AUTOMOTIVE

Alias, which generated approximately $65.1 million in revenues and an operating profit of approximately $5.7 million for the year ended June 27, 2003, would operate as an independent company if the transaction is completed as presently anticipated. In the three and six month periods ended December 26, 2003, Alias generated approximately $18.4 million and $34.2 million in revenues and an operating profit of approximately $2.7 million and $3.1 million, respectively. Sales of the entire Alias product suite will continue uninterrupted, and there will be no changes to the management team or structure, service and support or product availability as a result of the negotiations or the sale of the business. "The sale of Alias will allow both companies to focus on their core marketplaces, while providing additional liquidity to SGI," said Bob Bishop, Chairman and CEO, Silicon Graphics. "Alias has been very successful in the 3D entertainment and industrial design sectors, primarily in recent years targeted at the PC market. This sale will allow SGI to concentrate our investments on growth opportunities in our core business." The sale of Alias is consistent with SGI's previously-stated strategy to focus on high-performance computing, storage and advanced visualization, with a particular emphasis on the fast-growing Linux(R) portion of the marketplace. SGI offers workstations and advanced graphics systems on the IRIX(R) operating system as well as scalable servers and storage solutions on both IRIX and Linux(R).