APPLICATIONS

Cray Inc. today reported that its Board of Directors has elected Dr. Frank L. Lederman as a member of the Board. Dr. Lederman served as Vice President and Chief Technical Officer of Alcoa, Inc. from 1995 to his retirement in 2001, where he was responsible for worldwide technology. From 1988 to 1995 he was Senior Vice President, Technology with Canada-based Noranda Inc. Prior to joining Noranda, he was with General Electric Company from 1976 to 1988 serving as a physicist and in a number of management positions, including as manager of electronics research programs and resources at the Corporate Research and Development Center in Schenectady, N.Y. Dr. Lederman received a M.S. and Ph.D. in Physics from the University of Illinois and a B.S. and M.S. from Carnegie-Mellon University, and was a post-doctoral fellow in Electrical Engineering at the University of Pennsylvania. "Cray is a significant contributor to advances in science, industry and our country's security," Lederman said. "I am excited to join Cray with its historic and continuing impact on technology." "We are very pleased that Frank Lederman has joined the Cray Board," said Jim Rottsolk, Cray Chairman and CEO. "He combines an extraordinarily strong background in technology management and as a scientist. He has managed significant development programs bringing sophisticated technology products to market. Frank is an enthusiastic and energetic technology executive, and he will bring an added dimension to the Board and the Company." The Company also announced that William A. Owens has resigned from the Cray Board due to his new responsibilities as chief executive officer of Nortel Networks Corporation. "We thank Bill Owens for his contributions to Cray while he was on our Board, and we wish him well in his new position at Nortel," added Rottsolk. The Company reported that at the annual meeting of shareholders held on May 12, 2004, the shareholders approved two amendments to the Company's articles of incorporation to provide for the annual election of all directors, beginning in 2005, and to increase the number of authorized shares of common stock from 120 million to 150 million shares, approved the adoption of the Company's 2004 Long-Term Equity Compensation Plan and re-elected Daniel J. Evans and Daniel C. Regis to the board.