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SGI HPC Momentum Continues with Acquisition and Investment

SUNNYVALE, Calif. (February 14, 2008)—SGI (NASDAQ: SGIC) demonstrated continued momentum in the HPC market today with the announcement of its acquisition of the core assets of Linux Networx, Inc. and an investment in SGI by Oak Investment Partners and Lehman Brothers.

In exchange for the issuance of SGI common stock, SGI has acquired key Linux Networx software, patents, technology and expertise. Linux Networx is a recognized technology leader in the clustered HPC space and boasts a significant customer base. The acquisition is expected to advance SGI leadership in production-ready high performance computing solutions.

“This is another significant step in the growth of SGI,” said Bo Ewald, SGI Chief Executive Officer. “We’ve grown orders more than 30 percent in each of the last two quarters. We’re in a position to acquire key technology and expertise to further power our growth. This represents the first of such key technology acquisitions and will help further the development of our software environment and support for our clustered systems. In addition, we are very pleased that Oak and Lehman Brothers have provided additional financing to the company to help speed our growth.”

As part of the transaction, SGI has acquired software and several patents in the areas of cluster design, power and cooling and overall cluster optimization. SGI will also add key personnel and expertise in the areas of software design, system optimization, application performance tuning and cluster management.

The purchase of the Linux Networx assets closed today. For additional information please refer to SGI SEC reports.

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