Press Release

SGI Joins BioIT Alliance to Help Advance Scientific Discovery

SGI Collaboration Will Aid Cross-Industry Group's Integration of Science and Technology

SUNNYVALE, Calif. (June 11, 2007)—To spearhead new ways of sharing complex data in the bioinformatics market, SGI (NASDAQ: SGIC) today announced that the company has joined the BioIT Alliance, a group of organizations working together to realize the potential of personalized medicine. The Alliance unites the pharmaceutical, biotech, hardware, and software industries to explore new ways to share complex biomedical data and collaborate among multi-disciplinary teams to speed the pace of discovery in the life sciences.

"By joining the BioIT Alliance, SGI deepens its commitment to biosciences professionals and continues to advance innovative ways this user community can meet the challenges they face of ever-increasing workflow demands," said Deepak Thakkar, biosciences segment manager, SGI. "We are very pleased to join the Alliance and look forward to collaborating with other distinguished members."

The BioIT Alliance brings together science and technology leaders to consider new ways to address the unique technical challenges life scientists face in data integration, collaboration, and knowledge management and use Microsoft technology to reduce costs, streamline research, and market their products more effectively.

"The BioIT Alliance welcomes SGI, a company whose legacy in the sciences field and advances in shared memory processing architecture enables greatly accelerated performance, especially for the large data sets bioinformatics research now requires," said Don Rule, BioIT Alliance Manager and business development manager of Microsoft Strategic Relations. "SGI's long-standing customer base and industry acclaim within the life sciences community will be a terrific asset to the Alliance as we move forward in decoding the mysteries of humans, plants and animals for the betterment of all."

The decision to join the Alliance falls on-the-heals of the recent launch of SGI® Scientific Workflow Solution optimized for life sciences. The SGI Scientific Workflow Solution addresses an increasingly costly problem in today's research labs. To enable new breakthroughs in biosciences and other disciplines, modern scientific workflows must incorporate an ever-widening array of applications - something that puts extraordinary pressures on organizations struggling to make do with a single primary computing resource. SGI's Scientific Workflow Solution is a hybrid computing solution that successfully blends three different computing architectures — x86 clusters, shared memory systems and field-programmable gate arrays (FPGA) — and data storage into a single, integrated workflow environment to satisfy the diverse application performance requirements.

"With decades of experience and knowledge with our life sciences customers, SGI remains at the forefront of understanding the overwhelming need for robust, optimized, integrated, open system solutions that blast through bottlenecks in genomics, proteomics, bioinformatics, genome sequencing and drug discovery," added Thakkar.

For information on biosciences solutions from SGI visit www.sgi.com/industries/sciences/.

About the BioIT Alliance
Formed in 2006, the BioIT Alliance is a cross-industry group working to integrate science and technology in order to accelerate the pace of drug discovery and realize the potential of personalized medicine. Founding members include Accelrys Software Inc., Affymetrix, Inc., Agilent Technologies Inc., Amylin Pharmaceuticals, Inc., Applied Biosystems, The BioTeam Inc., Digipede Technologies LLC, Discovery Biosciences Corporation, Geospiza Inc., Hewlett-Packard Development Company, L.P., Illumina Inc., InterKnowlogy, Microsoft Corporation, Sun Microsystems Inc., The Scripps Research Institute, VizX Labs LLC and other key companies in the pharmaceutical, biotech, hardware and software industries. Additional information about the BioIT Alliance can be found on the BioIT Alliance Web site at http://www.bioitalliance.org.

SGI - Innovation for Results™
SGI (NASDAQ: SGIC) is a leader in high-performance computing. SGI delivers a complete range of high-performance server and storage solutions along with industry-leading professional services and support that enable its customers to overcome the challenges of complex data-intensive workflows and accelerate breakthrough discoveries, innovation and information transformation. SGI solutions help customers solve their computing challenges whether it's enhancing the quality of life through drug research, designing and manufacturing safer and more efficient cars and airplanes, studying global climate, providing technologies for homeland security and defense, or helping enterprises manage large data. With offices worldwide, the company is headquartered in Sunnyvale, Calif., and can be found on the Web at www.sgi.com.

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This news release contains forward-looking statements regarding SGI technologies and third-party technologies that are subject to risks and uncertainties. These risks and uncertainties could cause actual results to differ materially from those described in such statements. The reader is cautioned not to rely unduly on these forward-looking statements, which are not a guarantee of future or current performance. Such risks and uncertainties include long-term program commitments, the performance of third parties, the sustained performance of current and future products, financing risks, the ability to integrate and support a complex technology solution involving multiple providers and users, and other risks detailed from time to time in the company's most recent SEC reports, including its reports on Form 10-K and Form 10-Q.