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MOUNTAIN VIEW, Calif., -- In its recently completed second quarter for fiscal year 2003, SGI posted several key sales wins. Included in these wins were early sales of the just-announced, award-winning SGI(R) Altix(TM) 3000 family of Linux(R) OS-based servers and superclusters, continued strong sales in the government and defense sector, which comprises a third of the company's total business, and wins across the sciences, manufacturing and media industries. SGI will soon deliver the first of the SGI Altix 3000 family of scalable, open-source servers and superclusters designed to meet the needs of scientific discovery researchers around the world and across disciplines. Universities in Austria, Australia, Germany, Japan, Poland and Spain, among other international sites, have already ordered the supercluster product, launched Jan. 7, for planned uses in such disciplines as biochemistry, bioinformatics, chemical computation, physics, mathematics, earthquake research and computational fluid dynamics. At the LinuxWorld 2003 trade show in New York City (Jan. 22-24), SGI Altix 3000 won "Best of Show" honors. The new Linux OS-based Altix 3000 family combines the compute power of Intel(R) Itanium(R) 2 processors with the unequalled scalability and high-speed memory access of the SGI(R) NUMAflex(TM) shared-memory architecture. SGI Altix 3000 superclusters provide stunning increases in performance and capability over traditional Linux clusters, scaling to hundreds-and eventually thousands-of Intel Itanium 2 processors in a 64-bit environment that is specifically optimized to reduce the time and resources required to run technical applications. Among the universities that have ordered SGI Altix 3000 superclusters: -- The Computing Center at Johannes Kepler University Linz, located in Linz, Austria, has ordered a 128-processor system for basic science applications, including running Gaussian(R) for chemical computation problems -- The University of Tokyo's Earthquake Research Institute has purchased 64-, 32- and 12-processor systems, all to be used for a variety of earthquake research projects -- The Queensland Parallel Supercomputer Foundation has purchased 64- and 16-processor systems, both to be housed at the University of Queensland in Brisbane, Australia, for use by researchers at a consortium of six Queensland universities for applications ranging from bioinformatics to marine ecology -- The University of Tokyo's Institute of Industrial Science has ordered a 64-processor system for computational chemistry problems, including quantum biochemistry research projects -- The Universitat Politecnica de Valencia, located in Valencia, Spain, has purchased a 48-processor system to run various applications for chemistry, bioinformatics, physics and engineering computational needs -- The Institute of Structural Mechanics at Bauhaus-Universitet Weimar, located in Weimar, Germany, has purchased a 40-processor system for computational problems running on homegrown codes as well as on Ansys and Abaqus -- The Academic Supercomputing and Networking Center, located in Poznan, Poland, has ordered a small server for testing codes and software development in anticipation of a planned expansion, designed for a variety of scientific computation challenges The second quarter also marked the first SGI Homeland Security and Defense Summit in Washington, D.C. Among the second-quarter wins in the government and defense sector were: -- Lockheed Martin Naval Electronics & Surveillance Systems, in Akron, Ohio, purchased SGI(R) Onyx(R) 3000 series graphics supercomputers with InfiniteReality4(TM) graphics for use in the next five F-16 pilot training systems it will supply to the U.S. Air Force. The pilot training systems, part of the U.S. Air Force F-16 Mission Training Center (MTC) program, perform the same multirole functions that F-16 fighter aircraft perform in combat missions. Each F-16 pilot training system within an MTC simulates typical F-16 tactical formations and operations and is part of a synthetic environment of geographically separated aircraft simulators that are networked together so that pilots can train as a team. The Air Force has ordered five Lockheed Martin F-16 MTC pilot training systems to be delivered to Spangdahlem air base in Germany and the Mountain Home Air Force Base in Idaho. These new units are in addition to the five F-16 pilot training systems-already powered by SGI Onyx 3000 series graphics supercomputers-that were previously delivered to Mountain Home and Shaw Air Force bases in S.C. Four of the five new F-16 simulators will be installed at Spangdahlem. The other system will be installed at Mountain Home and serve as its second