MOUNTAIN VIEW, Calif. -- In its recently completed first quarter for fiscal year 2003, SGI posted sales wins, saw its government and defense sector grow to a third of its total business, launched its new-generation InfiniteReality4(TM) graphics for SGI(R) Onyx(R) family visualization systems, and began generating excitement for its upcoming expansion of the SGI(R) Origin(R) 3000 series and a system based on Intel(R) Itanium(R) 2 processors and SGI(R) NUMAflex(TM) architecture running the Linux(R) operating system. the first-quarter wins in the government and defense sector were: -- Link Simulation & Training, a division of L-3 Communications in Arlington, Texas, purchased eight SGI(R) Onyx(R) 3000 series high-performance graphics systems to power U.S. Air Force F-22 Full Mission and Weapons Tactics Trainers. SGI(R) visualization systems are playing a critical role in the F-22 training program by providing Air Force pilots with a high-fidelity virtual training environment that realistically simulates this next-generation air superiority fighter. Link Simulation & Training has bought two 32-processor SGI(R) Onyx(R) 3800 visualization systems, each with eight graphics pipes, that will power F-22 Full Mission Trainers, providing 360-degree out-the-window views, high-fidelity cockpit displays and simulation of correct aircraft behavior. In addition to air- and ground-based threats, the F-22 Full Mission Trainers will also simulate a variety of atmospheric and environmental conditions, including wind shear, turbulence, storm cells and lightning. F-22 Weapons Tactics Trainers will be powered by six 16-processor SGI Onyx 3800 visualization systems, each with a single graphics pipe, which will support a high-fidelity tactical environment. The trainers will provide F-22 pilots with simulated controls and displays, enabling them to practice individual and team weapon systems employment. -- In support of new missile defense test and simulation programs managed by the Missile Defense Agency, COLSA Corporation of Huntsville, Ala., has selected SGI to provide computer systems to serve as the central architecture for testbeds located in the U.S. Army Space and Missile Defense Command's Advanced Research Center (ARC). In addition to Silicon Graphics(R) Octane2(TM) visual workstations, COLSA acquired SGI(R) Origin(R) 3800 servers to represent the Ground-Based Midcourse Defense element hardware, and a 64-processor Origin 3800 server for the High-Performance Computing Center at the ARC. The $1.5 million deal will enhance the ARC's vast compute resources in support of a number of national weapons systems and missile defense programs. The first quarter marked the introduction of the new-generation InfiniteReality4 graphics from SGI. The average human eye can see over 9 million pixels of information, yet many creative and technical professionals are forced to work with visualization systems that can only display 1 million or 2 million pixels per graphics pipe -- a general limitation of other vendor offerings. SGI Onyx family systems with InfiniteReality4 graphics are capable of generating the highest quality interactive visual results on displays as large as 130 million pixels. This level of realism enables small or large groups of scientists, engineers and creative professionals to focus on solving a problem within a global context where all relevant information is displayed. Among the customers installing InfiniteReality4 graphics were: -- People's Republic of China has contracted with the Beijing Planetarium to install an SGI Onyx family visualization system connected to Zeiss Laser All-Dome projectors. The graphics supercomputing system will be the cornerstone of a new planetarium planned for installation at the revered institution, founded in 1957. This contract represents SGI Greater China's most significant win to date. SGI's Digital Planetarium solution offers the perfect combination of the latest breakthroughs in laser projection and SGI high-end graphics, revolutionizing the use of digital technology to demonstrate astronomical phenomena. For this installation SGI is teamed with leading-edge projection technology provider Carl Zeiss, with which SGI has jointly marketed solutions that enable the projection of very-high-resolution real-time 3D graphics in planetariums since 2000. SGI real-time graphics allow users to navigate through huge science data sets to create a different show for each performance, if desired. In this first-ever all-laser dome installation, audiences will be able to enjoy an immersive, entertaining and educational experience. The system comprises a 24-processor SGI(R) Onyx(R) 300 system with six InfiniteReality4 graphics pipes, 12GB memory and 12 SGI(R) TP900 144GB storage systems. -- TV2 Norway: Photo-realistic broadcast graphics and the industry's most sophisticated virtual sets will enhance news, weather and sports broadcasts across Norway with TV2's purchase of its 10th Silicon Graphics(R) Onyx2(R) visualization system with the new InfiniteReality4 graphics engine running viz [virtual studio](TM) software from vizrt. Longtime SGI customer TV2 is a privately owned, commercial broadcaster celebrating its 10th anniversary this month. Headquartered in Bergen, Norway, with additional offices and studio facilities in Oslo, TV2 uses a combination of SGI systems and viz [virtual studio] software or viz|content pilot(TM) template-based