Cyrix Reports Third Quarter Results

Richardson, Texas -- October 17, 1996 -- Cyrix Corp. (NASDAQ: CYRX), a leading supplier of high-performance processors, today reported revenues for the quarter ended September 30, 1996 of $33.1 million, up from the prior quarter revenues of $27.1 million and down 38 percent from the $53.6 million reported in the same period last year. The Company recorded a net loss of $6.9 million for the quarter ended September 30, 1996 or a loss per share of $0.36, compared with net income of $.6 million or an earnings per share of $0.03 for the same period last year.

Revenues for the first nine months of 1996 were $111.8 million, down from $189 million in the same period last year. The Company recorded a net loss of $21.4 million or $1.11 per share in the first nine months of 1996, compared with net income of $25.5 million or $1.28 per share in the prior nine months of 1995.

During the third quarter, the last of the Intel litigation was finally concluded. Intel had until July to file an appeal of the Federal Circuit Court of Appeal’s March 5, 1996 opinion that IBM and SGS-Thomson using its "have made" rights were licensed by Intel to make microprocessors for Cyrix. Intel did not file an appeal and, as a result, under the earlier Intel settlement agreement paid Cyrix $2 million. Also, on September 26, 1996, the U.S. District Court in Dallas entered a judgment dismissing the securities class action lawsuit against Cyrix and certain of its officers. The plaintiffs did not file an appeal and the decision is now final.

"We made good progress in the third quarter in winning new customers and putting several legal matters behind us," said Jerry Rogers, Cyrix president and chief executive officer. "Going forward, we will continue to enhance the value proposition of the 6x86™ product line while controlling our operating expenses," Rogers said.

Cyrix Corporation
Cyrix Corporation, (http://www.cyrix.com), headquartered in Richardson, Texas, is a leading supplier of high-performance processors and systems to the personal computer industry. Founded in 1988, the company designs, manufactures and markets innovative x86 software-compatible processors for the desktop and mobile computer markets. The Cyrix 6x86 processor was recently recognized for its performance with awards from a number of publications, including Byte Magazine’s Best Technology at CeBIT’96, PC Week’s Corporate IT Excellence Award and Windows Sources’ Stellar Award.

Any forward-looking statements in the above release involve risks and uncertainties which could cause actual results to differ from the present anticipated results. These risks and uncertainties include but are not limited to the following: market demand and acceptance of our microprocessor products; the impact of changing economic conditions; product introductions; the verification of our microprocessor’s compatibility with industry-standard hardware and software; the maintenance of sufficient cash flow, reliance on third-parties, the impact of market peers and their products as well as risks concerning future technology and others detailed in the Company’s Securities and Exchange Commission filings. These filings can be obtained by contacting Cyrix Investor Relations.