SGI announced
today that SGI Federal, a wholly owned subsidiary of SGI, has been selected by
NASA to provide SGI(TM) high-performance computing servers and visualization
systems to federal agencies under NASA’s Scientific and Engineering
Workstation Procurement III (SEWP III) contract.

NASA’s SEWP III is a government-wide acquisition contract for information
technology products that is open to all federal agencies. The SEWP III
procurement was conducted by NASA Goddard Space Flight Center as a full and
open competition for firm fixed price, indefinite-delivery,
indefinite-quantity contracts in nine computer systems/server classes and five
supporting equipment classes.

SGI received three SEWP III contract awards in two separate computer
systems/server classes:
two Class 5 (visualization) awards and one Class 6
(high-performance compute servers) award.
The contracts have a five-year
ordering period and a procurement ceiling of $4 billion each.
Under SEWP III,
SGI will offer federal agencies its entire product line of industry-leading
advanced graphics and high-performance computing solutions, including SGI(TM)
Origin(TM) 3000 series servers and SGI(TM) Onyx® 3000 series visualization
systems.

“We are excited to be a part of SEWP III and proud of the role that SGI
technology plays in supporting NASA’s mission,” said Anthony Robbins,
president, SGI Federal.
“This year marks SGI’s ninth year as a SEWP prime
contractor.
In that time, SGI has captured more than $350 million worth of
business from both SEWP I and II, and we expect to match that revenue level
through the SEWP III acquisition vehicle.
Our new high-performance computing
servers and visualization systems will allow NASA — SGI’s largest and first
customer — to better support its mission of serving the nation.”

The SGI Origin 3000 and SGI Onyx 3000 series systems utilize the SGI(TM)
IRIX® operating system, the world’s premier 64-bit UNIX® operating system
for high-performance computing and advanced visualization.
SGI IRIX is
renowned for its leadership in scalable computation; high-performance data
movement, sharing and management; real-time applications support; and media
streaming capabilities.

“IRIX OS-based systems from SGI have gained wide acceptance, and we’re
seeing growing demand for IRIX among UNIX users throughout the federal
government’s scientific and engineering communities,” said Larry Reynolds,
SEWP III program manager, SGI Federal.
“The SGI IRIX operating system is the
most mature and robust UNIX operating system in the industry and is
characterized by a rich set of scalability, big data management and real-time
3D visualization enhancements.”

SGI has leveraged the capabilities and benefits of industry-standard UNIX
through its IRIX operating system technology and will continue to do so.
IRIX
has been instrumental in enabling SGI to deliver generations of leading-edge
high-performance computing, advanced graphics and visual computing platforms.

Additional information about the SEWP III procurement can be found on
NASA’s Web site at http://www.sewp.nasa.gov.

This news release contains forward-looking statements regarding SGI’s
business, objectives, financial condition and future performance.
These
forward-looking statements include, among other things, statements relating to
expected levels of revenue.
These forward-looking statements are subject to
risks and uncertainties detailed from time to time in the company’s SEC
filings.
These risks and uncertainties could cause actual results to differ
materially from those expressed or implied in such forward-looking statements.
Such risks and uncertainties include, among other things:
the acceptance of
applicable technologies by markets and customers, the ability of SGI to manage
a complex set of engineering, marketing and distribution relationships,
potential disruptions due to appropriation and spending patterns of government
customers, and other risks detailed in each company’s current reports on
Form 10-Q and Form 10-K filed with the Securities and Exchange Commission.

About SGI

SGI, also known as Silicon Graphics, Inc., is a technology solutions
provider with a broad range of high-performance computing, advanced graphics
and consulting services that enable its technical and creative customers to
maintain a competitive advantage in their core businesses.
Whether being used
to design and build safer cars and airplanes, discover new medications and oil
reserves, help us understand and better predict the weather, or entertain us
with thrilling movie special effects, SGI(TM) systems and expertise are
empowering a world of innovation and discovery.
The company, which is located
on the Web at www.sgi.com, is headquartered in Mountain View, Calif., and has
offices worldwide.