trainer. -- A multimillion-dollar purchase order was booked in the December quarter by General Dynamics for the U.S. Navy's Area Air Defense Commander (AADC) Capability program. The order included a 32-processor SGI(R) Origin(R) 3000 supercomputer, three SGI Onyx 3000 series high-performance graphics systems, five Silicon Graphics(R) Octane2(TM) visualization workstations and a Silicon Graphics(R) O2+(TM) graphics workstation. AADC is powered by SGI(R) computing and visualization technology to better enable U.S. forces to conduct forward-deployed operations and homeland defense. AADC allows military commanders to quickly gather data on air and missile attacks and to develop an air defense plan to counter the threats in near real time. It is a revolutionary warfighting capability that can track literally hundreds of planes and missiles simultaneously, providing U.S. commanders with vital information such as heading, air speed and altitude and identifying aircraft as friendly, enemy or neutral. Although previous systems provided military planners with slices of data, the capability to view an entire theater's air defense picture and coordinate operations in near real time did not exist prior to AADC. Unlike other systems, AADC displays airborne objects as realistic, color-coded icons that are universally recognizable, greatly enhancing situational awareness. The Navy missile-guided cruiser USS Shiloh, which has the AADC air defense capability aboard ship, was recently deployed to the Persian Gulf as part of the Abraham Lincoln carrier battle group. AADC is currently installed on three Navy ships: the USS Mount Whitney, USS Blue Ridge and USS Shiloh. -- Lockheed Martin Aeronautics Co. has purchased SGI visualization systems to power Lockheed Martin's F-35 Joint Strike Fighter (JSF) flight simulation laboratory in Fort Worth, Texas. These SGI high-performance graphics systems will help the lab further refine the design of this stealthy, next-generation fighter aircraft. A multimillion-dollar purchase order booked in the December quarter included SGI Onyx 3000 series and SGI(R) Onyx(R) 300 visualization systems, as well as Silicon Graphics Octane2 visual workstations. Lockheed Martin engineers have finalized the external design of the F-35 JSF, but will continue to tweak the internal design by leveraging the compute and graphics power of its SGI systems. SGI visualization technology has helped Lockheed Martin achieve commonality and affordability for the F-35 JSF program through significant advancement in the design of the aircraft. Lockheed Martin will continue to rely on that technology as it approaches the JSF program's next milestone, Preliminary Design Review, which is scheduled for March 2003. The next-generation F-35 is a stealthy (radar-evading), supersonic multirole fighter designed to meet the U.S. government's requirements for a new generation of transformational weapons. The single-engine JSF will be manufactured in three versions: a conventional-takeoff-and-landing variant for the U.S. Air Force, an aircraft-carrier version for the U.S. Navy and a short-takeoff/vertical-landing version for the U.S. Marine Corps. The F-35 is designed to replace aging fighter inventories, including U.S. Air Force A-10s and F-16s, U.S. Navy F/A-18s, U.S. Marine Corps AV-8B Harriers and F/A-18s, and United Kingdom Harrier GR.7s and Sea Harriers. Among other key second-quarter wins in manufacturing, sciences and media sectors were: -- Procter & Gamble has again chosen SGI technology, purchasing new servers for high-productivity computing and visualization and storage area network (SAN) products for managing complex data requirements. P&G's pharmaceutical group will implement these new systems to power computational chemistry and molecular modeling applications to enhance collaboration and time to market for new drug discoveries. The purchase includes the installation of a 32-processor SGI(R) Origin(R) 300 server for compute-intensive applications and an SGI Onyx 300 system with InfiniteReality(R) graphics for interactive visualization. P&G also selected the SGI(R) TP9400 SAN with CXFS(TM), a shared filesystem for efficient data sharing and workflow management. SGI Technology Solutions will support the installation by providing managed services and customer support. -- Hyundai and Kia Motor Company Korea has chosen SGI technology to support the company's research and development requirements for automotive design. More than 10 departments will benefit from the performance-proven Silicon Graphics Fuel(TM) visual workstation to power multiple applications such as Dassault Systemes' CATIA(R) for computer-aided design and Star-CD(TM) from CD-adapco and Rob-CAD(R) from Tecnomatix for engineering