Encore Computer Corp has decided to concentrate all its resources on its multiprocessor Unix machines, and has agreed to sell its Annex II terminal server business to Xylogics Inc, Burlington, Massachusetts. Introduced in the spring, the Annex II is an NS32016-based processor with the Intel 82586 Ethernet controller, supporting 16 or 32 ports and as many as 256 concurrent sessions (CI No 933). It was originally developed to front-end Encore’s Multimax multiprocessors, and under the agreement in principle with Xylogics, the Marlborough, Massachusetts company gets the right to take Annex IIs on favourable OEM terms. Xylogics agrees to pay $4m for all rights, the name, the technology, and the inventory, of Annex II, and will take on all engineering and manufacturing staff working on the product. As well as supplying Encore, Xylogics will market the product to other OEM customers as the Xylogics Annex II terminal server; there is the prospect of repeat business from Gould Computer Systems, which signed a $4m five-year OEM agreement with Encore for the first generation Annex for use in the Gould Powernode Unix family (CI No 750).