The
system is based on the Red Storm architecture co-developed by Cray and
Sandia National Laboratories., the new system achieved Linpack benchmark performance of 11.

About the ASC MSRC
The Aeronautical Systems Center (ASC) Major Shared Resource Center (MSRC)
is a computational science facility supporting Department of Defense (DoD)
research, development , and test and evaluation communities with high
performance computing and visualization resources .S.

systemics patras

"
"Cray is excited that ERDC is making our new Cray XT3 technology
available to their broad user base in support of ERDC's important
national mission.2 billion in
facilities, and an annual research program exceeding $700 million.com

Safe Harbor Statement

This press release contains forward-looking statements.
In the government's Linux high-performance computing environment ,
tradeoffs are constantly being made between scaling up and scaling out.

SILICON GRAPHICS | The Source of Innovation and Discovery(TM)
SGI, also known as Silicon Graphics, Inc.

postdocs multiagent

"This system will support our most demanding
computational research and engineering teams working on a variety of
key technologies such as simulation of tactical aircraft performance,
simulating high energy laser performance and simulation of armor
performance.

About ERDC

The U. "SGI has had a presence at
Wright-Patterson for almost 20 years. This SGI Altix supercomputer at the
ASC MSRC will help power groundbreaking research and development for the DoD
weapon systems of the future .

MEDIA CONTACT
Marla Robinson
marlar@sgi.

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Although the supercomputing center is housed at ERDC, its focus is
not only on the Army and Corps of Engineers missions. Holland , Director of the
ERDC Information Technology Laboratory, which hosts the MSRC. The Cray XT3 supercomputer sets a new standard for
the real-world performance, efficient scalability and reliability of
system designs using standard microprocessors. With
SGI Altix servers and supercomputers, government technical users have the
flexibility to do both.

dependability loria

"This is a huge boost in computational capability for the Army and
the Department of Defense," said Jeffery P. Department of Defense realize their
ambitious goals for this new system," said Peter Ungaro, Cray senior
vice president for sales, marketing and service. For a discussion of these and other risks, see "Factors
That Could Affect Future Results " in Cray's most recent Quarterly
Report on Form 10-Q filed with the SEC. "Our high-performance
computing technology today is creating new ways for the Department of Defense
to achieve military advantage and warfighting superiority on the 21st century
battlefield."
"In our efforts to serve more than 1,000 researchers throughout the DoD,
we needed a supercomputer with industry-leading capability , scalability,
production quality, ease of use, and the ability to handle massive amounts of
data ," said Steve Wourms, director, ASC MSRC.

dependability wideband

(Nasdaq:CRAY) today
announced that it has won an order to deliver one of the world's most
powerful supercomputers to the computing center for the U. "These
systems form the computational backbone of the support we provide to
the Defense mission."
"The Department of Defense computational science community will
need over 875 HABU equivalents of computing capacity by 2010.

wideband systemics

Cray Tapped to Deliver One of World's Most Powerful Supercomputers for use by U.S. Army Corps of Engineers

This new enhancement will enable us to continue
to be a leader in providing computational capabilities and expertise
for our DoD users worldwide. This system will provide DoD scientists and engineers
with the leading computational capability they need. Building on years of experience in
designing, developing, marketing and servicing the world's most
advanced supercomputers, Cray offers a comprehensive portfolio of HPC
systems that deliver unrivaled sustained performance on a wide range
of applications.

supercomputer gmd

Military Maintain
Supremacy in Weapon Systems Design

MOUNTAIN VIEW, Calif.
This latest system expands ASC MSRC's SGI supercomputing capability to more
than 4,100 processors spread across five separate shared memory SGI systems.sgi., in the United States and/or other
countries worldwide.

wideband csrg

Business Editors /Government Writers/Hardware Writers

SEATTLE----

Cray XT3 System Will More Than Triple The Computing Power
ERDC Can Apply To Military And Civil Engineering Projects

Global supercomputer leader Cray Inc. There are
certain factors that could cause Cray's execution plans to differ
materially from those anticipated by the statements above.

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In mid-2005, the Engineer Research and Development Center (ERDC)
in Vicksburg, Mississippi, will begin operating a Cray XT3 (TM)
supercomputer with over 4,000 processors and a peak performance of
more than 21 trillion calculations a second (teraflops)."
"Our users will be able to advance their critical research on one
of the world's most powerful and efficient supercomputers," said John
West, director of the ERDC Major Shared Resource Center.S.

