Silicon Graphics announced today it has executed a commitment letter with Wells Fargo Foothill, Inc. and Ableco Finance LLC with respect to a new asset-backed credit facility that will provide availability of up to $100 million. As previously disclosed, securing this new credit facility is part of the company's restructuring plan developed with the assistance of turnaround firm AlixPartners LLC and is intended to improve the Company's liquidity. The new two-year facility, which will consist of a $50 million revolving line of credit and a term loan of $50 million, will replace SGI's existing asset-based facility. The existing facility provides availability of up to $50 million, but is subject to a minimum cash collateral requirement of $20 million to support the borrowing base. The new facility has no minimum cash collateral requirement. The existing facility is used principally to support letters of credit required under leases for facilities in Mountain View, CA. The new facility will support the letters of credit and is expected to provide significant additional liquidity to support operations. As with SGI's current credit facility, actual availability under the proposed new facility will be determined under a formula based on levels of assets, including both current assets such as inventory and accounts receivable and noncurrent assets such as real property and intellectual property. The proposed new facility will contain certain financial covenants requiring SGI to maintain minimum levels of EBITDA and unrestricted cash, as well as limitations on the company's annual capital expenditures. The financing is subject to the completion of definitive agreements and is expected to be completed by the end of October 2005.