SGI HPC Momentum Continues With Acquisition and Investment SGI Acquires Assets of Linux Networx, a Leader in Clustered HPC

Oak Investment Partners and Lehman Brothers Invest in SGI



    SUNNYVALE, Calif., Feb. 14 /PRNewswire-FirstCall/ -- SGI (Nasdaq:   SGIC)
 demonstrated continued momentum in the HPC market today with the
 announcement of its acquisition of the core assets of Linux Networx, Inc.
 and an investment in SGI by Oak Investment Partners and Lehman Brothers.
 
     In exchange for the issuance of SGI common stock, SGI has acquired key
 Linux Networx software, patents, technology and expertise. Linux Networx is
 a recognized technology leader in the clustered HPC space and boasts a
 significant customer base. The acquisition is expected to advance SGI
 leadership in production-ready high performance computing solutions.
 
     "This is another significant step in the growth of SGI," said Bo Ewald,
 SGI Chief Executive Officer. "We've grown orders more than 30 percent in
 each of the last two quarters. We're in a position to acquire key
 technology and expertise to further power our growth. This represents the
 first of such key technology acquisitions and will help further the
 development of our software environment and support for our clustered
 systems. In addition, we are very pleased that Oak and Lehman Brothers have
 provided additional financing to the company to help speed our growth."
 
     As part of the transaction, SGI has acquired software and several
 patents in the areas of cluster design, power and cooling and overall
 cluster optimization. SGI will also add key personnel and expertise in the
 areas of software design, system optimization, application performance
 tuning and cluster management.
 
     The purchase of the Linux Networx assets closed today. For additional
 information please refer to SGI SEC reports.
 
     SGI - Innovation for Results(TM)
 
     SGI (Nasdaq:   SGIC) is a leader in high-performance computing. SGI
 delivers a complete range of high-performance server, visualization 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 helps customers solve
 significant 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 change, 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 sgi.com.
 
     (C) 2008 SGI. All rights reserved. SGI, the SGI cube and the SGI logo
 are registered trademarks.
 
     This news release contains forward-looking statements regarding SGI
 technologies and third-party technologies 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 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, the ability to
 attract and retain customers, 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.
 
 
MEDIA CONTACT Marla Robinson marlar@sgi.com 256.773.2371 SGI PR HOTLINE 650.933.7777 SGI PR FACSIMILE 650.933.0714

SOURCE SGI
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