UNIRED II is the high performance inference processor for the parallel inference machine PIE64. It is designed for the committed choice language Fleng, and for use as an element processor of parallel machines. Its main features are: 1) a tag architecture, 2) three independent memory buses (instruction fetching, data reading, and data writing), 3) a dedicated instruction set for efficient execution of Fleng, 4) multi-context processing for reducing pipeline interlocking and overhead of interprocessor synchronization. With the multi-context processing mechanism, the internal pipeline is shared by several independent instruction streams (contexts), and which contexts are to be executed is determined cycle by cycle. So, UNIRED II acts as a shared-pipeline MIMD processor. In this paper, several architectural features including the multi-context processing and the instruction set are described. Performance measurement results by simulation are also presented. On a 10MHz UNIRED II, 920K Reduction Per Second has been achieved, and it is shown that the multi-context processing mechanism is very effective for improved performance.