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Luxembourg, January 11, 2006 – Stratus Technologies International, S.à r.l., a global provider of fault-tolerant computer servers, technologies and services, today reported its financial results for the third quarter and nine months ended November 27, 2005.

For the third quarter ended Nov. 27, 2005, total revenue was $63.8 million, a decrease of $4.4 million or six percent compared to the $68.2 million attained in the same period last year. Profit from operations was $6.8 million compared to $6.5 million for the same period last year. For the third quarter, net loss was $0.6 million compared to a net income of $1.2 million for the same period last year. Included in the third quarter net loss for fiscal 2006 was a non-cash loss of $1.0 million representing the change in the fair value of the embedded derivatives in the Senior Notes as required by FAS 133. Also included in the third quarter loss was a $1.3 million loss due to the repurchase and retirement of $15.0 million of the $170.0 million Senior Notes due Dec. 1, 2008. The loss consisted of a $0.5 million cash premium and a $0.8 million non-cash charge. As a result of the continued strengthening of the U.S. dollar, the third quarter net loss includes net foreign currency transaction losses of $0.1 million compared to a gain of $1.2 million for the same period last year.

The Company reported EBITDA (inclusive of the aforementioned items), a non-GAAP financial measure, of $9.8 million compared to $12.6 million for the same period last year. Please refer to the reconciliation of EBITDA to GAAP financial measures in the attached "Consolidated Condensed Statement of Earnings."

For the nine months ended Nov. 27, 2005, total revenue was $194.4 million compared to $205.2 million for the same period last year, a decrease of five percent. Profit from operations for the period was $20.8 million compared to a profit of $13.0 million, for the same period last year. Net income for the period was $2.5 million compared to a net loss of $4.6 million, for the same period last year. EBITDA for the nine month period was $36.0 million compared to EBITDA of $30.7 million, for the same period last year.

Subsequent to the third quarter end, the Company repurchased an additional $5.1 million aggregate principal amount of its $155.0 million, 10.375 percent outstanding Senior Notes due Dec. 1, 2008.

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Q3 FY 06 Statement of Earnings
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  Q3 FY 06 Balance Sheet

Third Quarter Results Conference Call
A conference call to review third quarter financial results will be held today at 1:30 p.m. Eastern Time and may be accessed by calling 800-322-0079 (U.S. only) or 973-409-9258. Live listen-only access to the conference call will be available from the Stratus Web site at www.stratus.com.

About Stratus Technologies
Stratus Technologies is a global solutions provider focused exclusively on helping its customers achieve and sustain the availability of information systems that support their critical business processes. Based upon its 25 years of expertise in server and services technology for continuous availability, Stratus is a trusted solutions provider to customers in telecommunications, financial services, banking, manufacturing, life sciences, public safety, transportation & logistics, and other industries.

Forward-Looking Statements: This press release may contain forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). You are cautioned that such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could cause actual results to differ materially from those described in such forward-looking statements. Such risks and uncertainties include, but are not limited to, the continued acceptance of our products by the market; our ability to enter into new service agreements and to retain customers under existing service contracts; our ability to source quality components and key technologies without interruption and at acceptable prices; our reliance on sole-source manufacturers and suppliers; the presence of existing competitors and the emergence of new competitors; our financial condition and liquidity and our leverage and debt service obligations; economic conditions globally and in our most important markets; developments in the fault-tolerant and high-availability server markets; claims by third parties that we infringe upon their intellectual property rights; our success in adequately protecting our intellectual property rights; our success in maintaining efficient manufacturing and logistics operations; our ability to recruit, retain and develop appropriately skilled employees; exposure for systems and service failures; fluctuations in exchange rates; current risks of terrorist activity and acts of war; and the impact of changes in policies, laws, regulations or practices of foreign governments on our international operations. Any forward-looking statements in this press release are made as of the date hereof, and Stratus undertakes no duty to further update such forward-looking statements.



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