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SGI Launches New NAS Storage Solutions for Enterprise and 'Traditional' Markets

New SGI Network-Attached Storage Products Drastically Cuts Administration Time, Continues to Deliver on Performance

MOUNTAIN VIEW, Calif. (October 24, 2006) — SGI (NASDAQ: SGIC) today announced the introduction of two network-attached storage (NAS) appliances, the SGI® InfiniteStorage NAS 4550 and the SGI® InfiniteStorage NAS 4050 system. Unlike previous NAS solutions from SGI, the SGI InfiniteStorage NAS 4550 and NAS 4050 are true appliances customers can put into production in a matter of minutes, as opposed to hours, without sacrificing high-performance capabilities.

The new solutions were created for customers with demanding storage environments where immediate access to large amounts of data is required. The NAS 4550 is designed for performance-driven applications while the NAS 4050 is designed to satisfy high capacity requirements. Typical applications include media production, on-line analytical processing, energy exploration, bioengineering, life sciences, government, aerospace, data archiving, eDiscovery and virtually any HPC application that needs file sharing. In addition, these new SGI NAS systems have virtually no file system size restrictions and scale as large as 18 Exabytes.

"SGI is a leader in file system storage and its NAS solutions are scalable and provide extremely high performance," said Tony Asaro, senior analyst, Enterprise Strategy Group. "The markets that they are going after represent over $1 billion in annual revenue with an estimated 30% compound annual growth rate. SGI is well known in these markets and this latest announcement should bolster its already strong position in this space."

Key features of the new InfiniteStorage solutions include:

• Super-scalable design supports large numbers of NFS & CIFS users and large capacity storage
• Fast setup wizard without the need for professional services
• Best-of-breed powerful management and diagnostic tools
• Fully integrated snapshot and remote replication modules
• Fibre Channel and SATA disk drives with up to 448 drives maximum (for NAS 4050)
• 8 to 48 GB of system memory, 2 to16 GB of array controller cache memory
• Up to 12 Gigabit Ethernet ports
• Powerful management and diagnostic tools
• Integrated iSCSI target configuration for Windows and Linux initiators

"The new SGI InfiniteStorage NAS appliances are versatile yet can be tailored for specific environments," said Bret Cox, director of storage and software marketing, SGI. "A fast, streamlined set up is only one of the many advantages we're offering our customers. Best of all, the new solutions deliver the performance expected from SGI."

The InfiniteStorage NAS 4550 and NAS 4050
SGI will offer two models of the SGI InfiniteStorage NAS 4550—The NAS 4550 Streaming for applications such as media production, data mining, oil and gas research; and the NAS 4550 Ultra for applications such as transaction systems, databases, mixed workloads and multi-user workloads of more than 500 users.

The InfiniteStorage NAS 4050 is also available in 2 models—a SATA server version and a Maximum Capacity version. The NAS 4050 was designed for applications that are primary read-centric and also requires the most cost effective storage. Typical applications are archival library, eDiscovery, secondary storage, on-line backup and imaging. It's attractively priced at less than $3 per GB.

Both NAS 4550 and NAS 4050 use SGI's Altix® 450 Server, storage and file system technologies. Factory integration and easy to use management GUI deliver an outstanding customer experience.

Management Tasks Now Automated
SGI is also offering its InfiniteStorage NAS Manager 3.2 software providing performance, diagnosis and disk utilization monitoring via a web-based graphical user interface. Using the newest version of the NAS Manager software, an administrator can have a network up and running with one of the new InfiniteStorage NAS solutions in minutes, not hours. The software also allows administrators to automatically manage file system quotas as well as have an instant picture of system usage from any workstation.

The new products are RoHS-compliant, meeting European Commission environmental standards. RoHS stands for Restriction of the Use of certain Hazardous Substances in Electrical and Electronic Equipment, which went into effect July 1, 2006.

Pricing and Availability
Pricing for the InfiniteStorage NAS 4550 begins at $200,342 ($U.S., List Price) for the Streaming model, and $238,655 ($U.S., List Price) for the Ultra model. These "base" systems include an Altix® 450 Server, 48 GB RAM, 12 Gigabit Ethernet Ports, high-performance 4Gb FC storage controller pair and 2 Full Disk Enclosures. NAS 4050 SATA server starts at $92,000 with one optimized NAS server with one 4Gb FC storage controller pair and one disk expansion tray. NAS 4050 Maximum Capacity starts at $400,000 with 2 storage controller pair and 80TB of unformatted capacity. Additional capacity and I/O expansion will increase the value of the product. The products are expected to begin shipping in December 4, 2006.

SGI - Innovation for Results
SGI delivers a complete range of high-performance server and storage solutions along with industry-leading professional services and support that enable its customers to overcome the challenges of complex data-intensive workflows and accelerate breakthrough discoveries, innovation and information transformation. SGI helps customers solve their computing challenges whether it's enhancing the quality of life through drug research, designing and manufacturing safer and more efficient cars and airplanes, studying global climate, providing technologies for homeland security and defense, 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.

© 2006 SGI. All rights reserved. SGI, Altix, the SGI cube and the SGI logo are registered trademarks of SGI in the United States and/or other countries worldwide. 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.