SGI Transforms Clusters into Integrated Solutions with New Altix XE Line Based on Dual-Core Intel Xeon Processor

New Factory-Integrated Clusters Deliver Solutions To Address Capacity Needs of Key Vertical Markets

MOUNTAIN VIEW, Calif. (June 26, 2006)—In a strategic move aimed at transforming one-off clusters into integrated solutions for technical and enterprise computing users, Silicon Graphics (OTC: SGID) today unveiled SGI® Altix® XE. The new family of Linux® OS-based Altix XE servers and factory-configured clusters is powered by Dual-Core Intel® Xeon® processor 5100. The new processors (code-named Woodcrest) were unveiled today by Intel.

Unlike competing systems, SGI Altix XE clusters are factory-integrated in configurations designed to optimize leading applications, and are backed by SGI and its decades-long track record of successful customer deployments. Striking the ideal balance between value and 64-bit performance, the new SGI Altix XE systems are the only Intel Xeon processor-based clusters to come with SGI's vast expertise in data-intensive applications. The new systems also serve as an ideal cluster complement to the company's acclaimed SGI® Altix® servers and supercomputers, and SGI® InfiniteStorage offerings.

"With our new Altix XE servers and clusters, SGI now offers the industry's best end-to-end solution to meet the diverse workflow requirements that customers face today, and will increasingly face in the future," said Dave Parry, senior vice president and product general manager, SGI. "From mixed workloads to large, single-job deployments, SGI can now deliver precisely what customers need with cluster, server and storage solutions that fit their budgets and fulfill their deployment strategies."

SGI Altix XE servers allow customers to deploy SGI for hybrid workloads, combining SGI's traditional "capability" computing prowess with the new Altix XE clusters to efficiently address "capacity" requirements. As a result, existing SGI customers can easily achieve blended solutions customized to drive key applications in a range of markets, including life and environmental sciences, media, engineering analysis, and the enterprise. Customers new to SGI now can, more easily than ever before, integrate acclaimed SGI solutions within their infrastructures.

The new SGI solutions offer customers significant advantages over other clusters.

• Vast domain expertise. Technical computing users can tap SGI's deep vertical expertise in every major technical application area, along with a global Professional Services team rated No. 1 in the industry by SatMetrix.
• Fast, affordable deployment. Altix XE systems are available with a complete, factory-integrated solution stack to simplify deployment and reduce installation costs.
• Lower TCO. Competitive pricing, lower energy requirements, and ease of administration reduce total cost of ownership.
• Uniquely flexible. Customers can maximize their raw performance and I/O bandwidth by selecting Altix XE or SGI Altix as their cluster head node.
• 100 percent Linux. The new servers retain SGI's commitment to innovation in an industry-standard, 64-bit Linux platform. Altix XE systems plan support for both Novell SUSE® Enterprise Linux Ver. 9 and 10 (when available) and Red Hat® Enterprise Linux® 4 (planned, July 2006), along with SGI ProPack™ for Linux® 5 acceleration software.

"Sales of all types of clusters are growing quickly in the technical computing market today, with growth close to doubling each year for the last three years. One of the primary driving factors is the low cost of HPC clusters based on standard components. IDC research studies show that end users frequently find large clusters very complex to manage and they require significant effort to setup and optimize," said Earl Joseph, vice president for IDC's Technical Computing Systems practice. "SGI's approach is to integrate application-optimized clusters in the factory and to support these systems with the same team that has serviced its supercomputers and storage products."

SGI also plans to offer application-specific bundles in configurations designed to optimize the performance of some of the industry's most popular vertical applications. The first of these is a customized rendering bundle for special effects and game development that incorporates PipelineFX® Qube!™ Render Manager software, a Gigabit Ethernet switch, and a range of I/O and storage management options to address specific customer needs. (See "SGI and PipelineFX 'One-Stop' Render Management Solution Accelerates Workflow and Boosts Productivity").

"SGI's introduction of Linux clusters based on Intel Xeon processors is a logical move, as SGI already is a key supplier to large-scale research, commercial and government organizations with its Altix and storage product lines," said Ronan Mooney, Director of Commercial and Strategic Alliances, Landmark Graphics Corporation, a value-added reseller of SGI products and professional services. "It's common in the energy industry for users to run their applications on x86-based platforms. Extending SGI's product line to include x86-64 opens the door to new opportunities for deploying SGI within an organization - both in the technical arena where SGI is well known and in new application areas that could greatly benefit from its server and storage technology."

Four Cores, Two Form Factors
SGI Altix XE servers are driven by two dual-core, Intel Xeon processor 5160 CPUs, packing a total of four processor cores and supporting up to 32GB of memory in each server. At just 65 or 80 watts per socket, the systems feature a leading energy-efficient design that helps address power management and cooling concerns. A Modular Systems Management design helps meet RAS (Reliability, Availability and Serviceability) requirements, and 21GB/sec memory bandwidth contributes to industry-leading application performance.

The new servers are available in two form factors: a 1U chassis ideal for dense cluster configurations, and an I/O-rich, 2U chassis that is a prime option to serve as a cluster head node.

Blistering Performance in Dominant SGI Markets
SGI selected the Intel® Core™ next-generation mirco-architecture as the heart of its new Altix XE cluster systems because of its inherent advantages. SGI tests reveal performance gains on a wide range of key scientific applications. Compared to a dual-core 2.4GHz AMD Opteron-based system, a dual-core Intel Xeon processor 5160-based system derived more than 50 percent better performance from Gaussian, 73 percent from VASP, and 136 percent from GAMESS.

Similar performance gains have been clocked in SGI tests running engineering applications on 2.4GHz AMD Opteron versus Intel Xeon processor 5150. Among structural engineering applications, ABAQUS Standard 6-5.5 runs 29 percent faster on a Xeon processor, and MSC.Nastran V200 5R2 runs 18 percent faster. And among leading CFD applications, Fluent 6.2 runs 20 percent faster, and PowerFLOW 3.5c runs 30 percent faster.

"SGI's ongoing commitment to Intel architecture reflects a strong recognition of customer needs in the technical computing space, as well as the increasingly demanding enterprise market," said Kirk Skaugen, vice president, Digital Enterprise Group, Intel. "Working together, we expect the Altix XE servers to remain at the forefront of cluster solutions worldwide."

Pricing and Availability
SGI Altix XE cluster solutions can be ordered today. Base configuration pricing starts at less than $3,100 US List Price.

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.

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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.