Press Release

SGI Buys Assets of COPAN Systems


SGI Expands Storage Portfolio with High Performance Persistent Data Platform

Fremont, Calif. — February 23, 2010 — SGI (NASDAQ: SGI), a global leader in HPC and data center solutions, today announced the purchase of substantially all the assets and assumption of a limited number of liabilities of COPAN Systems, Inc., a provider of high performance storage archive solutions for real-time access to long-term persistent data.

SGI acquired the assets with the goal of expanding SGI's storage portfolio to include a highly scalable, energy efficient enterprise Massive Array of Idle Disks (MAID) platform. COPAN storage solutions are designed to allow customers to access Disk-to-Disk and Virtual Tape Library (VTL) capabilities for cost-effective management of large data environments.

"I am delighted to welcome COPAN's employees and customers to SGI," said Mark J. Barrenechea, SGI CEO. "The need for real-time access to long-term persistent data is expected to continue to expand. This acquisition will allow SGI to participate directly in this market."

With the acquisition, SGI will be able to offer an expanded portfolio of purpose-built, innovative, massively scalable high performance storage products. Specifically, with the COPAN platform, SGI will be able to offer new storage technologies that target Persistent Data storage. The platform is designed to allow customers to decrease the cost and complexity of storing and managing extensive volumes of long-term information in data-rich organizations.

COPAN's assets were purchased in a private foreclosure sale from COPAN's secured creditors. The purchase price was approximately $2 million in cash. SGI did not assume any debt of COPAN in the acquisition and assumed a limited number of liabilities. COPAN's offices in Longmont, Colorado, will be retained, and SGI intends to hire select COPAN employees.

For more information on SGI COPAN products, please visit www.sgi.com/copan.

About SGI
SGI is a global leader in large-scale clustered computing, high performance storage, HPC and data center enablement and services. SGI is focused on helping customers solve their most demanding business and technology challenges. For more information on SGI, please visit www.sgi.com.

Contact Information:

SGI Investor Relations
Erik Bylin
ebylin@sgi.com 510.933.8088

Schwartz Communications, Inc.
Gina Titus
415.512.0770
SGIPR@schwartz-pr.com

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Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to statements regarding the acquired assets, anticipated product performance, the benefit to SGI customers provided by the Copan platform and products, the benefits of the integration of the new assets into SGI's portfolio, general business outlook, projected results of operations and other statements identified by words such as "expected," "potential," "will" or other words with similar meaning. Any statements contained herein that are not statements of historical fact may be deemed forward-looking statements. Actual results may differ materially from the results anticipated in these forward-looking statements due to a number of risks and uncertainties including: liabilities assumed by SGI in the acquisition may be greater than anticipated; key personnel of COPAN may not remain with SGI following the closing; the anticipated synergies of the combined assets and the potential integration of the purchases assets with SGI's assets may not be achieved; and the combined operations may not be successfully integrated in a timely manner, if at all. Detailed information about other potential factors that could affect SGI's business, financial condition and results of operations is included in SGI's annual report on Form 10-K under the caption "Risk Factors," in Part I, Item 1A of that report, filed with the Securities and Exchange Commission ("SEC") on March 19, 2009, as updated by SGI's subsequent filings with the SEC, all of which are available at the SEC's Web site at http://www.sec.gov. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this report. SGI undertakes no responsibility to update the information in this report.