Global supercomputer
leader Cray Inc. today announced it has received an
order from the U.S. Army Space and Missile Defense Command (SMDC) for
a Cray SV1(TM) supercomputer with scheduled enhancements. Financial
terms were not disclosed.

SMDC will use the system to run complex simulations in support of
its national defense initiatives, and will upgrade its Cray SV1 system
to Cray SV1ex(TM) processors, each with a peak performance of two
billion calculations per second (gigaflops). Madison Research
Corporation is the operations and integration contractor for the SMDC
Simulation Center.

The 16-processor Cray SV1 supercomputer will be installed at
SMDC’s Battle Lab at its Simulation Center in Huntsville, Ala.,
replacing a Cray J916(TM) system. It is a component of the resources
available through the SMDC partnership as a DoD High Performance
Computing Modernization Program Distributed Center. The Battle Lab
supports experimentation, conducts analyses in support of materiel
development activities and requirements determination, performs
science and technology reviews, assesses advanced concepts, and
analytically supports the definition of future space and missile
defense architectures.

“Since announcing the SV1ex’s stronger-than-anticipated
performance and more-attractive price/performance last month, we’ve
seen increased interest in our SV1 product line,” said Cray Inc.
chairman and CEO Jim Rottsolk. “New orders from long-time vector
customers like SMDC reinforce our leadership and momentum at the top
end of the HPC market.”

About Madison Research Corporation (MRC)

Madison Research Corporation, located in Huntsville, Ala.,
specializes in providing engineering and information technology
services to government and commercial clients, and has experienced
rapid growth since its incorporation in 1986. Year 2000 revenues were
over 40 million with current staff over 600 employees. MRC customers
include the Department of Defense, Department of Energy, NASA, the
Defense Intelligence Agency and other federal agencies.

About SMDC

The U.S. Army Space and Missile Defense Command, a MACOM, serves
as the Army’s proponent for space and national missile defense, and as
the Army integrator for theater missile defense. The command ensures
that Army warfighters have access to space assets and products to win
decisively with minimum casualties — and effective missile defense to
protect our nation as well as our deployed forces and those of our
friends and allies.

About Cray Inc.

Cray Inc. designs, builds and sells high-performance MPP, vector
processor and general-purpose parallel computer systems. The company
has leading edge technology, multiple product platforms, nearly 900
employees, a worldwide installed base of supercomputer systems, major
manufacturing and service capabilities and extensive global customer
relationships. Cray believes its Multithreaded Architecture and Cray
T3E(TM), Cray SuperCluster® and Cray SV2(TM) systems together
represent the future of supercomputing. Go to for more
information on the company.

Safe Harbor Statement

This press release contains forward-looking statements. There are
certain factors that could cause Cray’s execution plans to differ
materially from those anticipated by the statements above. Among such
risk factors are expected delivery and acceptance times, and timely
availability of commercially acceptable components from third party
suppliers. For a discussion of such risks, and other risks that could
affect Cray’s future performance, please see “Factors That Could
Affect Future Results” in Cray Inc.’s quarterly report on Form 10-Q.

Note to Editors: Cray and SuperCluster are registered trademarks,
and Cray SV1, Cray SV1ex, Cray SV2, Cray T3E, Cray J90 and Cray J916
are trademarks of Cray Inc. All other trademarks are the property of
their respective owners.