. The transaction is subject to a number of conditions including approval by the stockholders of each company. The companies hope to complete the transaction by mid-year 1996.

Also under the agreement, John Stihl, Concurrent chairman, president and chief executive officer, will retain his position as chairman of the Concurrent board of directors. E. Courtney (Corky) Siegel, Harris Computer chairman, president and chief executive officer, will join Concurrent as president and chief executive officer.

Creates World Leader in Real-time Computing

Concurrent's John Stihl stated, "This is a significant opportunity for Concurrent. It combines the real-time expertise of two industry leaders, and creates a world leader in real-time computing, and real-time interactive video on-demand. The combination will position us at the front of the pack in such areas as real-time multimedia, military and commercial flight simulation, range telemetry, wagering and gaming, and weather and airspace radar processing. We also expect that the combination will create significant cost savings, allowing us to invest in new technologies for our existing markets and in exciting new growth areas for real-time computing."

Both companies have similar markets and real-time computer technologies and, equally important, each company brings unique strengths. For example, Harris brings larger multiprocessor configurations, a strong entry-level single-board system, and sophisticated real-time software development tools, while Concurrent brings industry leading system interconnect technology, interactive video-on-demand experience, and network products. Together, the combined businesses will offer their customers continued support for existing real-time systems, and a smooth migration path to next generation systems that combine the best technologies from both companies.

Well Positioned for Emerging Multimedia and Medical Simulation Markets

The combined businesses will also be well positioned in two rapidly emerging new markets where real-time computer technology is important: multimedia interactive video-on-demand (IVOD), and medical simulation.

In the multimedia market, Concurrent has demonstrated the advantages of its real-time computers for IVOD hotel and in-flight entertainment systems by beating the world's largest computer vendors (including IBM and DEC) in a number of competitive evaluations. Concurrent is also adding IVOD technology to flight simulators for instant pilot evaluation and debrief. There are numerous opportunities for IVOD in training and education with the companies' traditional government, military, and aerospace customers, as well as in other markets such as medicine.

In the medical market, simulation technology, based on Harris and Concurrent real-time computers, is now being experimentally applied to medical training. The real-time computing technology, and established relationships that both companies enjoy with the leading simulation integrators will provide a strong foundation for success in this emerging market.

Harris Computer Systems will Focus on Network Security Business

Corky Siegel, Harris Computer chairman, president and chief executive officer stated, "This is a win for both business divisions within Harris Computer Systems, as well as Concurrent. At Harris, we recognized the benefits of separating our real-time and trusted systems businesses into independent divisions last April. Now, the combination of Harris Computer's Real-time Division with Concurrent creates a world leader in real-time computing, and allows Harris Computer Systems to focus solely on developing its trusted systems business. In addition, Harris, as a business focused on the rapidly growing network security business, will have better access to private and public equity.

"The products from the Trusted Systems Division are industry leaders. Harris Computer's CyberGuard is a network firewall that protects a private network from unauthorized access from the Internet or other networks. CyberGuard is the only commercial firewall product rated by National Computer Security Center (NCSC) at the B1 level of trust. With network security as its focus, Harris Computer can build on its leadership position in the rapidly growing network security business."

Siegel stated that Harris Computer Systems has already initiated a search for a new chief executive officer to replace Mr. Siegel when he becomes president and chief executive officer of Concurrent upon completion of the transaction. Regarding his replacement at Harris, Siegel said, "We are seeking a recognized leader from the network computing industry to head Harris Computer Systems, and capitalize on its strong position in the secure computing market. The new CEO will inherit a strong executive team that has been working together for over a year. The team includes heads of sales, marketing, engineering, finance, and international operations. Our CEO search is well underway, and should be concluded prior to the completion of this transaction."

Harris Computer Systems Corporation, headquartered in Ft. Lauderdale, Fla., USA, is a leading supplier of high performance real-time and multi-level secure computer systems for commercial and government markets. The company's Real-time Systems Division designs, manufactures and markets the Night Hawk series of real-time computers for simulation, data acquisition and control applications and the Power Hawk system for entry level real-time applications. The company's Power/UX real-time operating system and development tools, available on Motorola 604-based single board computers, are used for embedded systems applications. Harris Computer's Trusted Systems Division is a leading supplier of computer security products.

Concurrent Computer Corporation, headquartered in Oceanport, N.J., USA, is the leading supplier of high performance, real-time computer systems. Applications for Concurrent computers include: simulation, measurement and control, C4I (command, control, communications, computers, and intelligence), wagering and gaming, financial transaction processing, and multimedia. The company provides sales and support worldwide from offices throughout North America, Europe, and Asia, as well as through authorized distributors.

CONTACT: Concurrent Computer Corp.

Ron Baker, Director Corporate Communications

908/870-5888

email: [e-mail]

or

Harris Computer Systems Corp.,

Beth Alonzo, Analyst/Investor Relations

954/973-5100

email: [e-mail]