TeraForce Listed in Standard & Poor's Corporation Records

Business Wire, July 6, 2004

RICHARDSON, Texas -- -TeraForce Technology Corporation (OTCBB: TERA) today announced that the Editorial Board of Standard and Poor's ("S&P") has approved TeraForce for a complete corporate listing and description in Standard and Poor's Corporation Records. Additionally, TeraForce will have its corporate description published in Standard and Poor's Daily News Section. S&P will also initiate financial coverage of TeraForce as part of the S&P Market Access Program, including coverage of TeraForce on S&P's Internet website, www.advisorinsight.com and S&P Marketscope and the electronic version of the S&P Stock Guide database. Additionally, the S&P coverage will appear on the highly trafficked OTC Bulletin Board web site www.otcbb.com.

Standard Corporation Records is a recognized securities manual for the "Blue Sky" Standard Manual Exemption for secondary trading in more than 37 states. The TeraForce listing in Standard and Poor's Corporation Records will assist the brokerage and investment communities in making a market for TeraForce stock. It is recommended that brokers check with their compliance officers or legal counsel for applicable "Blue Sky" laws and regulations pertaining to them.

About TeraForce Technology Corporation

Based in Richardson, Texas, TeraForce Technology Corporation (OTCBB: TERA) designs, develops, produces and sells high-density embedded computing platforms and digital signal processing products, primarily for applications in the defense electronics industry. TeraForce's primary operating unit is DNA Computing Solutions, Inc.

Except for the historical information contained herein, the statements in this announcement are forward looking statements which involve risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, the forward looking statements. Factors that might cause such a difference include, but are not limited to, those relating to: general economic conditions in the markets in which the Company operates; success in the development and market acceptance of new and existing products; dependence on suppliers, third party manufacturers and channels of distribution; contingent liabilities; customer and product concentration; fluctuations in customer demand; maintaining access to external sources of capital; ability to attract and retain key management and technical personnel; issues regarding intellectual property rights; overall management of the Company's expansion; and other risk factors detailed from time to time in the Company's filings with the Securities and Exchange Commission.