MICROSOFT, TANDEM FORM ALLIANCE TO DEVELOP "NONSTOP" BUSINESS-CRITICAL
CAPABILITIES ON WINDOWS NT SERVER

Tandem's NonStop Solutions for Windows NT Server to Enhance
Business-Critical Capabilities of the Windows NT Platform

SAN FRANCISCO - MAY 7, 1996 - Microsoft Corp. and Tandem Computers Inc.
today announced a strategic alliance that will further accelerate the
adoption of the Microsoft Windows NT Server network operating system by
customers of business-critical servers.

Under terms of the agreement, Tandem will extend its proven middleware
products, called the NonStop ServerWare Solutions, to the Microsoft
Windows NT Server platform and will participate in the Designed for
Microsoft BackOffice program. Tandem's middleware products support
applications that companies need to compete in a business world that runs
24 hours a day.

The agreement, which calls for cross-licensing of technology, provides
Microsoft and Tandem customers with best-of-breed business-critical
solutions, coupled with the cost-effective, scalable, client-server
technology of Windows NT Server.

Tandem's cluster-enabled solutions manage more than 90 percent of the
world's securities transactions, 66 percent of the credit-card
transactions and 80 percent of all automated teller machine transactions
and are used by all of the 35 largest telecommunications companies.

Tandem will continue to develop and support its open, parallel Himalaya
servers, which deliver the highest levels of availability and scalability.
The NonStop ServerWare Solutions will also be supported on Himalaya
servers.

As part of the agreement, Tandem will extend its entire business- critical
infrastructure to the Windows NT Server environment, including access to
its global network of partners and independent software vendors (ISVs),
and full services and support.

"With more than 22 years of experience, Tandem is the widely regarded
leader in business-critical computing," said Steve Ballmer, executive vice
president of Microsoft. "The largest companies in the world rely on
Tandem's NonStop solutions for true seven-day-a-week, 24-hour-a-day
availability and scalability. By extending its technology and expertise to
Microsoft Windows NT Server, enterprise customers can now enjoy the value
of business-critical capabilities combined with the cost-effectiveness of
WindowsR- based PCs ."

"Microsoft and Tandem are taking 'expensive' and 'proprietary' out of the
enterprise customer equation," said Roel Pieper, CEO of Tandem. "Windows
NT Server has gained tremendous demand as a powerful, cost-effective
platform that links seamlessly with millions of PCs and tens of thousands
of Windows-based applications. More and more businesses are realizing they
need to be able to scale up efficiently to higher levels of fast, reliable
data access. Windows NT Server and Tandem's fault-tolerant NonStop
technology are giving customers that kind of cost-effective, scalable
business-critical capability."

JOINT CLUSTERING TECHNOLOGY DEVELOPMENT INCLUDED

Tandem, one of the core clustering partners, will work with Microsoft as a
leading contributor to Microsoft's development of a clustering product
code-named "Wolfpack." When the first phase of Wolfpack" is delivered,
scheduled for early 1997, customers will be able to use a variety of
hardware platforms to build high-availability Windows NT Server-based
clusters that allow a paired server to fail over to another server or
application. Tandem NonStop ServerWare Solutions for Windows NT Server
will provide business-critical capabilities on top of the "Wolfpack"
platform.

This agreement establishes Tandem's ongoing work and continuing
participation with Microsoft and other Windows NT Server-based clustering
leaders to establish a common specification for high-availability,
high-performance clustered Windows NT Server-based computing.

The agreement includes support for Tandem's ServerNet drivers. The
ServerNet technology provides a high-performance interconnect for the
Windows NT Server-based clustering environment.

NONSTOP SERVERWARE SOLUTIONS TO ENABLE BUSINESS-CRITICAL APPLICATIONS

Tandem's NonStop ServerWare Family for Windows NT Server will include
Tandem's parallel, scalable SQL database; Tandem's clustered
transaction-processing environment supporting the TUXEDOR and CICS
transactional APIs; and Tandem's distributed-messaging and
object-management environment.

Tandem's NonStop ServerWare technology will enable users of Windows NT
Server on any hardware platform to take advantage of Tandem's ISV
portfolio of more than 1,000 business-critical solutions. Such
applications include online transaction processing, electronic commerce,
Internet and World Wide Web, data warehousing, decision support, online
analytic processing and customer solutions within the finance,
telecommunications, retail, health-care and transport markets.

Tandem continues to work with its partners and ISVs to expand their
opportunities for Windows NT Server. Also, Tandem and Microsoft will
cooperate to create Windows NT Server-based developer programs targeted
for ISVs. Further, to help provide customers with investment protection
and support, Tandem will train 25 percent of its technical sales staff to
become Microsoft Certified Systems Engineers by September 1996.

Founded in 1975, Microsoft (NASDAQ "MSFT") is the worldwide leader in
software for personal computers. The company offers a wide range of
products and services for business and personal use, each designed with
the mission of making it easier and more enjoyable for people to take
advantage of the full power of personal computing every day.

Founded in 1974, Tandem Computers Inc. (NYSE: TDM) designs and delivers
technology solutions that companies rely on to compete in a business world
that runs 24 hours a day. A US$2.2 billion company headquartered in
Cupertino, Calif., Tandem has offices, strategic partners, and providers
in more than 50 countries.

If you are interested in viewing information about Tandem, please visit the
Tandem home page at HTTP://WWW.TANDEM.COM/. To receive information via
fax, call (800) 863-6329 in the United States and Canada or +1 (408)
285-8611 in other countries. To request information via e-mail,send a
message to info@tandem.com.
 
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