SGI Delivers Defense Department's Most Powerful Supercomputer

S.S.
The SGI Altix family of servers and supercomputers are the most scalable
Linux systems on the planet, designed to meet the requirements of scientific,
engineering and creative users in the government who require record
performance, unparalleled value, and industry-leading 64-bit Linux solutions
to keep pace with the growing demands of government applications.

NOTE: Silicon Graphics, SGI, the SGI cube, the SGI logo and Altix are
registered trademarks, and NUMAlink and The Source of Innovation and Discovery
are trademarks of Silicon Graphics, Inc.

csrg scai

The addition
will more than triple the capability of the currently installed ERDC
Major Shared Resource Center (MSRC) systems, which include a
64-processor Cray X1(TM) vector supercomputer and a large Cray T3E
supercomputer. The new system , one of the largest built by Cray, will
secure the ERDC MSRC's position as one of the most capable high
performance computing centers in the world.

systemics supercomputing

The ERDC supercomputing center is a vital link in the day-to-day
chain that provides critical support to the nation's warfighters.
The Aeronautical Systems Center (ASC) Major Shared Resource Center (MSRC)
at Wright-Patterson Air Force Base, Ohio , has enhanced their computing power
with the recent installation of a 2,048-processor SGI Altix supercomputer that
will: aid weapon systems design of innovative materials; advance design
concepts; improve and speed modification programs; increase high fidelity
simulations; and enable more efficient tests and evaluations.
"SGI's technology enables the Department of Defense to develop next-
generation weapon systems that allow the U. All other trademarks mentioned herein are the property of their
respective owners.

sinica mml

The Cray
XT3 being installed at the ERDC MSRC, this year, is an important step
toward meeting that requirement," said Cray Henry, Director of the DoD
HPC Modernization Program (one HABU equivalent represents the
equivalent performance of the weighted DoD benchmark suite on a 1024
CPU IBM power 3 system). 2,048-Processor SGI Altix System at ASC MSRC to Help U. This is the latest example of SGI's
unique ability to take state of the art, market-leading trends, such as the
Linux operating system and Intel Itanium 2 CPUs, and make it easy to use for
engineers who aren't computer scientists .

epcc systemics

"The new Cray
XT3 is a highly innovative supercomputer built to handle the most
demanding scientific and engineering applications. Based on a robust production-ready Linux environment
and Intel Itanium 2 processors, the award-winning SGI Altix computing
architecture allows both clustering (scaling out) of individual nodes and
scalability (scaling up) of each node from 4 to 512 processors sharing up to
4TB of physical memory.

systemics supercomputing

S. The
Center's capabilities are available to users around the world 24/7,
and enable the Army and the Corps of Engineers to carry out complex
numerical simulations that support both military and civil engineering
missions. The MSRC
supports DoD-wide research and development programs that utilize
supercomputing capabilities for the Secretary of Defense, including
"Challenge Projects," some of the most important computational
projects in the Department.

osc loria

This partnership puts advanced technology in the hands of
U.
Cray is a registered trademark, and Cray XT3, Cray X1 and Cray T3E
are trademarks, of Cray Inc.S. General Services Administration, Federal
Technology Service, on behalf of the Department of Defense (DoD) High
Performance Computing Modernization Program (HPCMP), has purchased an SGI(R)
Altix(R) supercomputer to help the United States military maintain its
technological supremacy over its adversaries in weapon systems design. Whether it's sharing images to aid in brain surgery, finding oil
more efficiently, studying global climate, providing technologies for homeland
security and defense or enabling the transition from analog to digital
broadcasting, SGI is dedicated to addressing the next class of challenges for
scientific, engineering and creative users. These risks and uncertainties could cause actual results to
differ materially from those described in such statements.

scai csrg

We are fully committed
to helping ERDC and the U. Army Engineer Research and Development Center (ERDC) is
the premier research and development facility for the U . Army Corps
of Engineers, with more than 2,000 employees, $1.

