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CRAY RESEARCH, DIGITAL EQUIPMENT CORPORATION REACH WORLDWIDE MARKETING AGREEMENT

 CRAY RESEARCH, DIGITAL EQUIPMENT CORPORATION REACH
 WORLDWIDE MARKETING AGREEMENT
 Digital to Market and Sell Cray Entry-level Supercomputer
 EAGAN, Minn., Jan. 14 /PRNewswire/ -- Cray Research, Inc. (NYSE: CYR) and Digital Equipment Corporation (NYSE: DEC), announced jointly today a comprehensive agreement that grants Digital worldwide rights to market, sell and distribute the CRAY Y-MP EL supercomputer system. The agreement is effective today, and Digital sales of CRAY Y-MP EL systems will begin immediately. Digital announced its intention to price the CRAY Y-MP EL supercomputer system starting at under $350,000.
 The CRAY Y-MP EL system is an air-cooled, entry-level supercomputer that is fully compatible with Cray Research's entire supercomputer product line, and integrates easily into Digital's open distributed computing environment. Under terms of the agreement, Digital will sell the Cray Research system in conjunction with Digital's own high- performance technical computing (HPTC) products: the VAX vector systems and the DECmpp line of massively parallel systems.
 This agreement provides for an orderly marketing and sales transition. For the first six months of the agreement -- through June 30, 1992 -- both Digital and Cray Research will market and sell CRAY Y-MP EL systems. The agreement does not apply in certain limited cases, such as CRAY Y-MP EL systems sold in Japan and to certain government customers. Starting July 1, 1992, with those limited exceptions, customers will purchase supercomputer systems exclusively through Digital sales representatives. Cray Research will offer back-up sales support and applications expertise for the CRAY Y-MP EL system.
 "The CRAY Y-MP EL is the price performance leader in the entry-level supercomputing market," said John A. Rollwagen, Cray Research chairman and chief executive officer. "Today's agreement substantially broadens the marketing and distribution of this superior product through Digital's well-established global channels. We expect CRAY Y-MP EL sales volume to increase significantly in the next few years because of this agreement. We also expect a number of new CRAY Y-MP EL customers who will purchase larger Cray Research systems as their computing needs grow."
 According to Kenneth H. Olsan, president of Digital Equipment Corporation, "This agreement reinforces all three levels of Digital's open advantage strategy. The agreement integrates new technology into the open Digital environment, satisfies customers' needs through open business practices, open services and support programs."
 "Cray Research's network supercomputing strategy stresses 'open systems' compatibility with major hardware and software vendors in today's distributed processing networks," said Ed Masi, Cray Research's executive vice president of marketing. "Among other things, this agreement means that users of Digital platforms linked to Cray Research systems can access more than 1,000 additional third-party application codes that currently run on the CRAY Y-MP EL and the entire Cray Research product line. These application codes accelerate product development, increase R&D productivity and reduce R&D costs for customers."
 "By adding the CRAY Y-MP EL system to Digital's supercomputing product line, we will make maximum use of our existing infrastructure," said Ed Barker, high-end marketing manager for Digital. "We have highly trained sales and sales support personnel, and have invested significant resources in the entry-level supercomputing market customer. This agreement allows us to capitalize on that effort and expand our market share. Now, we can offer a complete range of superior price/performance solutions, including the CRAY Y-MP EL systems."
 Barker said the Cray/Digital agreement demonstrates Digital's open advantage strategy. "Customers can now create HPTC systems in an open technology environment, integrating appropriate supercomputing processors from both vendors into a single distributed network solution. The agreement shows Digital's long-term commitment to open business practices, developed to satisfy each customer's unique needs."
 Digital agrees to sell at least half of the CRAY Y-MP EL systems originally planned for sale in 1992. Today's agreement does not change Cray Research's previous estimate of more than 100 CRAY Y-MP EL sales in 1992. Cray Research announced this product in October 1991, and to date has received approximately 50 orders from customers worldwide.
 The initial agreement runs for three years, with provision for extension by mutual agreement. After 1992, the number of CRAY Y-MP EL systems committed to by Digital and Cray Research will be determined by Digital sales plans. Officials of both companies said they consider 1992 a building year for this relationship, and that they expect the benefits of the agreement, including sales volume increases, to become more evident in 1993 and succeeding years. A separate Cray Research/Digital agreement covering service for CRAY Y-MP EL systems is expected to be signed in the near future.
 Together, the two companies offer a broad range of supercomputing solutions targeted toward such markets as government, energy, aerospace, automotive, university, chemistry, pharmaceutical, environmental sciences and petroleum industries. These solutions include the VAX Supercomputing Gateway, a system that enables Digital's VAX systems to interact with Cray Research supercomputer systems.
 Cray Research, Inc., based in Eagan, creates the most powerful, highest-quality computational tools for solving the world's most challenging scientific and industrial problems.
 Digital Equipment Corporation, headquartered in Maynard, Mass., is the leading worldwide supplier of networked computer systems, software and services. The company pioneered and leads the industry in interactive, distributed and multivendor computing. Digital and its partners deliver the power to use the best integrated solutions -- from desktop to data center -- in open information environment.
 DECmpp and VAX are trademarks of Digital Equipment Corporation. CRAY Y-MP EL is a federally registered trademark of Cray Research, Inc.
 NOTE TO EDITORS: Announcement spokespersons for both companies can be reached Jan. 14 at Digital Equipment Corporation -- 508-467-7724 or 508-467-4236.
 -0- 1/14/92
 /CONTACT: (Media) Steve Conway, 508-467-7724 (1/14 only), Mardi Schmieder, 612-683-3538 or (Financial) Laura Merriam, 612-683-7395, all of Cray Research; or David Lynch of Digital Equipment Corporation, 508-467-7724/
 (CYR DEC) CO: Cray Research, Inc.; Digital Equipment Corporation ST: Minnesota, Massachusetts IN: CPR SU:


DS -- MN005 -- 9421 01/14/92 09:27 EST
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Date:Jan 14, 1992
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