Mercury Computer Systems Announces Collaboration with NTT-AT for a Cell BE Processor-Based Solution for AVC/H.264 Codec

Companies to jointly develop an advanced image encoding engine; initial results show 10X acceleration in vector processing over currently available solutions

LAS VEGAS -- April 17, 2007 -- Mercury Computer Systems, Inc. (NASDAQ: MRCY) announced its collaboration with NTT Advanced Technology Corporation (NTT-AT) to develop an image encoding engine based on the Cell Broadband Engine(TM) (BE) processor, at NAB2007, April 16-19 at the Las Vegas Convention Center in Las Vegas, Nevada. The engine is designed for AVC/H.264 (Advanced Video Coding), a codec standard suitable for archiving of high- definition (HD) images, with more than twice the compression capability of MPEG-2.

"Implementation of AVC/H.264 requires an enormous amount of calculation, where more than 50 percent of the calculations are vector mathematics," said Hiroshi Fuju, Associate Vice President, Video Systems Business Unit, NTT-AT. "Based on this observation, we chose to adopt a hybrid processor approach for AVC/H.264 image codec processing, where the vector processing portion will be handled by Mercury Computer Systems' Cell Accelerator Board (CAB), and the scalar processing portion will be handled by a PC with Intel(R) x86 architecture CPU. This architecture provides a flexible, software-based approach for customers to create new variations or customizations of their AVC/H.264 codecs."

Initial performance results show that the vector processing can be accelerated by more than an order of magnitude compared to existing solutions. NTT-AT plans to develop and sell image encoding system products based on this hybrid architecture.

The image encoding system is expected to enable broadcast stations and post production companies to perform high-speed, high-quality encoding of large volumes of HD images while substantially lowering the overall archiving cost.

"We're pleased to work with NTT-AT in developing an innovative solution that combines the outstanding processing power of the Mercury Cell Accelerator Board with NTT-AT's optimized encoding software," said Mark Skalabrin, Vice President and General Manager of Mercury's Advanced Solutions business. "Accelerating performance and providing a software-based model for the AVC/H.264 codec is a prime example of Mercury's unique competitive advantage for these types of applications."

The target for development completion is December 2007. For more information on the AVC/H.264 image encoding system, visit Mercury in Booth #C10246 and NTT-AT in Booth #SU10220 at NAB2007, April 16-19 at the Las Vegas Convention Center in Las Vegas, NV. For more information on Mercury's multimedia, video and imaging offerings, contact Mercury at (866) 627-6951, or visit www.mc.com/video.

About NTT-AT
NTT Advanced Technology Corporation (NTT-AT) as a subsidiary of NTT, the largest telecommunications service provider in Japan, offers high quality technology solutions in information and communication to enterprises around the world. NTT-AT is developing products that employ video/audio processing technologies to realize high-quality communications.

Mercury Computer Systems, Inc. - Where Challenges Drive Innovation
Mercury Computer Systems is the leading provider of computing systems and software for data-intensive applications that include image processing, signal processing, and visualization. With a strong commitment to innovation, our expertise in algorithm optimization, systems development, and silicon design is blended with software application knowledge and industry-standard technologies to solve unique computing challenges. We work closely with our customers to architect solutions that have a meaningful impact on everyday life: detecting aneurysms; designing safer, more fuel-efficient aircraft; identifying security threats; discovering oil; developing new drugs; and visualizing virtually every aspect of scientific investigation.

Mercury's comprehensive, purpose-built solutions capture, process, and present data for the world's largest medical imaging companies, 8 of the 10 top defense prime contractors, and other leading Fortune 500 and mid-market companies in semiconductor, energy, telecommunications, and other industries. Our dedication to performance excellence and collaborative innovation continues a 24-year history in enabling customers to stay at the forefront of the markets they serve.

Mercury is based in Chelmsford, Massachusetts and serves customers worldwide through a broad network of direct sales offices, subsidiaries, and distributors. We are listed on the Nasdaq National Market (NASDAQ: MRCY). Visit Mercury at www.mc.com.