IBM ANNOUNCES PRICING AND AVAILABILITY FOR THE POWERPC 603, UPDATES PRICING
FOR THE POWERPC 601

FISHKILL, N.Y., June 27, 1994--IBM Corp. today announced pricing and
availability for the PowerPC 603, the highest performing microprocessor
specifically designed for mobile and energy conscious applications. In
addition, lower pricing for the PowerPC 601 is also being announced. With
this pricing, PowerPC microprocessors continue to deliver twice the
performance of comparably priced industry-standard microprocessors.

The PowerPC 603 pricing removes the premium that system manufacturers have
paid for a high-performance microprocessor in mobile and energy-conscious
applications. The PowerPC 603 is marketed at applications where energy
conservation is crucial. The PowerPC 601 is marketed at desktop
applications where higher performance is necessary. System manufacturers
can now select either offering depending on their design objectives.

"The combination of high performance and low power consumption makes the
PowerPC 603 ideal for the fastest growing segment of the personal computer
industry, portables and energy-sensitive devices. In addition, our new
pricing for the PowerPC 601 continues to extend the price/performance
advantages of the PowerPC microprocessor family," said Fred Sporck,
director of PowerPC products for IBM Microelectronics Division.

The PowerPC microprocessor family delivers performance that enables a new
generation of applications and enhances existing applications for personal
computers. The PowerPC 603 uses just 3 watts of power and delivers an
estimated SPECint 92 performance rating of 75 and SPECfp 92 rating of 85
with a secondary cache. This floating point performance is important for
improving the audio, graphical, communications and human interface
capabilities of personal computers.

The PowerPC 603 also offers industry-leading power/performance. It uses a
3.3-volt design with three user-programmable power saving modes: nap, doze
and sleep. These modes progressively reduce the power usage of the
microprocessor and automatically turn functional units on and off as
needed while maintaining performance.

The 66 MHz and 80 MHz versions of the PowerPC 603 are available now in
sample quantities from IBM Microelectronics. Volume production is expected
in third quarter of 1994. Pricing in quantities of 25,000 units is $165
for the 66 MHz version and $195 for the 80 MHz version.

The PowerPC 601 microprocessor is now shipping in volume in 50 MHz, 66 MHz
and 80 MHz versions. Pricing in quantities of 25,000 units is $174 for the
50 MHz version, $197 for the 66 MHz version and $275 for the 80 MHz
version.

The PowerPC 601 and PowerPC 603 microprocessors are the first two PowerPC
microprocessors that IBM and Motorola are providing to the industry. Other
members of the PowerPC family include the PowerPC 604 and PowerPC 620
microprocessors. The PowerPC 604 will be marketed at high-end desktop
systems, midrange servers and high-performance graphics workstations. The
PowerPC 620 will be marketed at high-performance servers and
workstations.

PowerPC microprocessors will run applications for Apple's System/7 and
IBM's AIX, as well as DOS, Solaris, Taligent, Windows, Windows NT and OS/2
for PowerPC.

Companies developing PowerPC systems and subsystems include: Canon, DayStar
Digital, Groupe Bull, Harris, Hitachi, IBM's Power Personal Systems
Division, Parsytec, Powerhouse, Tadpole, Thomson-CSF and YARC. In
addition, the Taiwanese New PC Consortium has announced its endorsement of
the PowerPC architecture and China's Ministry of Electronics Industry has
agreed to help promote the use of PowerPC technology and promote the
development of supporting software in China.

IBM, headquartered in Armonk, N.Y., is a supplier of integrated
microelectronics technologies to a growing number of companies worldwide.
Its products range from semiconductor design and fabrication to complete
the fully tested functional assemblies. IBM Microelectronics,
headquartered in Fishkill, N.Y., is responsible for developing,
manufacturing and marketing these products and technologies.

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