SGI Announces Change In Auditors

SGI Audit Committee Selects McGladrey & Pullen, LLP to Provide Shareholders with Optimal Mix of Cost and Quality

Sunnyvale, Calif. (October 1, 2008) — SGI (NASDAQ: SGIC) today announced that the Audit Committee of its Board of Directors has selected McGladrey and Pullen, LLP to serve as its independent registered public accounting firm for the company's Fiscal Year 2009 ending June 26, 2009, subject to completion of McGladrey's client acceptance procedures. McGladrey replaces the company's previous independent registered accountants, KPMG LLP.

"We want to thank KPMG for its dedicated service over the past two years as the company has undergone significant change," said Kathy Lanterman, SGI chief financial officer. "KPMG provided us with a quality audit, with no disagreements on accounting issues, disclosure or auditing standards. However, after completing a nationwide review, the Board of Directors has concluded McGladrey will provide our shareholders with the right combination of predictable cost and quality as we move forward into Fiscal Year 2009 and beyond."

The change was recommended by the SGI Audit Committee and approved by the Board of Directors. SGI reported its decision to the Securities and Exchange Commission on Wednesday, October 1, 2008, in a Form 8-K filing.

About McGladrey & Pullen, LLP
McGladrey & Pullen LLP (a partner-owned CPA firm) delivers audit and attest services. It operates in an alternative practice structure with RSM McGladrey, a leading professional services firm providing accounting, tax and business consulting services to middle-market businesses. Through separate and independent legal entities, they work together to serve clients' business needs. Together the companies rank as the fifth largest U.S. provider of accounting, tax and business consulting services (source: Accounting Today), with 8,000 employees in nearly 100 offices. McGladrey & Pullen LLP and RSM McGladrey Inc. are member firms of RSM International, an affiliation of independent accounting and consulting firms.

SGI | Innovation for Results™
SGI (NASDAQ: SGIC) is a leader in high-performance computing. SGI delivers a broad range of high-performance server, storage and visualization 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 significant 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 change, providing technologies for homeland security and defense, or helping enterprises manage large data. With offices worldwide, the company is headquartered in Sunnyvale, Calif., and can be found on the Web at sgi.com.

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