SGI Announces New CEO

Renowned HPC Veteran Robert H. "Bo" Ewald Returns to SGI

Apr 09, 2007, 01:00 ET from SGI

    SUNNYVALE, Calif., April 9 /PRNewswire-FirstCall/ -- SGI (Nasdaq:   SGIC)
 announced today that Robert H. "Bo" Ewald has been named Chief Executive
 Officer, effective immediately. Bo replaces Dennis McKenna who has served
 as SGI's Chief Executive Officer since January 31, 2006. In addition to his
 role as CEO, Bo will serve on SGI's Board of Directors.
     "Bo Ewald brings the right skill set to lead SGI as we move from a
 focus on restructuring and stabilization to a focus on growth and
 profitability," said Kevin Katari, SGI's Chairman of the Board and a
 Managing Member of Watershed Asset Management, LLC. "Bo's leadership skills
 and extensive experience in a range of high-performance computing and
 storage markets make him the right CEO to lead SGI to success, not only in
 the traditional technical and scientific HPC market, but also in new
 enterprise HPC segments where SGI's technologies have significant
 potential," added Mr. Katari.
     "I'm very pleased to be returning to SGI," said Bo Ewald. "This is a
 great company steeped with accomplishment and history, highly innovative
 products, extremely highly skilled and dedicated employees, and a solid and
 loyal customer base. The SGI team has done a tremendous job over the past
 year, restructuring the company and refocusing its approach to the
 business. I'm excited about the opportunity to lead SGI and build on the
 momentum to grow the business by helping our customers be successful."
     "The Board and employees of SGI are extremely grateful to Dennis
 McKenna for his decisive leadership and contributions over the past year,
 successfully restructuring and stabilizing the company," added Mr. Katari.
 "We also appreciate Dennis' support in assuring continuity and the smooth
 transition of the leadership of SGI."
     Mr. Ewald was most recently Chairman and CEO of Linux Networx, Inc.
 Prior to that, he served as President of Human Resource Solutions of
 Ceridian Corporation; CEO of Scale Eight, Inc, a high-performance
 network-clustered storage company; and President and CEO of E-Stamp.
 Earlier in his career, Bo served as Executive Vice President and Chief
 Operating Officer of Silicon Graphics, Inc. (SGI), and President and Chief
 Operating Officer of Cray Research, Inc. He began his management career at
 Los Alamos National Laboratory as the head of its Computing and
 Communications Division. He is involved in various industry organizations
 and was appointed to the President's Information Technology Advisory
 Committee from 1997 to 2001.
     As part of Bo's compensation package, SGI approved both a grant of
 stock options and restricted stock units (the "RSUs") as an inducement
 material to his entering into employment with SGI. The option grant will be
 made under SGI's management incentive plan, and the RSU award will be a
 non-plan grant. Both grants will be made later this month, with the total
 number of shares being 287,500. The number of these shares which will be
 SGI common stock subject to the option versus RSUs will be determined
 pursuant to a pre- established formula tied to the fair market value of the
 SGI common stock on the grant date. Both grants will vest in forty-eight
 (48) equal monthly installments measured from his first day of employment.
 SGI anticipates filing with the Securities and Exchange Commission a Form
 8-K on or about April 10, 2007 summarizing in more detail Bo's compensation
 arrangement with SGI.
     Bo will participate in SGI's earnings release conference call for the
 third quarter of fiscal 2007 which is planned for May 8, 2007. More details
 on the earnings call will be posted on shortly.
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