OIL & GAS

SGI said that it anticipates revenue for the first fiscal quarter ended September 26, 2003 to be between $215 million and $220 million, above the guidance range of $200 million to $210 million provided by the Company in its July 24, 2003 conference call. Based on this preliminary data, the Company currently expects to report an operating loss of between $40 and $45 million, including a previously announced restructuring charge of approximately $20 million. Without these charges, the non-GAAP operating loss is expected to be between $20 and $25 million. Unrestricted cash, cash equivalents and marketable investments at September 26, 2003 are expected to be approximately $110 million, in line with previous guidance. Actual results for the first quarter, along with guidance for the second quarter of fiscal 2004, will be discussed in the Company's regularly scheduled conference call on October 20, 2003.