SCIENCE

SEATTLE, WA -- Supercomputer provider Cray Inc. (Nasdaq NM:CRAY) today said it expects revenues for the second quarter ended June 30, 2001 to be in the range of $28.5 million to $29.0 million, modestly lower than the company's previous guidance of $31-33 million. The company said a $3 million supercomputer order expected in the second quarter slipped into the first week of the third quarter. Final results for the second quarter are scheduled to be released before the market opens on August 2, 2001. Cray Inc. added, however, that it is implementing several cost-saving measures to alleviate the expected impact of weakness in the global economy These steps will result in a lower operating cost structure which is expected to be in line with slightly lower than expected revenues in the second half 2001. Cray Inc. chairman and CEO Jim Rottsolk said, "In view of the current downturn in the overall economy, we are making a proactive effort to trim expenses in areas that are not crucial to our development milestones, marketing/sales objectives and other key business goals." Yesterday, the company told employees it is eliminating 30 positions -- about three percent of its workforce; reducing capital and materials expenditures; instituting mandatory vacations; and adopting a number of other cost-saving measures. The company expects to benefit from these expense reductions in the third and fourth quarters of 2001. "While we are not immune to near-term economic factors, Cray remains solidly positioned for future growth. The fundamental drivers of our business are intact, and we believe that the outlook for the company is on track as our next generation products come on line, new markets such as bioinformatics evolve, and economic conditions improve," added Rottsolk. Cray management expects to offer more detail on the quarterly results as well as its outlook for the remainder of the year during its regular quarterly conference call on August 2, 2001, the same day the company plans to release final results for the quarter. Details of the conference call are provided below. For additional information visit www.cray.com