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SGI Announces Leadership Change

Dennis McKenna to Succeed Bob Bishop as Chairman and CEO

Silicon Graphics (OTC:SGID) announced today that Dennis McKenna has been named chairman of the board, chief executive officer and president, effective immediately. McKenna succeeds Robert Bishop, who will remain on the board of directors and serve as vice chairman.

"Dennis McKenna is a proven leader, with an established track record of driving positive results in difficult business environments. He is well balanced in strategy, business development and operational execution - a combination that we believe will bring improved results to SGI and its stakeholders," said James McDivitt, SGI's lead director.

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SGI® Solutions at the Forefront of Weather Prediction

Hurricane Katrina The past year's unparalleled sequence of major weather-related disasters has pushed storm forecasts into the forefront of the public's consciousness. At the 86th annual American Meterological Society Meeting, the world's top meteorologists convene seeking ever more powerful tools to help them predict the behavior of weather systems, oceans and climates. SGI is proud to see its SGI® Altix® 4700 blade system and Media Fusion powered by the Silicon Graphics Prism™ visualization systems enabling vital breakthroughs in meteorological sciences."

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January 2006

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