MEMORY PRICE HIKES RESULTING FROM WEAKENED DOLLAR NOT AS SEVERE FOR SIMPLE
TECHNOLOGY, INC.

Price Increases Only Half That Of Most Other Third Party Memory Vendors

SANTA ANA, California (May 1, 1995)--At a time when the weakened dollar is
forcing most third-party memory manufacturers to forecast sharp price
increases of up to twenty percent (20%), Simple Technology, Inc., is
finding that its purchasing strategies and vendor relationships are paying
off. Not immune from the increases, Simple Technology expects to raise
prices up to ten percent (10%) over the next few months. However, this is
only about half the increase of most other third-party memory vendors.

In the past month, third-party memory manufacturers have already seen price
increases from major chip suppliers such as Hitachi Ltd., NEC Corp., and
Toshiba Corp. However, most of the third-party memory vendors purchase up
to seventy percent (70%) of their DRAM (dynamic random access memory) from
the broker market, not from the major chip suppliers. The broker market
prices are generally twenty percent (20%) higher.

"Simple Technology has made it a priority over the years to develop strong
supplier relationships," stated Manouch Moshayedi, CEO of Simple
Technology. "We know that the market is volatile, and the broker market
even more so. We don't want to be susceptible to the wild fluctuations in
the broker market, and we want our customers to be able to rely on a
constant supply of memory at a reasonable price."

Compared with other memory vendors, Simple Technology purchases less than
fifteen percent (15%) of their DRAM from the broker market. These
purchases are made only to offset temporary shortages in their main supply
or in times of short term increased demand.

"We've already been preparing for increased production that will be
necessary to meet the surge in demand when Windows 95 reaches the market,"
Moshayedi commented. "With an already restricted supply of DRAM worldwide,
we knew we would have to be ready long before the actual release date. So,
we began formulating a purchasing strategy and working on strenghtening
supplier relationships and allocation. This may be why we are in a
stronger inventory and pricing position than most other memory
manufacturers during this current situation."

When Windows 95 is released this fall the industry is again expected to
realize shortages and price increases. Most computer systems are shipped
with only 4 or 8MB of memory. Although Windows 95 can run on 4MB, most
industry experts say at least 8MB is necessary. And for high-performance,
memory-intensive applications running with Windows 95, optimum performance
is achieved with 16MB, or even as much as 32MB of memory.

The building of new semiconductor plants over the next few years by some of
the major DRAM manufacturers is expected to ease some of the chip
shortages. However, the surge in memory demand caused by Windows 95,
coupled with more anticipated increases because of the weakened dollar, is
sure to continue to affect the market in the short term.

Founded in 1990, Simple Technology, Inc. is a worldwide leader in memory
upgrades and PCMCIA products. Simple Technology manufactures over 1000
separate memory products for desktop computers, laptops, notebooks, PDAs,
printers and workstations. PCMCIA products include data/fax and voice
data/fax modems, SCSI and Ethernet adapters, and PC Card hard drives.
Simple Technology designs and manufactures all of its products at its
Santa Ana, California facility.

Simple Technology Inc
3001 Daimler St
Santa Ana, CA 92705
714-476-1180,   fax 714-476-1209

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