Nexcom Technology Inc. Expands Sales Channels and Adds Manufacturing Capacity for NexFLASH Products; Signs U.S. Distribution Agreement with Nu Horizons.

SUNNYVALE, Calif.--(BUSINESS WIRE)--May 17, 1996--Nexcom Technology Inc. today announced the establishment of several new business relationships to broaden sales channels and increase product capacity for the company's NexFLASH(TM) Serial Memory products.

Nu Horizons Electronics Corp., a leading multi-regional distributor of high technology semiconductors, has signed-on to become Nexcom's United States distribution partner. Additionally, several well established sales representatives throughout the U.S. have also signed agreements to represent the Nexcom product line.

Nexcom, a privately held company, entered into the flash memory market in December 1995 when it announced its NexFLASH technology and the market's first high density, low-voltage Serial Flash memories. The 8M-bit NX26F080 is tailored for battery-operated microcontroller-based applications that use Flash memory to store and/or transfer data, audio and images, in a portable or mobile environment.

Applications include digital cameras, portable scanners, voice/data pagers, cellular phones and accessories, hand-held terminals and meters, and portable data acquisition equipment. "Nexcom's innovative NexFLASH technology offers an attractive low-voltage, low-power alternative to manufacturers of battery-operated electronic products," said Arthur Nadata, president of Nu Horizons.

"Serial Flash is one of the hottest new design-in segments of the market. We are very excited about working with Nexcom and are looking forward to launching Nexcom's Serial Flash devices and other upcoming products."

Nexcom Technology Expands Sales Channels

"Nu Horizons is a fast growing, highly technical, service-oriented distributor, with extensive experience in providing programmable semiconductor solutions," said Nagesh Challa, president and chief executive officer of Nexcom Technology Inc.

"We are extremely pleased to team-up with the Nu Horizons organization. They are a great match for our market focus and will compliment the high caliber sales representatives we have recently signed-on throughout the U.S." -0-

Recent additions to Nexcom's U.S. Sales Representative
organization include:

Representative                Territory

CSR                           Georgia, Alabama, Tennessee,
                                Mississippi
Dyna Rep                      Southern California
J.A. Daniels & Associates     San Diego, California
ITI                           New England
L-Mar Associates              Upper State New York
Micro Sales, Inc.             Illinois, Wisconsin
Micro Sales, Inc.             Oregon, Washington, Idaho
Parallax                      Metro New York, New Jersey
Quantum Marketing             North Carolina, South Carolina
SEC                           Florida, Puerto Rico
TL Marketing                  Texas, Oklahoma, Louisiana, Arkansas
TMC                           Ohio, West Pennsylvania, West Virginia

Fab Capacity Added

To further secure wafer capacity, Nexcom has announced volume production of Serial Flash memories from the foundries of United Microelectronics Corp. (UMC), one of the largest semiconductor companies in Taiwan. The addition of UMC provides Nexcom with two foundry sources.

The first was Oki Electronics Corp. of Japan which has a long standing strategic alliance with Nexcom. Currently, the UMC facility is producing 5V and 3V NexFLASH Serial memories using a 0.7 micron process with migration to smaller process geometries underway.

Nexcom Technology Expands Sales Channels

"The elegance of the NexFLASH technology is its manufacturing simplicity," said Challa. "This, combined with the high quality of our fabrication partner's facilities, has given us the ability to put our 5V or 3V NexFLASH products into volume production."

Volume production capability and improved manufacturing yields have allowed Nexcom to improve pricing by more than 30 percent. The NX26F080 is priced in the $14 to $20 for quantities in the 100K range depending on voltage, temperature and test grade. Product availability is eight to ten weeks.

About Nu Horizons

Selected by Forbes Magazine as one of the Top 200 fastest growing companies in the United States, Nu Horizons provides innovative, total semiconductor solutions specializing in products and technologies that are faster, smaller, and lower power. Nu Horizons has 19 branch offices and two stocking locations in the U.S.

Nu Horizons was established in 1982 and is traded on NASDAQ under the symbol NUHC. For more information, visit the Nu Horizons home page at http://www.nuhorizons.com.

About Nexcom Technology

Nexcom Technology Inc. designs, manufactures and markets advanced Flash memory IC products tailored for emerging portable and mobile "media-storage" applications.

The company's patented low-voltage NexFLASH technology and products are ideal for designers of computers, communications, industrial, consumer, and battery-operated electronics, requiring data, audio, and image storage in a portable/mobile environment.

For further information about the complete family of NexFLASH products, write or call Nexcom Technology, 532 Mercury Drive, Sunnyvale, Calif. 94086, telephone [phone] ext. 49, fax [phone]. -0-

Note to editors: NexFLASH(TM) is a trademark of Nexcom Technology Inc. All other marks are held by their respective owners.

CONTACT: Nexcom Technology Inc., Sunnyvale

Robin Jigour, 408/732-8553 (VP marketing and sales)

or

Porchivina & Associates

Deborah Porchivina, 415/893-8183

email: [e-mail]