Licensing Agreements with D. E. Shaw Research and Development and Fuji Medical, and OEM Agreements with Signate, Kraftway and IPEX, Allow More Customers To Enjoy The Benefits of SGI's Interconnect, Supercomputer, Storage and Visualization Technologies

MOUNTAIN VIEW, Calif., (May 2, 2005)—Inspired by the success of the acclaimed standards-based Linux® and Itanium® supercomputers, storage and visualization products from Silicon Graphics (NYSE: SGI), a growing list of technology providers today announced plans to license powerful SGI technologies for deployment around the world. The new relationships are expected to expand the global market for SGI® technologies, allowing more technology solutions than ever to be powered by SGI - and potentially driving SGI innovations into new vertical markets including commercial enterprise computing, Voice Over Internet Protocol (VOIP), medical imaging and application-specific computing appliances.

While SGI serves the needs of the most demanding scientific, engineering and creative users, many of the Company's core technologies hold groundbreaking implications for other bandwidth-hungry computing environments. OEMs looking to reduce costs and decrease time-to-market by offering differentiated, standards-based solutions can now offer solutions based on the same standard-based SGI architecture that powers some of the world's fastest supercomputers, allowing more customers in more markets to realize the enormous benefits of SGI technology. SGI's new Original Equipment Manufacturers (OEMs) partners include:

• Signate, a leading provider of open-source VOIP hardware and software solutions, will base its enterprise class PBX on SGI's Altix® supercomputing technology;
• Kraftway, one of the leading Information Technology (IT) companies in Russia, will deliver commercial enterprise computing products based on SGI® Altix® 350 mid-range servers and SGI® InifiniteStorage® solutions for the banking, finance and other industries in Russia;
• IPEX Information Technology Group, a leading IT solutions provider in Australia and a subsidiary of Volante Group Limited, the largest locally owned IT procurement and professional services company in Australia, has also licensed Altix 350 and InfiniteStorage technologies which will address the commercial enterprise computing market in Australia.

SGI's newest technology licensees include:

• D. E. Shaw Research and Development, L.L.C. has licensed SGI's high-bandwidth NUMAlink® interconnection technology for use in a massively parallel high-performance computing architecture designed to direct unprecedented computational power at the simulation of proteins and other biomolecular systems.
• FUJIFILM Medical Systems USA has entered into a development agreement with SGI to incorporate the Silicon Graphics Prism® visualization platform into its Synapse PACS. This will revolutionize the diagnostic interpretation process, changing the way the entire healthcare enterprise, not just radiology, is able to view and analyze complex data sets from modalities such as multi-detector CT and MR.

"D. E. Shaw Research and Development selected SGI's NUMAlink interconnection technology to create the network fabric in a massively parallel hardware architecture for applications in computational biochemistry," said Marty Deneroff, director of Engineering at D. E. Shaw Research and Development. "We believe SGI's industry-leading technology will be a source of competitive advantage in molecular simulations where interconnect latency and bandwidth are of great importance."

"SGI is the ideal foundation from which we can affordably deliver a powerful volume exploration option to Synapse," said Clayton Larsen, vice president of marketing and network development, Fuji. "They offer a computer industry-standard approach to visualization, combined with a proven record of developing sophisticated technologies that ultimately become mainstream."

"SGI's technology will help Signate scale its VOIP PBX solutions to meet the most demanding needs of mission critical enterprise telephony, including voice and videoconferencing, videomail, and other next-generation IP services," said William Boehlke, CEO, Signate. "The open source revolution has begun in telecom, and SGI's technology will be a key enabler."

"Kraftway selected SGI products for its line of GScale servers because SGI is the proven solution that allows our systems designed for banking, finance and government to scale without concerns as business needs grow," said Alex Kudryavtsev, CEO, Kraftway. "In addition, Kraftway will soon be expanding its focus to approach the more technical markets in Russia and CDT countries."

"As a leading Australian manufacturer of server solutions, IPEX has recognized the need to expand our offerings with high end, large, multi-processor computing solutions," said Yaron Schwalb, technical director, IPEX. "We have identified SGI as a worldwide leader in this segment. Recognizing SGI's technology leadership and quality focus, we are confident that we will deliver superior offerings to our customers by standardizing on SGI's architecture."

SGI is actively engaging OEMs, Systems Integrators (SIs) and channel resellers.

SILICON GRAPHICS | The Source of Innovation and Discovery™
SGI, also known as Silicon Graphics, Inc. (NYSE: SGI), is a leader in high-performance computing, visualization and storage. SGI's vision is to provide technology that enables the most significant scientific and creative breakthroughs of the 21st century. 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. With offices worldwide, the company is headquartered in Mountain View, Calif., and can be found on the Web at www.sgi.com.

Silicon Graphics, SGI, Altix, InfiniteStorage the SGI cube and the SGI logo are registered trademarks and Silicon Graphics Prism, NUMAlink and The Source of Innovation and Discovery are trademarks of Silicon Graphics, Inc., in the United States and/or other countries worldwide. Linux is a registered trademark of Linus Torvalds in several countries. Itanium is a trademark or registered trademark of Intel Corporation or its subsidiaries in the United States and other countries. All other trademarks mentioned herein are the property of their respective owners.

This news release contains forward-looking statements regarding SGI technologies and third-party technologies that are subject to risks and uncertainties. These risks and uncertainties could cause actual results to differ materially from those described in such statements. The reader is cautioned not to rely unduly on these forward-looking statements, which are not a guarantee of future or current performance. Such risks and uncertainties include long-term program commitments, the performance of third parties, the sustained performance of current and future products, financing risks, the ability to integrate and support a complex technology solution involving multiple providers and users, 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.