Cray/Media:      Mardi Larson, 612/683-3538
Cray/Financial:  Brad Allen, 612/683-7395

CRAY RESEARCH REPORTS THREE-FOLD INCREASE IN
1994 FOR LOW-PRICED SYSTEMS ORDERS 

In 1994 Cray Gains About 100 New Customers

EAGAN, Minn., Jan. 25, 1995 -- Cray Research, Inc. (NYSE: CYR)
reported today that it received more than 70 orders in the
fourth quarter of 1994 and about 200 total orders in 1994 for
its low-priced CRAY EL90, CRAY J90 and CRAY SUPERSERVER
6400 (CS6400) systems.  This is a three-fold increase in
orders for low-end systems over 1993, continuing the
company's expansion in the growing market for low-priced
systems. 

U.S. list pricing for these systems begins as low as $150,000,
compared with $2 million and up for the company's most
powerful, high-end supercomputers.  Cray said it received
about 260 orders in 1994 for systems of all types.  Nearly half
of the more than 70 fourth quarter low-end orders were from
new customers and the company said it added about 100 new
customers in 1994.
 
"Our 1994 high-end system orders preserved Cray Research's
two-thirds global marketshare leadership in that important,
established sector," said Robert H. Ewald, Cray Research
president and chief operating officer.  "We expect our strong
momentum in the expanding scientific-technical and
commercial markets for lower-priced systems to continue in
1995."

Ewald said that 1994 low-priced system orders moved Cray
into new industries for the company, including health care,
insurance, light aircraft, and telecommunications, and
expanded the firm's presence in the automotive supplier,
banking and financial services, electronics, energy,
pharmaceutical, and university sectors.  

Business Systems

In fourth quarter 1994, Cray received 11 orders for its CS6400
system, which began shipping in February 1994 and is aimed at
client/server business applications such as decision support,
on-line transaction processing, and data warehousing.  Orders
came from seven new Cray customers, including an unnamed
Asian bank (the third financial services customer for this
system); Churchill Insurance, (one of the largest Oracle site in
Europe, which ordered two CS6400 systems through Amdahl). 
Existing Cray customer Samsung Electronics ordered and
installed a system in fourth quarter at its Communication
System R&D Center for telecommunication research.

Compact Supercomputers

Of the 70-plus fourth-quarter orders, more than 60 were for
the CRAY EL90 and CRAY J90 compact supercomputing systems. 
The CRAY J90 systems, slated to begin shipping early in 1995,
have netted more than 95 advance orders to date, Ewald said.  

Industrial customers for the compact supercomputers include: 
Raytheon Aircraft Company and Canadair, a division of
aerospace giant Bombardier Inc. (first orders from light
aircraft industry); Motorola's Automotive and Industrial
Electronics Group (new automotive supplier customer); a raw
materials manufacturer supplying the automotive industry
(first raw materials supplier customer); an unnamed financial
industry customer (fourth compact supercomputer customer in
financial industry ); British Gas' Gas Research Centre,
Loughborough, England; the Japanese Ministry of International
Trade and Industry, Osaka National Research Institute
(Japanese public sector business); and CNET, the research
division of France-Telecom (new telecommunications
customer). 

The academic sector provided almost one-third of the fourth-
quarter orders for low-priced systems, including Cray's first
order from a hospital -- Georgetown University Medical Center,
Washington, D.C. (for Imaging Science and Information Systems
Center, Radiology Department).  Other new university
customers added in the fourth quarter were:  Harvard
University, Cambridge, Mass.; Stanford University, Palo Alto,
Calif.; Cranfield University, Bedford, England; the University
Blaise Pascal, Clermont-Ferrand, France; and two German
universities -- the University of Konstanz and the University
of Braunschweig.  Existing customer the University of Texas
also ordered a compact supercomputer (chemistry education). 

Cray's low-priced products are multi-user systems designed to
operate as powerful servers for a broad range of scientific-
technical and commercial applications.  These systems are
designed for problems that may overwhelm the capabilities of
workstations, business mainframes and other systems on the
market today.   

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

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