SGI Announces Preliminary Altix Orders

Silicon Graphics announced that it has received preliminary confirmation from two U.S supercomputing customers of large orders for SGI Altix servers and related SGI InfiniteStorage systems and services. The orders are expected to be delivered primarily in the first two quarters of SGI's next fiscal year, which ends in June 2005. The aggregate value of the orders is expected to be approximately $55 million. SGI and its customers expect to make subsequent announcements that will contain further details of these orders. SGI is not changing its previously-announced guidance for the quarter ending June 25, 2004. SGI expects to announce its results for the 2004 fiscal year on July 27, 2004, at which time it also expects to provide guidance with respect to the first quarter of fiscal 2005.