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      STACKER NOTE                                         STACKER NOTE
                   MICROSOFT & STAC SETTLE PATENT DISPUTE
       Deal marks new era of cooperation;Includes equity investment in
                              Stac by Microsoft
      STAC FAX  1122 (06-21-1994)
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      Redmond, Washington, June 21st 1994 -  Microsoft Corporation and
      Stac Electronics announced today that they have signed a broad
      cross license agreement to end their disk compression patent
      dispute.  The agreement also includes an equity investment in
      Stac by Microsoft to provide a framework for future cooperation
      between the companies.
      
           Under the agreement, Microsoft and Stac will cross license
      all of their existing disk compression patents, as well as any
      future disk compression patents that either company receives over
      the next five years.  In addition, Stac will receive a license to
      Microsoft's preload technology in MS-DOS 6 and Microsoft will
      receive the right to license, for a royalty, all of Stac's
      existing patents unrelated to disk compression, as well as any
      new patents that Stac receives over the next five years.
      
           "Together we resolved this dispute so we could end the
      inconvenience the recent judgment has caused customers
      worldwide," commented Paul Maritz, senior vice president, systems
      division.  "This agreement means our customers, resellers and
      OEM's worldwide can sell and use all versions of MS-DOS without
      concern."
      
           Said Gary Clow, chairman and CEO of Stac Electronics,
      "Today's agreement immediately ends our conflict with Microsoft
      and ushers in a new era of cooperation between the two companies.
      Having Microsoft as our ally will help us with new business
      opportunities and be a far better situation for our company.  It
      puts and end to our burdensome legal fees, creates a royalty
      stream, puts money in the bank and, most importantly, aligns
      Microsoft's interests with the interests of Stac."
      
           The agreement calls for Microsoft to pay Stac license
      royalties of $1 million per month for a period of 43 months.
      Microsoft will also purchase $39.9 million of 4.0% non-voting
      convertible preferred stock which matures in the year 2004.  The
      preferred stock has a conversion price of $9.00 per share and is
      convertible into a total of 4.44 million common shares.
      
           "We look forward to working with Stac as a technology and
      business partner.  Stac has invited us to attend their board
      meetings and we intend to identify areas for possible future
      cooperation," commented Greg Maffei, Microsoft's treasurer.  "As
      an equity investor in Stac, we have an economic incentive to seek
      opportunities that can enhance their business."
      
           Founded in 1975, Microsoft (Nasdaq "MFST") 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.
      
           Stac Electronics (Nasdaq "STAC") is a leading supplier of
      high-performance data compression products for personal
      computers.Implemented in software and silicon, Stac's products
      are sold direct from the company and through retail and OEM sales
      distribution channels worldwide.
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      Copyright 1994 Stac Electronics
