Cray/Media: Mardi Larson, 612/683-3538 Cray/Financial: Brad Allen, 612/683-7395 CRAY ANNOUNCES INTENT TO SELL PRINTED CIRCUIT FACILITY TO UK FIRM JOHNSON MATTHEY Proposed Sale Is Part of Cray's Outsourcing Strategy; Johnson Matthey Plans to Expand Production EAGAN, Minn., Feb. 5, 1996 -- Cray Research, Inc. (NYSE:CYR) announced today that it has signed a letter of intent for UK firm Johnson Matthey to acquire Cray's inhouse printed circuit board facility, 234 Cashman Drive, Chippewa Falls, Wisc. The companies said finalization of the acquisition is contingent on a definitive sales agreement and a separate supply agreement, both of which are expected soon. Cray said the proposed sale includes plant, equipment, and inventory and is valued in excess of $40 million. As part of the supply agreement, Johnson Matthey will continue production of high-technology printed circuit boards for Cray, while also expanding the facility's production capabilities by supplying other customers. Upon completion of the agreement, the facility's 350 Cray employees of the facility would become Johnson Matthey employees. This proposed sale is part of Cray's efforts to streamline its business operations and improve its cost structure. According to Irene Qualters, executive vice president of Cray's Supercomputing Systems unit, the Cray printed circuit board facility has been operating at less than full capacity and selling it to Johnson Matthey will allow the center to increase its volumes, thus driving down costs to Cray for parts provided by Johnson Matthey. Qualters said that under the terms of the proposed supply agreement, Cray would protect its ability to effectively ship computer systems from its Wisconsin operation where it manufactures supercomputer systems. Cray's Beaverton, Oregon, facility manufactures Cray's business server products and is not affected by this agreement. Cray Research provides the leading high-performance computing tools and services to help solve customers' most challenging problems. ###