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

Feb 14, 2008, 00:00 ET from 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.
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