Silicon Graphics announced today that it has filed an amended plan of reorganization (the "Plan") and disclosure statement. The plan, which is subject to confirmation by the Court, reflects the global settlement agreement entered into with the Official Creditors' Committee, an Ad Hoc Committee of Senior Secured Noteholders and the largest holder of Silicon Graphics' Unsecured Debentures. With the support of its major creditor constituencies, SGI continues to move expeditiously towards emergence from Chapter 11 in September 2006. Under the Plan, Silicon Graphics will emerge a public company with a new credit facility and its total debt reduced from $345 million to $70 million. The Company's notes and debentures will be extinguished in exchange for the new common stock and cash, respectively, and rights to invest $50 million in additional shares of the reorganized company. As previously announced, certain Senior Secured Noteholders will purchase any common stock which remains unpurchased in the rights offering. All of SGI's new common stock will be owned by SGI's current noteholders, debentureholders, and management, pursuant to a management incentive program. SGI's current shareholders will receive no recovery under the plan. "We are pleased with the progress the company is making and the likelihood of an exit by the end of September," said Dennis McKenna, chairman and CEO. "With the financial re-engineering process nearing completion, the company is working in parallel on its operational initiatives to improve performance. We look forward to focusing 100 percent of our efforts on executing our new strategies." The hearing to approve the Disclosure Statement is scheduled for July 27th, and following its approval, SGI will begin soliciting creditors on its Plan of Reorganization. More information about SGI's reorganization, including the Disclosure Statement and Plan of Reorganization documents, is available at its Web site. The documents are also available via the court's website at www.nysb.uscourts.gov. Please note that a PACER password is required to access the documents via the court's website.