SGI Announces New CEO Renowned HPC Veteran Robert H. "Bo" Ewald Returns to 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.
     SGI - Innovation for Results(TM)
     SGI (Nasdaq:   SGIC) is a leader in high-performance computing. SGI
 delivers a complete range of high-performance server and storage 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 solutions help customers solve their
 computing 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, 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
     (C) 2007 SGI. All rights reserved. SGI, the SGI cube and the SGI logo
 are registered trademarks of SGI in the United States and/or other
 countries worldwide. All other trademarks mentioned herein are the property
 of their respective owners.
     This news release contains forward-looking statements regarding SGI
 technologies and future performance that are subject to risks and
 uncertainties. These risks and uncertainties could cause actual results to
 differ materially from those described in such statements. The reader is
 cautioned not to rely unduly on these forward-looking statements, which are
 not a guarantee of future or current performance. Such risks and
 uncertainties include long-term program commitments, the performance of
 third parties, the sustained performance of current and future products,
 financing risks, the ability to integrate and support a complex technology
 solution involving multiple providers and users, and other risks detailed
 from time to time in the company's most recent SEC reports, including its
 reports on Form 10-K and Form 10-Q. Actual results may vary materially.
     Contact: Lisa Pistacchio, +1-650-933-5683, or; or
 SGI PR HOTLINE, +1-650-933-7777, or SGI PR FACSIMILE, +1-650-933-0714.


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