graphics applications on sports, news, and some programs and entertainment shows. One of the first European broadcasters to make the transition to a server-based playout, TV2 also utilizes SGI Media Server(TM) for broadcast as its primary transmission and on-air server in Bergen. NUMAflex(TM) Global Shared-Memory Architecture The first quarter also generated excitement for upcoming systems based on the SGI NUMAflex global shared-memory architecture -- a modular, brick-like concept that allows CPU and memory, I/O interfaces, storage, and system interconnects to be scaled independently to create a wide variety of configurations to meet specific customer requirements. In November, SGI will deliver a new model of the Origin 3000 server based on MIPS(R) processor and the IRIX(R) OS that surpasses industry standards for high-density, low-power UNIX(R) systems -- reducing total cost of ownership and deployment of supercomputing technology in more environments than previously possible. In July, SGI announced its intent to deliver the world's most scalable Linux supercomputer based on Intel Itanium 2 processors and the SGI NUMAflex architecture. In September the company set two world records: demonstrating linear scalability from 2 to 64 processors on an early-stage Itanium 2-based system and record-breaking results among microprocessor-based systems on the STREAM Triad benchmark, which tests memory bandwidth performance. Additionally, results show that the upcoming Itanium 2-based SGI system has outperformed high-end microprocessor-based systems and vector-based supercomputers. Among the first implementations of this new system will be: -- The Queensland Government through the Queensland Parallel Supercomputer Foundation has committed funds to an Itanium 2-based SGI scalable Linux system built on the innovative SGI NUMAflex shared-memory architecture. The system will be located at the University of Queensland and is intended to be used for general-purpose scientific high-performance computing across a range of research disciplines by all universities in Queensland. The major users are expected to be in the life sciences, engineering, environmental and earth systems fields. Among other key first-quarter wins were: -- Volkswagen AG (VW) chose SGI as the lead contractor and system integrator for its new Virtual Reality Studio installed in Wolfsburg, Germany. The project, valued at _1 million ($975,000 U.S.), was completed in September 2002. The newest virtual reality (VR) environment marks the 20th facility powered by SGI advanced visualization systems for VW in Germany. An SGI Onyx 300 system with InfiniteReality3(TM) graphics drives the VR facility, a large-scale environment that enables VW to visualize and review 3D digital models in high resolution and brilliant quality. The manufacturing department responsible for the VW car brand is the primary user of the facility, taking advantage of its many visual analysis and simulation technologies to discuss and evaluate digital designs from virtual tooling prototypes to completely laid-out, full-scale assembly lines or fabrication buildings. -- SGI Japan Ltd. has completed the implementation of an SGI Origin 3800 high-performance computer for Mazda Motor Corporation. Mazda has been conducting various advanced challenges in its new automobile design and development and the SGI system is being used to enhance its computer-aided engineering (CAE) capabilities for fluid dynamics and structure analysis for automobile engine design and development. The CAE workflow at Mazda has been significantly empowered by the deployment of this new SGI Origin 3800 system, and Mazda's investments for its advanced, industry-leading CAE environment are expected to continue. The SGI Origin 3800 system is powered by 56 processors and an SGI TP9100 storage system with 1.7TB of storage. -- Sahara India Media Communications Ltd. will launch one national and six regional 24-hour news channels later this year. A 10-year-old print media company, Sahara India moved into commercial broadcasting two years ago, with its launch of the Hindi-language Sahara TV entertainment channel. For its major foray into the TV news business, one of Sahara India's primary goals is to differentiate itself from India's other 24-hour news channels by using eye-popping graphics and true virtual set technology for news, weather and sports. After testing several competing systems, Sahara India chose six Silicon Graphics Onyx2 high-performance visualization systems with SGI InfiniteReality3 graphics engines and graphics-to-video output and SGI(R) XT-DIVO digital video options to run viz|content pilot template graphics and viz [virtual studio] software from vizrt. The launch of the news channels, to be broadcast in Hindi and English, is currently planned for sometime this fall. -- For broadcast media serving and archive management at Georgia Public Broadcasting, prime systems integrator MCSi selected SGI Professional Services for systems integration, three SGI Media Server for broadcast systems, two SGI Origin 300 servers and CXFS(TM) shared filesystem software, along with Hitachi 9980V storage and archive management software. The combined systems will be used to manage all the content for broadcast (play-to-air) and archive at George Public Television (GPTV). GPTV delivers PBS and local programming -- the only in-depth, statewide coverage of Georgia events and issues.