DEFENSE

MOUNTAIN VIEW, CA -- SGI (NYSE: SGI - news) today announced that Arthur L. Money has joined its board of directors. Money, 61, has substantial experience in the defense and intelligence area in both private sector and government positions. Most recently, he was the assistant secretary of defense for command, control, communications and intelligence and chief information officer of the U.S. Department of Defense from 1998 through April 2001. In this role, Money oversaw the department's command, control, communications, computer, intelligence, surveillance and reconnaissance activities; space and space systems projects; and information technology investments. Prior to that he held a number of other senior government positions, including assistant secretary of the Air Force for research, development and acquisition as well as executive positions in Silicon Valley, including vice president and deputy general manager for TRW Avionics and Surveillance Group, and president of ESL Inc. ``We're delighted to welcome Art Money to SGI's board,'' said Bob Bishop, chairman and CEO of SGI. ``His deep understanding of the requirements of defense and intelligence agencies will enable him to make a unique contribution to our board. Beyond his sector expertise, we also welcome the perspective he has gained in many years of managing large and complex organizations.'' More than 20% of SGI's revenues come from the U.S. federal security, intelligence and defense sector. Money joins the SGI board following the resignation of Robert Lutz from outside directorships in connection with his recent appointment as vice chairman responsible for product development at General Motors Corp. C. Richard Kramlich, a principal in the venture capital firm New Enterprise Associates, and James A. McDivitt, the former astronaut and senior vice president of government operations and international at Rockwell International Corporation, will continue as outside members of the board. For more information visit www.sgi.com