GOVERNMENT

Cray Inc. announced that Scott J. Poteracki, its Senior Vice President of Finance and Chief Financial Officer, will resign in order to take similar positions with MTI Technology Corporation, located in Tustin, California. Poteracki's resignation will become effective November 9, 2004. Kenneth W. Johnson, Cray's General Counsel, will assume the position of interim Chief Financial Officer. Johnson served as Cray's chief financial officer from 1997 until December 2001. Cray has also retained the services of William L. Scott to assist Mr. Johnson in managing the accounting department and completing Sarbanes-Oxley compliance matters. Mr. Scott has over 30 years of financial, general manager and board experience including positions of chief executive officer and chief financial officer with a number of public and private companies. He has recent experience serving as chief financial officer of Heart Technology, Inc., and NeoPath, Inc. Mr. Scott is a certified public accountant. Additionally, Cray announced commencement of a national search to replace Poteracki, "We will move to replace Scott with a top quality candidate," said James E. Rottsolk, Cray's Chief Executive Officer and President. "Ken and I look forward to working with Bill Scott while that process unfolds." "I have greatly enjoyed my time at Cray, and this is one of the hardest decisions I have ever made," said Poteracki. "Cray plays a special role in high performance computing, and I am enthusiastic about the Company's future. However, my family and I have a strong personal desire to return to California, and we are excited about the opportunity at MTI." "In his two years with us, Scott has strengthened the financial team and been a solid advisor on matters related to finance and overall strategy," said Rottsolk. "Scott has agreed to stay on board until our third quarter Form 10-Q has been filed. We wish him well in his new position."