Cray/Media:         Steve Conway, 612/683-7133
Cray/Financial:     Brad Allen, 612/683-7395
Bear Stearns/Media: Hannah Burns, 212/272-2395

BEAR STEARNS MOVES FIXED INCOME SECURITIES AND
DERIVATIVES BUSINESSES ONTO CRAY SCALABLE
SUPERCOMPUTER SYSTEM

EAGAN, Minn., May 2, 1996 -- Bear Stearns & Co. has selected a
Cray scalable parallel supercomputer system to run the Wall
Street leader's expanding fixed income securities and
derivatives businesses, Cray Research, Inc. (NYSE:CYR)
announced today.

A 256-processor CRAY T3D scalable parallel system and a
tightly linked CRAY C94 supercomputer system will be
installed this quarter at Bear Stearns' headquarters in
Whippany, New Jersey.  Several hundred Bear Stearns traders
will have direct access to the Cray system.  Financial terms
were not disclosed.

Cray won the new account by providing speedups of 30 to 45
times over the workstation clusters in benchmark comparison
tests using actual Bear Stearns workloads.  "Cray delivered
better performance and price-performance in our day-to-day
operations, and also gave us more headroom for growth,"
according to Peter D. Cherasia, senior managing director at
Bear Stearns.  "We were also impressed by the Cray systems
reliability and capability to solve complex financial problems. 
Cray is committed to working with us to achieve our aggressive
goals."

Cherasia said he expects the Cray system to advance Bear
Stearns' global leadership in fixed income securities and
expand the firm's position in the derivatives market.  "A major
part of the challenge with mortgage-backed securities,
derivatives and other such securities is running enough
scenarios to correctly assess risk.  The Cray system will
enable us to improve our ability to do that for our customers."

In the tests, he said, the Cray system performed firm-wide risk
analysis (global positioning) in under an hour, compared with
about 40 hours on existing equipment; and cut the time for bond
pricing from an average five minutes on the existing systems
to less than one-third of one second.  "We expect speedups on
our Cray system to transform the way we do business and to
give Bear Stearns traders and clients a significant advantage."

"Cray is proud to be associated with a leader of Bear Stearns'
stature," said Robert H. Ewald, Cray president and chief
operating officer.  "To our knowledge, this will be the most
powerful computer system ever installed on Wall Street."

In recent years, Ewald said, Cray has become the preferred
vendor for large, complex computing challenges at leading
financial-industry firms, including Merrill Lynch, Citibank,
Bank of America, Fuji Capital, Freddie Mac and others.  "This is
a natural evolution." he said.  "The financial industry's
computing challenges have grown enormously and are similar to
the problems Cray has been helping other customers solve for
two decades.  At the same time, Cray supercomputer systems
now start at well under $1 million, are air-cooled and fit
easily into office environments. "

Cray Research provides the leading supercomputing tools and
services to help solve customers' most challenging problems.

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