June 25, 1997

ROSS Technology and Fujitsu in 64-Bit CPU Development Pact

AUSTIN, Texas, June 25, 1997 -- ROSS Technology, Inc. (Nasdaq:RTEC), based here, today announced it has entered into a development agreement with Fujitsu Limited related to its 64-bit SPARCÔ microprocessor effort, code named "Viper." Under terms of the agreement, Fujitsu Limited provides $34.5 million in non-recurring engineering funding and the companies will jointly own or exchange certain intellectual property. The agreement is in place through April 1999, and includes a tape-out target date of March 31, 1998 for the "Viper" microprocessor design. "Fujitsus decision to join in support of our next-generation development effort is an acknowledgment of ROSS Technologys expertise in microprocessor design," said Jack W. Simpson, Sr., president and chief executive officer of ROSS Technology. "This development partnership enables ROSS to defray current operating costs, while ensuring the companys continued ability to develop superior technology to address future market opportunities. Viper denotes an UltraSPARC-compatible, next-generation 64-bit processor design, which holds the key to future success in the larger SPARC market for ROSS, our business partners and our customers ."

According to company officials, ROSS in 1995 embarked on a two-pronged market strategy: to fulfill end-user requirements for higher-performing 32-bit SPARC microprocessors using legacy applications on either Solaris® or SunOS® operating systems, both by offering upgrade kits for SPARCstation 5, 10 and 20 systems and by producing its own line of 32-bit workstations and servers; and to introduce a 64-bit SPARC microprocessor family timed to the broad market availability of 64-bit applications. "ROSS continues to offer current 32-bit Sun customers, who are running their businesses on legacy applications, an upgrade capability to 200 MHz performance, in single to quad-processor configurations, providing big performance gains while preserving their software investment and reducing the risks of a premature migration to 64-bit technology," said Simpson. The company anticipates significant market demand for 64-bit SPARC CPUs, and believes its "Viper" microprocessors will offer both upgrades and new system capability that will be attractive to its customers. According to company officials, Fujitsus funding of the Viper development project is tied to delivery of specific deliverables under the agreement, and is subject to reduction or cancellation in the event certain schedule milestones are not met.

ROSS Overview: ROSS Technology, founded in 1988, is a majority-owned subsidiary of Fujitsu Limited. A minority position in ROSS is held by Sun Microsystems, Inc. As of March 31, 1997, the companys outstanding common stock was held 60 percent by Fujitsu, 5 percent by Sun, and 35 percent by employees and the public. The company's objective is to produce extremely high SPARC performance in a very compact space, leading the industry in delivering the most SPARC computing power per cubic inch. ROSS is one of the industry's most prominent suppliers of SPARC microprocessors and SPARC system products to both the OEM and end-user markets.