simulation. Hyundai and Kia will install 196 Silicon Graphics Fuel visual workstations at an estimated contract value of $2 million (U.S.). -- The University of Tokyo's Human Genome Center (HGC), located within the university's Institute of Medical Science, purchased an SGI(R) Origin(R) 3900 server, the newest model of the SGI Origin 3000 series of supercomputers. The installation comprises the first large-scale Origin 3900 system in the world. SGI Japan provided the system, which is intended for human genome analysis and such computational chemistry applications as protein structure and prediction. HGC's need to deal with increased human genome data volume was the primary motivation for the upgrade, which has resulted in a threefold improvement over the system that was replaced, a Cray T94(TM) supercomputer and an SGI(R) Origin(R) 2000 server. -- Ntropic, a San Francisco-based post-production and visual effects boutique, purchased new versions of inferno(R) 5, Discreet's industry-leading visual effects and compositing system, and fire(R) 5, the industry's premier finishing system running on an SGI Onyx 3000 supercomputer. Ntropic is best known for its work on the "We're Californians" commercial for a state tourism campaign and considers the purchase critical to its success in competing with larger post facilities for pending, high-profile film and HD projects in 2003. -- Czech Television (CT) public service television in the Czech Republic awarded its new server-based newsroom project to SGI for the delivery of a complete Digital News Production System (DNPS) for managing the production of news and sports broadcasts. The project consists of two implementation phases and has an estimated completion date of February 2004. SGI's responsibilities include the design of the overall digital architecture, the integration of the multivendor technologies, and a variety of professional services, project management and other project-specific services. For CT personnel in the news and sports departments, the DNPS solution will significantly change current workflows, resulting in more effective and efficient production processes. Included in the DNPS solution are four SGI Media Server for broadcast systems with a total of 20 MPEG-2 channels, four SGI(R) TP9100 storage systems, and a central Media Repository comprising an SGI Origin 300 system and SGI(R) TP9500 storage system with 2TB of initial storage. The DNPS solution integrates SGI key partners' applications including Aveco Master Control and Clip Contribution Manager systems, Ardendo browse and desktop editing systems, and Pinnacle Systems Liquid blue and purple nonlinear editors (NLEs). This project exhibits SGI's philosophy of open architecture and the benefits to customers of integrating the best-of-breed third-party solutions. The Czech Television project will serve as a flagship installation in Eastern Europe for digital infrastructure and the change from a tape-based to a file-based news and sports production system. -- France Televisions, one of the two major broadcasters in France, purchased five SGI Media Server for broadcast systems. The media servers will provide playout in the French broadcaster's new digital news production and playout system. In the beginning of 2002, the pilot project of SGI and AVID was chosen by France Televisions. SGI will provide the playout servers for news programs on two of France Televisions' channels (France2 and France3) as well as an internal training system. SGI systems were chosen because of their support of open formats, both current and future, as well as their ability to integrate into France Televisions' storage and archiving projects. -- BB Cable Corporation, a subsidiary of Club iT Corporation and part of SOFTBANK Group in Japan selected SGI Japan, Media Cruise Solutions KK (MCS), an affiliate of SGI Japan specializing in advanced broadband technologies, and Silicon Studio Corporation (SSKK), an SGI group company, to develop BB Cable TV broadcasting center and interactive TV services. When completed, BB Cable TV's subscriber system will become the world's largest TV-over-DSL service. SGI Origin 300 servers with Thirdspace OVS(TM) software were selected as its video-on-demand (VOD) and archive servers. The SGI(R) Origin(R) servers will allow BB Cable TV to cost-effectively scale up to support the entire subscriber base and supporting future growth. An added plus of the IP broadcasting system is that TV program providers can send their TV shows to the BB Cable TV Broadcasting Center (in Shibuya, Japan) for digitalization and compression by a real-time encoder. The TV programs will then be transmitted on the Yahoo! BB Corporation's optic-fiber backbone through the ADSL lines to the home set-top boxes.