SCIENCE

MOUNTAIN VIEW, CA -- SGI (NYSE: SGI) has announced estimated results for its fiscal fourth quarter, which ended June 30, 2001. Based on a preliminary review, the company expects revenue to be between $430 and $440 million, which is in line with Goldman Sachs' estimate. SGI expects to report an operating loss, before restructuring and other charges, in the range of $70 and $80 million. "As with other companies, we continue to find the current economic situation to be very challenging," said Bob Bishop, chairman and CEO. "While our revenues were within expectations, booking levels appear to be disappointing. In light of these preliminary results, we are reviewing our plans for FY2002 with respect to bookings, revenue, expense levels and cash requirements." SGI plans to announce its fourth quarter and fiscal year 2001 results along with guidance for 2002 on Thursday, July 26, 2001. SGI had unrestricted cash of approximately $120 million at quarter end, compared to $118 million at the end of the previous quarter. SGI also announced today that its president and CFO, Hal Covert, has resigned from the company. Covert, who joined the company in July 2000, is leaving for personal reasons but will continue to serve as a consultant through the end of July. "Hal made a substantial contribution to SGI in helping us to define our operational model and to streamline our business processes, including the just-completed implementation of an ERP system," said Bishop. Jeffrey Zellmer, currently corporate controller at SGI, has been named to replace Covert as CFO. Bishop and Warren Pratt, EVP and COO, will assume Covert's other responsibilities. "Jeff Zellmer brings to the CFO role a strong history of financial leadership, having served SGI for over 12 years in increasingly responsible financial positions covering field, divisional and corporate activities," said Bishop. "I am confident that Jeff will execute a seamless transition and be highly effective in this role." "SGI remains committed to its focus as the world's leader in high-performance computing, visualization solutions and complex data management for technical and creative users," said Bishop. These statements regarding estimated results are preliminary and are based on partial information and management assumptions. They also do not reflect the impact of restructuring or other special charges or the implementation of SAB 101 for FY2001. For additional information visit www.sgi.com