About Cray Inc.
Named "Eagle" by the ASC MSRC and part of the DoD HPCMP's Technology
Insertion for fiscal year 2005 (TI -05), the Altix supercomputer is powered by
2,048 1. The entire 2TB of memory is
globally addressable by any processor in the system, which will run the
Linux(R) operating system and support the Intel C, C++, and Fortran compilers. Such risks and uncertainties
include reliance on performance of third -party partners, timely delivery of
the systems, acceptance of the systems by the customer, changes in the
authorization of government spending, and other risks detailed from time to
time in the company's most recent SEC reports, including its reports on Form
10-K and Form 10-Q.

uwb epcc

forces more quickly, less expensively, and with greater certainty
of success.
During a test run at SGI 's manufacturing facility in Chippewa Falls,
Wisc. to maintain a technological
advantage over our adversaries," said Benn Stratton, National Director of
Defense + Civilian Agencies Business Unit , SGI Federal. This massive shared-memory system from SGI allows the DoD to
simulate entire aircraft , entire weapon systems, and entire battlefield
engagements, with fidelity not possible before now ."
The increased performance and scalability provided by this Linux-based SGI
supercomputer will help put advanced technology in the hands of U. forces
more quickly, less expensively and with greater certainty of success. Linux is a registered trademark of Linus Torvalds in
several countries .

gaspard supercomputing

Army
Corps of Engineers.636 Tflop/s
(trillions of calculations per second) while operating at over 90 percent
efficiency. Created as part of the
DoD's High Performance Computing Modernization Program (HPCMP), the ASC MSRC
High Performance Computing Center is located on Wright-Patterson Air Force
Base and is one of four DoD MSRC sites. With offices worldwide, the
company is headquartered in Mountain View, Calif. Intel and Itanium are trademarks or registered trademarks
of Intel Corporation or its subsidiaries in the United States and other
countries.

epcc csrg

S.com.

scv supercomputing

The new ERDC system will be the largest
system in the Department of Defense's High Performance Computing
Modernization Program (HPCMP) and one of the largest systems anywhere
in the world.
ERDC conducts research for the Department of Defense and the Nation in
both military and civil works mission areas, including Warfighter
Support , Information Technology, Installations, Environment, and Water
Resources.

About the HPCMP

The High Performance Computing Modernization Program (HPCMP) was
initiated in 1992 in response to congressional direction to modernize
the Department of Defense (DoD) laboratories' high performance
computing (HPC) capabilities. These
include the technical challenges of developing high performance
computing systems, government support and timing of supercomputer
system purchases, the successful porting of application programs to
Cray computer systems, the successful passing of acceptance tests ,
reliance on third-party suppliers, fluctuating quarterly operating
results, lower margins and earnings due to significant pricing
pressure, Cray's ability to keep up with rapid technological change,
Cray's ability to compete against larger, more established companies
and innovative competitors , and general economic and market
conditions.

SGI's vision is to provide technology
that enables the most significant scientific and creative breakthroughs of the
21st century., and can be found on the Web
at http://www.

patras postdocs

This order is part of a multi-order award with an
aggregate value of over $23 million that Cray has received from the
DoD HPC Modernization Program. We look forward to
continuing our beneficial relationship with Cray.
The Cray XT3 supercomputer uses AMD Opteron(TM) processors
connected via an innovative, high-speed internal network and is
designed for very efficient, reliable operation at large scale.S.6 GHz Intel(R) Itanium(R) 2 processors, 2TB of memory, the SGI
NUMAlink(TM) interconnect, and 128TB of disk.

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The HPCMP provides the supercomputer
services, high-speed network communications, and computational science
expertise that enable the Defense laboratories and test centers to
conduct a wide range of focused research, development, and test
activities.cray., SGI (NYSE: SGI)
today announced that the U.S., is a leader in high-performance
computing, visualization and storage. government that are subject to risks and
uncertainties.

The reader is
cautioned not to rely unduly on these forward-looking statements, which are
not a guarantee of future or current performance.

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S. Go to www. All other trademarks are the property of
their respective owners. The SGI
Altix system will not only meet the high performance computing requirements of
the ASC MSRC but will also greatly benefit the broad user base of scientists
and engineers across the HPCMP Centers who are driving the nation's scientific
and engineering research and development.

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As the global leader in HPC, Cray provides innovative
supercomputing systems that enable scientists and engineers in
government, industry and academia to meet both existing and future
computational challenges.

This news release contains forward-looking statements regarding financial
and contractual commitments and the installation and performance of hardware
and software by the U.com
256-773-2371

SGI PR HOTLINE
650-933-7777

SGI PR FACSIMILE
650-933-0283

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