Cray/Media:        Franklin J. Parisi 612-683-7130
Cray/Financial:    Mike Lindseth 612-683-7237

JAPAN'S IFS NAMES CRAY RESEARCH FOR
SUPERCOMPUTER AWARD, CRAY C90 SUPERCOMPUTER
ORDER TO BE COMPLETED LATER THIS MONTH

EAGAN, Minn., July 1, 1994 -- Japan's Institute of Fluid
Dynamics Science (IFS) today announced an award for a CRAY
C90 supercomputing system and other Cray equipment to Cray
Research, Inc. (NYSE:CYR) valued at approximately $32 million. 
The award, officially announced July 1 in Tokyo, will be
followed by a formal order later this month.  With the timing
of the award in July, the IFS order will be included in Cray's
1994 third quarter orders.

"We are extremely pleased to win this Japanese government-
funded business, especially since this business was earned
from such a widely respected technical center and long-valued
Cray customer," said John F. Carlson, Cray chairman and chief
executive.  In announcing the award, the Japanese government
said the system would be used to simulate complex
computational fluid dynamics (CFD) problems such as
turbulence, combustion, heat transfer and shock wave
interactions. 

IFS, headquartered at Tohoku University in Sendai, specializes
in advanced studies of computational fluid dynamics problems
in industry and government.  The new CRAY C90 system is
expected to be delivered and installed by year-end and will
replace a CRAY Y-MP8 installed in December, 1990.  The new
system will be used to simulate problems such as those
encountered in designing aircraft, high-speed trains and
industrial processes.

Carlson noted that the Japanese government order had been
anticipated in the company's second quarter.  "As a result, our
second quarter order report, due to be released July 26, will
fall short of expectations by approximately the value of the IFS
order.  Our financial results will, nevertheless, be on target for
the quarter," Carlson added.

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

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