Nortech Systems Incorporated:           Quent Finkelson, 612/473-0833
                                        Perry Ketchum, 612/349-2727
Cray Research Inc.:                     Mardi Larson, 612/683-3538

NORTECH SYSTEMS TO PURCHASE FACILITY FROM CRAY RESEARCH

MINNEAPOLIS and EAGAN, Minn., Nov. 2, 1995 -- Nortech Systems, Inc.
(Nasdaq:NSYS) and Cray Research, Inc. (NYSE:CYR) announced today that they
have signed a letter of intent under which Nortech Systems would acquire
the assets of the Cray Machining Center, 206 Cashman Dr., Chippewa Falls,
Wisc., Cray's facility for manufacturing high-tolerance machined parts.
Completion of the acquisition is contingent on satisfactory negotiation of
a definitive purchase agreement as well as a supply agreement, the
companies said.

As part of the supply agreement, Nortech Systems will become a principal
supplier to Cray for its machined parts requirements for a period of time
to be specified in the definitive supply agreement, the two companies said.


"Our acquisition of this Cray facility is an excellent fit with our
strategy to expand our contract manufacturing capabilities to a high
level," said Quent Finkelson, CEO of Nortech Systems, Inc.  "Our pending
supply contract with Cray will allow us the time necessary to effectively
market this capability to other customers requiring high-tolerance, complex
machined parts and upper-level electronic assemblies.  Based on market
research and industry contacts which have already been made, we expect to
serve a wide variety of customers out of this facility."

The Cray Machining Center supplies high-tolerance machined components for
the company's computer systems.  Cray officials said that the Machining
Center has been operating at less than its capacity and that selling the
center to Nortech will allow the center to increase its volumes, thus
driving down costs to Cray for parts provided by Nortech.   The current
facility was built in 1988 with additions in 1991.

Nortech Systems, Inc., based in Wayzata, Minn., is a manufacturer of wire
harnesses, cable assemblies, and electromechanical assemblies.  Nortech
Systems' Aerospace Systems Division, Fairmont, Minn., produces cable
assemblies primarily for the defense industry.  Nortech Imaging
Technologies Division, Plymouth, Minn., designs, manufacturers and markets
high performance display monitors for medical imaging, document imaging,
radar and industry applications.  Nortech Systems' subsidiary, Nortech
Medical Services, Inc., Wayzata, provides practice management and
information management services for the health care industry.

Cray Research provides the leading high-performance computing tools and
services to help solve customers' most challenging problems.

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