----------------------------------------------------------------- STACKER NOTE STACKER NOTE IBM ANNOUNCES STACKER LICENSE STAC FAX 1116 (04-08-1994) ----------------------------------------------------------------- April 6, 1994 IBM Wednesday announced a worldwide agreement to license Stac Electronics' patented Stacker(a) LZS(a) data compression technology for all IBM software including PC DOS and OS/2. IBM plans to provide Stacker data compression technology in future versions of PC DOS. "Data compression technology has become important to computer users because it maximizes valuable hard disk space," said Lee Reiswig, president of IBM's Personal Software Products division. "We recognize that data compression is important to our customers. Stac and IBM are committed to providing an industry- leading compression solution that is both stable and reliable." Stac's President and CEO Gary Clow said, "IBM's licensing of the Stacker LZS technology reinforces Stac's status as the supplier of the premier data compression technology across multiple platforms. With this agreement, we expect to gain even greater acceptance in both the corporate and home markets." Product Background Stacker data compression technology, now in its fourth generation, is the first product of its kind to break the 2:1 compression barrier. Beyond increasing storage capacity, Stacker 4.0 provides new safety features for enhanced reliability and a comprehensive tool set for using Stacker and managing Stacker drives. Stac's OS/2 compression technology is a leading real- time data compression product available for OS/2-based PCs. For PC DOS and OS/2, Stacker provides instant conversion of other compression formats, allowing users to easily update their disks to the proven Stacker format. PC DOS is IBM's full-featured, enhanced version of the Disk Operating System. In addition to compression, PC DOS includes exclusive features such as PCMCIA support, PenDOS(b) enabling for pen-based computing, memory optimizer, file backup/retrieval, program scheduler and virus protection.OS/2 is IBM's award- winning 32-bit operating system software that provides high- performance pre-emptive multitasking and multithreading capabilities. Stac Electronics (NASDAQ: STAC), based in Carlsbad, California, is a leading supplier of high performance data compression products for personal computers. Stac's products, implemented in software and silicon, are sold directly by the company and through retail and OEM sales distribution channels worldwide. IBM's Personal Software Products division, headquartered in Austin, Texas, is an industry leader in the development of operating systems, including OS/2 and PC DOS, as well as networking software and other advanced technologies. (a) Indicates trademark or registered trademark of Stac Electronics. (b) Indicates trademark or registered trademark of the International Business Machines Corporation. ----------------------------------------------------------------- Copyright 1994 Stac Electronics