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Silicon Graphics Launches New Product Lines Via World Wide Web

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From Desktops to Supercomputers, Users Benefit From New Architecture and Pricing Models

MOUNTAIN VIEW, Calif. - Silicon Graphics, Inc. (NYSE:SGI) today launched its broad new line of computer products to press, analysts and customers via "Webcast Live," a cyberspace event held exclusively on the World Wide Web. The much-anticipated new products, ranging from entry-level desktop workstations to high-end scalable supercomputers and servers, provide solutions for almost every computing need including 3D graphics, digital media, Web technology and enterprise computing. In addition, they support Silicon Graphics' strategy for bringing users unprecedented computing power to the low-end and new economies of computing at the high-end, allowing customers to purchase only the technology they need.

Illustrating its commitment to pushing the technology envelope, Silicon Graphics chose the Web as the primary vehicle for announcing its products. New products include: the O2TM desktop workstation family, the OriginTM high-performance enterprise server family, the WebFORCE server, the Onyx2TM high-performance visualization supercomputers and the Cray® OriginTM 2000TM supercomputing servers. Also announced today, S2MPTM Scalable, Shared-memory, MultiProcessor, is the underlying architecture used for the WebFORCE servers, Origin and Onyx2 product lines.

"Our company philosophy is to 'think outside of the box,' and we're illustrating that philosophy today through our new products and innovative use of the Web," said Gary Lauer, executive vice president of Silicon Graphics. "We strive to put the best, most cutting-edge tools into our customers' hands, enabling them to develop powerful Web applications, process corporate data, solve complex design problems or create the greatest special effects for the next blockbuster film, better than their competition."

O2 Workstations Bring Unprecedented Performance and Capabilities to the High-Volume Desktop Market

The SGI O2 desktop workstation line, which replaces the Indy® workstation, is based on the MIPS® R5000® and R10000® processors and provides 10 times more computing power than the Indy. The new systems, network-ready with Web-browsing and TCP/IP network protocols, are completely integrated into the desktop user interface and operating system. The line also offers 3D graphics, imaging, video, I/O and video compression capabilities. Creative and engineering teams will especially maximize their productivity via a new Web-integrated user interface.

The O2 line includes a new version of the company's UNIX-based operating system, IRIX 6.3, as well as a new graphical user environment that seamlessly integrates powerful Internet and intranet publishing and file transfer capabilities. Eight configurations will be offered, ranging from 32 MB of memory, a MIPS R5000 PC 180 MHz CPU and a 1 GB hard disk to a R10000 175 MHz system.

S2MP Architecture and Related Technologies Reduce Computing Bottlenecks, Making Server and Supercomputer Scalability Affordable

The new architecture, jointly developed by Silicon Graphics and its Cray Research subsidiary, S2MP offers modular architecture that allows customers to purchase only the bandwidth required, thus reducing costs and setting it far above traditional computing architectures. S2MP utilizes the CrayLinkTM interconnect technology and the Cellular IRIX operating system; it is the first architecture to enable system scalability in a single 64-bit product line.

Origin Servers Launch Enterprise Computing Revolution

The Origin high-performance servers are based on the S2MP architecture and replace the existing line of CHALLENGE® servers. They offer computing and pricing scalability that adapt easily to today's dynamic corporate environments. Origin servers can expand from single-processor deskside systems to powerful 128-processor scalable servers without disruptive and expensive box-swaps common with other server solutions. The Origin workstations can be configured for shared-use workgroup and departmental applications, client/server applications or dedicated applications such as file and Web serving.

The Origin family consists of three server categories: Origin 200 servers, scaling from one to four MIPS R10000 processors; the Origin2000 high-performance servers, expanding from one to 64 MIPS R10000TM processors; and the Cray Origin2000 supercomputing systems, scaling from 65 to 128 MIPS R10000 processors. All Origin systems are binary-compatible with Silicon Graphics CHALLENGE and POWER CHALLENGETM series workstations.

Onyx2, A New Era in Visual Supercomputing

The Onyx2 family offers fully scalable systems, designed to tackle the most demanding visual computing challenges in manufacturing, industrial design, medical, entertainment, oil and gas and visual simulation. The family of products is based on the S2MP architecture and offers significantly increased graphics processing speed over the company's successful Onyx® graphics supercomputers. The Onyx2 line now offers the company's high-end graphics systems to a broader range of markets. The company's previously announced subsystem, RealityEngine2 and InfiniteRealityTM graphics as well as the newly developed RealityMonsterTM, provide software that allow simultaneous graphics, imaging and video data processing in real time.

The Onyx2 supercomputer supports up to four MIPS R10000 processors in deskside models and up to 24 R10000 processors in the rack models. Three products comprise the Onyx2 family: the Onyx2 RealityTM Mid-Range Deskside System with one 180 MHz R10000 processor; the Onyx2 InfiniteReality High-Performance Deskside System with two 195 MHz R10000 processors; and the Onyx2 RealityMonsterTM MultiRack System with eight MIPS 195 MHz R10000 processors.

The discussion in this news release of new products and technologies contains forward-looking statements that involve risks and uncertainties, including the timely release to manufacturing, the availability of components from suppliers, the impact of competitive products and pricing, and the other risks detailed from time to time in the company's SEC reports, including the report on Form 10-K for year ended June 30, 1996. Actual results may vary materially.

Silicon Graphics, Inc. is a leading supplier of high-performance visual and enterprise computing systems. The company's products range from low-end desktop workstations to servers and high-end Cray® supercomputers. Silicon Graphics also markets MIPS® microprocessor designs, Alias|WavefrontTM entertainment and design software and other software products. The company's key markets include the manufacturing, government, science and industries, telecommunications and entertainment sectors. Silicon Graphics and its subsidiaries have offices throughout the world and headquarters in Mountain View, California.

Silicon Graphics, the Silicon Graphics logo, CHALLENGE, and Onyx are registered trademarks, and O2, Origin, Origin200, Origin2000, WebFORCE, Onyx2, S2MP, IRIX, Cellular IRIX, POWER CHALLENGE, Reality, InfiniteReality and RealityMonster are trademarks, of Silicon Graphics, Inc. Indy is a registered trademark used under license in the U.S. and owned by Silicon Graphics, Inc. in other countries worldwide. Alias|Wavefront is a trademark of Alias|Wavefront, a division of Silicon Graphics Limited. MIPS is a registered trademark, and R5000 and R10000 are trademarks, of MIPS Technologies, Inc. Cray is a registered trademark, and CrayLink is a trademark, of Cray Research, Inc. UNIX is a registered trademark of X Open Limited.