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DisneyQuest Chooses SGI to Power Interactive Attractions at New Chicago Indoor Interactive Theme Park - 06/1999

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MOUNTAIN VIEW, CA (June 16, 1999) -- SGI (NYSE: SGI) today announced that its Silicon Graphics® Onyx2TM InfiniteReality2TM and Silicon Graphics® O2® visual workstations are a driving technology behind the attractions at Disney's indoor interactive theme park, DisneyQuest® Chicago, opening today.

DisneyQuest's commitment to providing breakthrough entertainment is exemplified in this five-story, interactive adventureland which allows guests of all ages to experience the characters and stories of Disney in a whole new way. The virtual reality attractions created by Walt Disney Imagineering run on SGITM hardware and supporting software. Walt Disney Imagineering is the design and development arm of Disney theme parks.

"SGI's advanced 3D technology enables many of our unique, interactive DisneyQuest attractions," said Bill Redmann, director of technology, Disney Regional Entertainment. "This cutting-edge technology lets our guests immerse themselves within the settings of the Disney stories they've enjoyed for years."

At DisneyQuest, guests can design their own roller coaster at CyberSpace Mountain. After choosing the configuration, speed and environment of the coaster, the data is converted into a real-time experience that allows guests to "ride" their own creation. Other attractions include: Aladdin's Magic Carpet Ride, Hercules in the Underworld, Virtual Jungle Cruise, Ride the Comix and Invasion! An ExtraTERRORestrial Alien Encounter.

"DisneyQuest required the computing power to create photo-realistic, real-time immersive environments," said Afshad Mistri, entertainment marketing manager, SGI. "Silicon Graphics Onyx2 systems provide the reliability to sustain unrelenting day to day operations, while delivering the real-time high quality images that meet Disney standards. This alliance between the pioneer in location-based entertainment and the leader in visual computing technology has proven successful in the past, and we anticipate another great success in Chicago."

The opening of the Chicago facility comes one year after the successful launch of the flagship location at the Walt Disney World® Resort in Orlando, Florida, and will be followed by the opening of the Philadelphia site planned for Summer 2000.

This news release contains forward-looking statements regarding the performance of certain SGI products in the DisneyQuest environment which are subject to risks and uncertainties that could cause actual results to differ materially from those described in such statements. Such risks and uncertainties include the integration of certain SGI products into the DisneyQuest environment and other risks detailed in SGI's current reports on Form 10-Q and Form 10-K filed with the Securities and Exchange Commission.

SGI is a market leader in technical computing, offering the world's most powerful servers, supercomputers and visual workstations. SGI uniquely provides a broad range of high-performance computing and advanced graphics solutions that enable customers to understand and conquer their toughest computing problems. Headquartered in Mountain View, Calif., with offices worldwide, the company is located on the Web at www.sgi.com.

Silicon Graphics, Onyx and O2 are registered trademarks, and SGI, the SGI logo, Onyx2 and InfiniteReality2 are trademarks, of Silicon Graphics, Inc. DisneyQuest is a trademark of Disney Enterprises, Inc. All other trademarks mentioned herein are the property of their respective owners.