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THE BOARD OF DIRECTORS OF CRAY COMPUTER APPROVES REVISED BUSINESS PLAN

 THE BOARD OF DIRECTORS OF CRAY COMPUTER
 APPROVES REVISED BUSINESS PLAN
 COLORADO SPRINGS, Colo., Feb. 12 /PRNewswire/ -- The board of directors of Cray Computer Corp. (NASDAQ: CRAY) at its meeting on Feb. 11, 1992, approved a revised business plan for 1992.
 The CRAY-3 project team is still planning to test the next prototype version before the end of March. The problems that were identified in December are being addressed and the solution to each of them is expected to be included in that version. This will be the first opportunity to review technical progress since December. On Feb. 7, 1992, the company received notice from NERSC that the Software Collaboration Project was no longer appropriate. Software development for the CRAY-3 continues in-house.
 However, the cancellation of the NERSC contract for a 16 processor CRAY-3 in December has deprived the company of an installation for demonstration in support of further sales and the associated revenue to finance the previously planned growth in production. In addition, the market opportunities for 1992 do not appear sufficient to warrant the risk of increasing expenditure to build a 16 processor configuration for the second half of 1992 without a signed contract. Accordingly, the company will continue at the current level of module build and test while seeking sales for configurations of 4, 8 and 16 processors.
 The company will not attempt to sell and support smaller systems in higher volumes. However, believing that smaller 4 and 8 processor CRAY-3 systems will be competitive, the company will seek a partner with complimentary skills to its own, for the purpose of expanding the prospects for the sale of smaller configurations. Complimentary capabilities could include, but are not limited to, marketing, manufacturing, software and finance capability. Neil Davenport, president and CEO of Cray Computer explained, "The company does not know at this stage what form such partnership might take nor whether a partnership of any type is possible. It does believe that some form of arrangement with a third party could significantly enhance the prospects for the exploitation of the CRAY-3 in the available market window. The search for a suitable partner will take place in parallel with existing sales efforts."
 Cray Computer is engaged in the design and development of the CRAY-3 computer system.
 -0- 2/12/92
 /CONTACT: Neil Davenport or Greg Barnum both of Cray Computer, 719-579-6464/
 (CRAY) CO: Cray Computer Corp. ST: Colorado IN: CPR SU:


BB -- DV008 -- 9297 02/12/92 13:57 EST
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Date:Feb 12, 1992
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