A cache controller (10) which sits in parallel with a microprocessor bus (14, 15, 29) so as not to impede system response in the event of a cache miss. The cache controller tagram (24) is configured into a two ways, each way including tag and valid-bit storage for associatively searching the directory for cache data-array addresses. The external cache memory (8) is organized such that both ways are simultaneously available to a number of available memory modules in the system to thereby allow the way access time to occur in parallel with the tag lookup.