APPLICATIONS

SEATTLE, WA -- Supercomputer provider Cray Inc. (Nasdaq:CRAY) today announced that it has received an order valued at $9 million for delivery of two early-production Cray X1 (previously code named SV2) supercomputer systems and related services to the U.S. Army High Performance Computing Research Center (AHPCRC). The systems are being acquired by and will be operated for the AHPCRC by Network Computing Services, Inc. (NetworkCS). Deliveries are scheduled for later this quarter. "The Cray X1, with its low memory latency and high memory bandwidth, will address a set of key problems in weather forecasting, structural mechanics, and other areas that are very important to us," said Paul Muzio, NetworkCS director. "We believe that the Cray X1 is a unique product, and will be an extremely important product both to us and to Cray." Muzio continued: "I believe that Cray is positioned to reassert its technological leadership in high performance computing. It has the engineering skills in-house, and is well-positioned with new products under development to regain its pre-eminence." "With the AHPCRC order and the orders we previously announced for nearly $19 million of Cray X1 systems, we have a solid start on this exciting product," said James Rottsolk, Cray Chairman and CEO. "The AHPCRC and Paul Muzio have been strong supporters of the advancement of supercomputers and their application to real world situations," Rottsolk added. "The AHPCRC purchased one of the largest Cray T3E systems shortly after Cray Inc. began operating in 2000. With these Cray X1 systems, the AHPCRC will continue its leadership position in supercomputing." About the AHPCRC The AHPCRC is a Government-University-Industry partnership committed to helping maintain the Army and United States lead in HPC research and providing future generations with the advanced tools and training they will need. Funding for support of the AHPCRC is provided by the U.S. Army, with funding for major equipment acquisition provided by the Department of Defense High Performance Computing Modernization Program. The AHPCRC partners include Clark Atlanta, Florida A&M, Howard, and Jackson State Universities, the University of Minnesota, the University of North Dakota, and Network Computing Services, Inc. See www.arc.umn.edu for further information about the AHPCRC. For more information visit www.cray.com