SGI Announces Intellectual Property Agreement With Microsoft

    MOUNTAIN VIEW, Calif., Oct. 22 /PRNewswire/ -- SGI (NYSE:   SGI) today
 announced an agreement with Microsoft Corporation that involves a patent
 cross-license and the transfer of certain additional intellectual property
 rights to Microsoft.  The agreement generated $62.5 million in revenue for SGI
 and closed in September 2001.
     "SGI has a rich portfolio of technical intellectual property," said Bob
 Bishop, chairman and chief executive officer of SGI.  "This agreement allows
 us to tap into the value of that IP without compromising in any way our core
 R&D or the future of our business."
     Further terms of the agreements were not disclosed.
     About SGI
     SGI, also known as Silicon Graphics, Inc., is the world's leading provider
 of high-performance computing, complex data management and visualization
 products, services and solutions that enable its technical and creative
 customers to gain strategic and competitive advantages in their core
 businesses. Whether being used to design and build safer cars and airplanes,
 discover new medications and oil reserves, help us to understand and better
 predict the weather or entertain us with thrilling movie special effects,
 SGI(TM) systems and expertise are empowering a world of innovation and
 discovery. The company, located on the Web at, is headquartered in
 Mountain View, Calif., and has offices worldwide.
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