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NEW CRAY RESEARCH PROGRAM CREATES ATTRACTIVE MIGRATION PATH FOR ITS DEPARTMENTAL SUPERCOMPUTER CUSTOMERS

 EAGAN, Minn., Jan. 10 /PRNewswire/ -- Cray Research, Inc. (NYSE: CYR) today announced a program designed to address market demand for increasingly powerful, production supercomputing systems beginning well under the $1 million price point, the company said.
 Under the terms of the program, customers ordering CRAY EL98 systems, Cray Research's current departmental supercomputer system, and a next-generation system, currently in final development, are eligible for lower combined pricing, according to Bob Ewald, Cray Research chief operating officer, supercomputer operations. Volume shipments for the next-generation departmental supercomputer from Cray Research are slated to begin in first-quarter 1995 and customers in the new program will receive priority shipments at that time, he said. The program applies to combined orders received on or after Oct. 1, 1993.
 Pricing for the CRAY EL98 systems begins at approximately $300,000 (U.S.). The next-generation departmental supercomputer systems are expected to be 6 to 12 times more powerful than the company's current departmental systems at the same price points, he said.
 "We expect both these systems to significantly expand Cray's installed base in the competitive departmental computing market."
 Since introducing the company's first departmental supercomputing system in fourth quarter 1991, he said, Cray Research has received more than 200 orders for these systems, more than half from new-name customers, and has become a key player in this market sector. There are more than 150 Cray Research departmental systems installed to date, he said.
 The systems have also helped Cray Research to penetrate new markets -- such as the financial, construction and auto-industry supplier markets -- and new geographies, such as the former Eastern Bloc and new areas of Southeast Asia.
 The next-generation departmental supercomputer systems are expected to have the highest peak performance and the highest sustained-to-peak performance of any system in their class, according to Ewald. The 1995 systems will be binary compatible with the company's current departmental products. "This means that applications software programs running on the current products will run on the
next-generation products without modification," he said. The next-generation departmental systems are also compatible with larger Cray Research parallel vector supercomputers, including the top-of-the-line CRAY C916 system, and can be connected to the company's CRAY T3D massively parallel processing system.
 To bring Cray Research supercomputing power to a broader range of customers, primarily those in the commercial and industrial marketplace, Cray Research announced the company's first departmental supercomputing systems, the CRAY Y-MP EL series, in late 1991. In March 1993, Cray Research announced the follow-on CRAY EL98 systems, providing more than twice the peak performance of the earlier products at the same prices. In July 1993, the company announced its smallest, lowest-price system ever, the CRAY EL92 deskside supercomputer system, priced from $125,000 (U.S.).
 Departmental supercomputing systems are small supercomputers that are typically priced low enough to be acquired out of departmental, rather than corporate, budgets, or by smaller organizations that can't afford higher price points. In the past, these systems have also been called entry-level supercomputers or minisupercomputers. The market for scientific and technical computing systems priced below $1 million, which includes many departmental systems, is expected to have a compounded aggregate growth rate of more than 20 percent over the next few years, according to various experts.
 "We have a long-term commitment to this market," said Ewald. The dramatic performance gains anticipated for Cray's next-generation departmental systems are based on the company's recent progress in transferring the computational portion of its high-end central processing unit (CPU) onto two custom-designed integrated circuits (chips), he said.
 Cray Research creates the most powerful, highest-quality computational tools for solving the world's most challenging scientific and industrial problems.
 -0- 1/10/94
 /CONTACT: Mardi Larson of Cray Research, 612-683-3538/
 (CYR)


CO: Cray Research, Inc. ST: Minnesota IN: CPR SU: PDT

DS-AL -- MN007 -- 0462 01/10/94 09:46 EST
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Date:Jan 10, 1994
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