ACADEMIA

Receives Court Approval of Real Estate Transactions -- Silicon Graphics reached an important milestone in its restructuring efforts by filing its Joint Plan of Reorganization. SGI plans to file its Disclosure Statement by June 30. The Company also announced that the Court overseeing its restructuring has approved the terms of its settlement with Goldman Sachs to reduce and ultimately eliminate its lease obligations at Amphitheatre Technology Center (ATC) and the Crittenden Technology Center (CTC) in Mountain View. When combined with the new financing facility announced last week, the settlement with Goldman Sachs provides approximately $19 million of additional liquidity for the Company and reduces its facilities-related cash obligations by $15-20 million annually beginning in July. "Our restructuring process is quickly moving along as planned and we are anxious for all interested parties to understand the details of our plan as soon as possible. We are pleased with the Court approvals. The real estate settlement will provide significant cash flow relief for the Company," said Dennis McKenna, chairman and CEO, SGI. "Today's announcements are significant achievements and are in keeping with our aggressive agenda for returning the company to growth and profitability." More information about SGI's reorganization is available on the Internet at its Web site.