INDUSTRY

$5.2 Million Multi-Year Contracts Include SGI Development and Integration of NVG Simulation To Upgrade U.S. Air Force F-16 Mission Training Centers (MTC) -- At I/ITSEC 2003, SGI today announced that Lockheed Martin awarded to SGI a $1.6 million contract in Q1 FY03 to develop and build a prototype Night Vision Goggles (NVG) simulation system. This simulation system is to upgrade F-16 pilot training systems provided by Lockheed Martin for the U.S. Air Force F-16 Mission Training Center (MTC) program. In a separate agreement, Lockheed Martin also awarded a $3.6 million contract in Q2 FY03 to SGI for the subsequent installation of the NVG simulation on 10 currently fielded and four additional pilot training systems, which will be part of the Air Force F-16 program. The 14 MTCs are powered by SGI(R) Onyx(R) 3000 family graphics supercomputers that function as image generators that realistically and precisely simulate, in a 360-degree environment, the same multi-role functions that F-16 fighter aircraft perform in combat missions. The simulated NVG implementation produces imagery on a helmet-mounted display that accurately replicates what the pilot would see through actual night-vision goggles. The addition of NVG simulation capabilities to the flight simulators will dramatically increase the flight safety and mission effectiveness of F-16 pilots. "SGI's night-vision goggles simulation matches the high fidelity of the immersive training environment and will seamlessly integrate with existing F-16 pilot training systems," said Charles McCoy, Lockheed Martin's F-16 MTC program director. "With NVG simulation, F-16 pilots will be better prepared to do their jobs under virtually any condition." SGI, an original team member on the F-16 MTC program, is developing the high-fidelity NVG simulation system in conjunction with software partner Multi-Gen Paradigm, Inc. and the Air Force Research Laboratory in Mesa, Arizona. SGI is the prime contractor and will coordinate the efforts of Multi- Gen Paradigm, the Air Force Research Lab and SGI Professional Services. SGI will be responsible for the development and the overall integration of the NVG simulation with existing F-16 MTC flight simulators as well as assisting with database development. Recognizing the urgent need to fulfill the Air Force Headquarters- identified high priority requirement for NVG training, SGI worked with our Congressional delegations to build legislative support for the program in the last several DoD Appropriations bills resulting in over $22 million of additional funding to make the F-16 NVG simulation program possible. Particularly instrumental was Congressman David Obey from Wisconsin who led this effort to make the money available for the much needed flight simulators. "For the Air Force, night vision goggles simulation had been a critically needed, but previously unfunded requirement for the F-16 flight simulators, said Steve Detro, senior manager for DoD and Intelligence Programs at SGI. "SGI stepped up its efforts to educate Congress on the need and benefits of technology for this "safety of flight" upgrade and we are proud to have been successful. Congress has made funding available for the development of the NVG capability as well as for the actual fielding of that capability, which will upgrade existing flight simulators." SGI's development of the prototype high-fidelity NVG simulation solution has a functional demonstration target date of September 2004. The production phase will ramp up in parallel to the prototype, but no target date for installation has been announced at this time. As the conflicts in Afghanistan and Operation Iraqi Freedom have validated, new productive war tactics require air operations to be effectively conducted on a 24/7 schedule. "To add NVG simulation capabilities to the F-16 flight simulators, SGI will employ its powerful visualization systems, designed to simultaneously process 3D graphics, 2D imagery and visual effects to deliver breathtaking performance while handling the most complex data," said Stacy Gerdes, SGI NVG Program Manager. "SGI is very gratified to have been chosen for this truly mission-critical program."