SGI Launches New Mid-Range Altix 450 Servers and Doubles Performance of Altix 4700 Blades

Fueled by Next-Generation Dual-Core Intel Itanium 2 Processors, New Blade Systems Deliver Dramatic Price/Performance Boosts
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MOUNTAIN VIEW, Calif. (June 26, 2006)—Silicon Graphics (OTC: SGID) today introduced SGI® Altix® 450, a mid-range blade server featuring the revolutionary modular blade design first introduced in SGI® Altix® 4700. SGI also announced it is equipping the powerful Altix 450 and 4700 servers with next-generation dual-core Intel® Itanium® 2 processors (code-named Montecito).

The new Linux® systems will deliver double the performance of today's award-winning Altix® servers, while drawing less power and offering more density and flexibility for demanding, data-intensive applications.

The new SGI® Altix® 450 bolsters SGI's mid-range offerings with up to 2.5 times the system performance of the current Altix® 350® server at a lower cost. With dual-core Itanium 2 processors, SGI also is dramatically increasing the performance of its existing SGI® Altix® 4700 servers at no extra system cost to customers.

"Today's announcements reflect not only SGI's dedication to providing customers with the best possible Linux blade server performance, but also our commitment to leading the market with an entirely new generation of blade systems," said Bill Mannel, director, systems marketing, SGI. "With Altix 450 and 4700 systems powered by dual-core Intel Itanium 2 processors, SGI is providing solutions that offer far greater performance than ever before, while leveraging SGI's flexible, acclaimed blade architecture."

More Density and Performance - But with Less Power
By upgrading its blade servers with dual-core Intel Itanium 2 processors, SGI also is delivering on two key concerns of IT managers: providing greater Linux® server density to maximize floor space while reducing power consumption and heat dissipation. The next-generation dual-core Itanium 2 processors use 20 percent less power than their single-core predecessors.

For customers, this lowers the cost of owning SGI systems today and eases concerns about the financial impact of upgrades and expansions in the future.

"The power of next-generation dual-core Intel Itanium 2 processors is evident in these new blades from SGI," said Boyd Davis, general manager, server platforms group marketing, Intel. "The fast NUMAlink backplane allows SGI customers to take full advantage of the advanced Itanium 2 architecture. As a result, they can rely on SGI and Intel to maximize their ROI and keep ownership costs down with a more dense, higher performing, lower-power solution."

With the new systems, SGI also is bringing new levels of RAS (reliability, availability and serviceability) to high-end Linux environments. SGI's RAS efforts leverage its unique experience in building the world's largest and most robust server systems combined with focused investments on such features as memory error recovery.

SGI's New Blades: Density, I/O or Both
Both the SGI Altix 450 and Altix 4700 platforms are comprised of modular blades - interchangeable compute, memory, and I/O blades for "plug and solve" configuration flexibility. The innovative blade-to-NUMAlink architecture enables users to mix and match a variety of standardized blade choices, for perfect system right-sizing and highly efficient performance.

For customers requiring uncompromised Linux performance and energy efficiency at the mid-range, the new Altix 450 offers the best value. Like the Altix 4700, Altix 450 servers can be configured to maximize density, I/O or memory, or mixed to accommodate any workflow. Each Altix 450 system can scale to 38 Intel Itanium 2 sockets (up to 76 processor cores) and up to 456GB of globally addressable memory. For more information, visit: http://www.sgi.com/products/servers/altix/450/.

Ideal for HPC environments with demanding data-intensive workloads, the dual-core Altix 4700 system scales from 8 to 512 CPU sockets (up to 1,024 processor cores) and can accommodate up to 6TB of globally shared memory in a single system while delivering a teraflop of performance in a small-footprint rack. For more information, visit: http://www.sgi.com/products/servers/altix/4000/.

SGI® RASC™ Technology Takes Workloads Further
The latest SGI blade servers also are ideal complements to the industry's most powerful Field-Programmable Gate Array (FPGA) technology: the recently announced SGI® RASC™ RC100 computation blade. SGI RASC RC100 blades can accelerate the performance of many HPC applications by orders of magnitude over conventional systems at a far lower cost and much smaller footprint. For more information, visit: www.sgi.com/products/rasc/.

Pricing and Availability
Based on processor availability from Intel, SGI Altix 4700 and Altix 450 blades are expected to be available in the third calendar quarter of 2006. Altix 4700 system configurations start at less than $75,000, and Altix 450 solutions are priced from under $15,000. For more information, visit www.sgi.com/products/servers/altix/.

SILICON GRAPHICS | The Source of Innovation and Discovery™
SGI, also known as Silicon Graphics, Inc. (OTC: SGID), is a leader in high-performance computing. SGI helps customers solve their computing challenges, whether it's sharing images to aid in brain surgery, designing and manufacturing safer and more efficient cars and airplanes, studying global climate, providing technologies for homeland security and defense, enabling the transition from analog to digital broadcasting, or helping enterprises manage large data. 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, the SGI cube and the SGI logo are registered trademarks, and RASC 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. Intel and Itanium are trademarks or registered trademarks 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.