NEXGEN SIGNS MULTI-YEAR MANUFACTURING AGREEMENT WITH IBM

MILPITAS, California, June 7, 1994 - NexGen, a leader in high performance
x86 processors, has signed a multi-year agreement with IBM, one of the
world's leading semiconductor silicon, packaging and manufacturing
suppliers, whereby IBM will manufacture and sell the NexGen Nx586
processor and the Nx587 floating point coprocessor to NexGen. According to
the agreement, IBM will be NexGen's manufacturing supplier producing a
fully tested and packaged ASIC product.

"We are very pleased to enter this long-term supplier relationship with IBM
Microelectronics Division. We have been working closely with IBM for
nearly two years to prepare the Nx586 family of processors for volume
production," said Atiq Raza, President and Chief Executive Officer of
NexGen. "The IBM/NexGen relationship marries innovative processor design
with state-of-the-art semiconductor process technology, manufacturing
technology, and quality. PC OEMs and end-users now have a 586-class
processor alternative for the highest levels of performance."

"IBM has world-class process technology, and this agreement shows that we
are willing to make that technology available," said Luis Arzubi, Vice
President of Memory, Micros and ASIC Subsystems, IBM Microelectronics
Division. "This further demonstrates our commitment to becoming a major
player in the semiconductor merchant market business."

The Nx586 family of processors are the first to combine 586-class
performance with x86 binary software compatibility at a significantly more
affordable level than Intel's Pentium processor. NexGen's processors
combine the five key performance elements also found in Pentium (5th
generation x86 processors) plus three major advances including NexGen's
patented RISC86 microarchitecture. These capabilities allow NexGen
products to offer the best combination of price/performance today, and
significantly higher performance in the future.

The Nx586 and Nx587 processors will be manufactured using IBM's CMOS 5L
process consisting of 0.5 micron CMOS silicon technology, up to 5 layers
of metal interconnect, and 8-inch silicon wafers. This is one of the most
advanced volume production processes available in the industry. In
addition, IBM's C4 "flip-chip" packaging technology will be used in the
manufacture of NexGen products whereby the silicon die is attached via
solder bumps within the die, resulting in high reliability and low cost.

NexGen, Inc., founded in 1986, develops and utilizes industry-leading
processor technologies to deliver high performance x86 processors to
mainstream PC users. The Milpitas, California-based company currently
holds many patents for its leading-edge x86 processor technology and has
several more patents in process. NexGen is funded by several blue chip
technology investors including Kleiner, Perkins, Caufield and Byers, ASCII
Corporation, Compaq Computer Corporation, Olivetti Corporation,
PaineWebber Inc., and Harvard Management Company. For product information,
call 1-8008NEXGEN (1-800-863-9436) or 408-435-0202.

Para Systems Inc
PO Box 815188
Dallas, TX 75381-5188

1455 LeMay Dr
Carrollton, TX 75007
215-446-7363,  fax 214-446-9011

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