Re: SGI Forms Separate Unit for Cray Business

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: : MOUNTAIN VIEW, Calif., Aug. 10 /PRNewswire/ -- SGI (NYSE: : : SGI) today announced it has formed a : : separate business unit to lead development, marketing, sales : : and service for the company's Cray(R) : : vector supercomputers. SGI said it is in active discussions : : with other companies to assume the : : operation of the Cray business through a partnership or : : other transaction. : : The Cray business unit, based in Chippewa Falls, Wis. and : : Eagan, Minn., will be responsible for the : : Cray T90(TM), the new Cray SV1(TM) and the next-generation : : Cray SV2(TM) vector supercomputer : : products, along with the Cray T3E(TM) scalable parallel : : system. In the latest (June 1999) independent : : ranking of the "World's Top 500 Supercomputer Sites," Cray : : systems accounted for five of the top 10, : : and 26 of the top 50 supercomputers in the world. : : "The Cray business focuses on serving the special : : requirements of vector supercomputing customers," : : said Rick Belluzzo, chairman and CEO. "This is an important : : business that is complementary to SGI's : : scalable server business, but the vector market has its own : : distinct product cycles, application : : partners and sales and service model. We have decided that : : pursuing these agendas separately but in : : coordination creates the best opportunity for the success of : : both businesses. We will continue to have : : a close relationship with the business since the forthcoming : : Cray SV2 product line will be built in : : conjunction with SGI's next-generation SN server platform : : technology. And SGI itself will continue to be : : a leader in supercomputing with our scalable ccNUMA : : technology." : : The Cray business represents less than 10 percent of SGI's : : overall revenue, based on the quarter : : ended June 30, 1999. : : The new unit will be headed by supercomputer industry : : veteran Steve Oberlin, currently vice president : : of Engineering for SGI's Servers and Supercomputers Business : : Unit. : : "For certain important classes of government and industrial : : applications, there is simply no substitute : : for vector supercomputers," Oberlin said. "We're excited : : about the opportunity to place increased focus : : on this business and its special sales and service : : requirements. We look forward to continuing the : : development of the next-generation Cray SV2 vector product, : : which we believe will redefine vector : : supercomputing." : : Along with the Cray supercomputer products, the new unit : : will manage advanced packaging, cooling : : and CMOS technologies; scalable software, including the : : UNICOS(R) and UNICOS/mk(R) operating : : systems; and the CF90(TM) and SHMEM programming : : environments. : : SGI will continue to have significant engineering, sales and : : service activities at its Eagan site, and : : Chippewa Falls will continue as a principal manufacturing : : and engineering location. : : This press release includes forward-looking statements that : : involve a number of risks, uncertainties : : and other important factors that could cause actual results : : or activities to differ materially. The : : discussions with third parties described in this press : : release are preliminary, non-binding discussions : : and there is no assurance that the company will be able to : : reach definitive agreements or to : : consummate those agreements. Other factors that may affect : : the company's actual results include the : : risks, uncertainties and other factors set forth in its : : filings with the SEC (www.sec.gov), particularly : : those described under the caption "Risks That Affect Our : : Business," including the timely development, : : production and release of future Cray vector products; : : future levels of market acceptance and customer : : demand for vector computing products; and the impact of : : competitive markets, products and pricing. : : SGI provides a broad range of high-performance computing and : : advanced graphics solutions that : : enable customers to understand and conquer their toughest : : computing problems. Headquartered in : : Mountain View, Calif., with offices worldwide, the company : : is located on the Web at www.sgi.com. : : NOTE: SGI and the SGI logo are trademarks of Silicon : : Graphics, Inc. Cray, UNICOS and UNICOS/mk : : are registered trademarks, and Cray SV1, Cray SV2, Cray T3E, : : Cray T90 and CF90 are trademarks, of : : Cray Research, L.L.C., a wholly owned subsidiary of Silicon : : Graphics, Inc. All other trademarks : : mentioned herein are the property of their respective : : owners. : : SOURCE SGI

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