SGI Receives SAP Certification for Altix Line of Open-Source Linux Servers

With Linux gaining momentum as the open-source solution worldwide, enterprises relying on SAP(R) solutions now have a compelling new option for implementing flexible IT infrastructures. Today Silicon Graphics (OTC: SGID) announced that SAP solutions are now certified, supported and available on the award-winning SGI(R) Altix(R) server platform for Linux(R) environments.

The certification means that both new and existing SAP customers can leverage the same scalable and high-throughput SGI(R) servers already adopted by many of the world's leading automakers, energy giants, pharmaceutical companies, and manufacturers.

With Altix driving their Linux enterprise infrastructures, SAP customers can more easily and affordably consolidate their resources to reduce ownership costs. Meanwhile, new customers now have a proven, scalable and cost-efficient platform for deploying SAP solutions on Linux, which is rapidly becoming a preferred option among enterprise IT managers. In fact, by 2008, 60 percent of enterprises with 500 or more employees will migrate 80 percent of their UNIX(R) applications to Linux, according to Gartner, a leading global consulting firm.

SAP customers will also reduce ownership costs with the economies of scale offered by Intel(R) Itanium(R) 2 processors and the open-source Linux operating system. With industry-standard Linux platforms like SGI Altix, IT directors no longer are dependent on single-vendor solutions. As a result, they can minimize risk and lower the expense of upgrades, migrations and consolidations.

"Intel Itanium 2 processors, SGI Altix servers, and SAP enterprise applications deliver three things today's organizations require: scalability, versatility and cost-effectiveness," said Kirk Skaugen, vice president, Digital Enterprise Group at Intel Corporation. "This powerful combination should allow SAP users to consolidate or expand their server deployments as their needs demand, all while reducing the cost and complexity of owning and maintaining SAP enterprise solutions."

SAP customers facing data center consolidation also can benefit from the flexibility of SGI Altix systems, which easily scale from 2 to 64 processors and beyond, and even accommodate multiple terabytes of memory in a single system. SGI Altix systems are built on SGI's unique shared-memory architecture, which allows even large databases to be held entirely in memory, enabling fast data access for optimal application performance.

"Across the globe and throughout every industry, customers are seeking out tools that will help them make informed business decisions in real time," said Dave Parry, senior vice president and product general manager, SGI. "With SGI Altix servers driving SAP applications, enterprises worldwide now can achieve that goal in a Linux environment featuring unparalleled scalability. Now SAP customers can cost-effectively consolidate their applications on a proven, award-winning platform based on industry-standard technologies and featuring SGI's renowned shared-memory architecture."

Also today, SGI announced an agreement with REALTECH AG, a leading technology consulting and software firm, naming REALTECH as a certified SAP migration partner for SGI platforms [See "REALTECH To Help Migrate SAP Customers to SGI Platform"].

Since SGI launched the Altix line in 2003, the company has worked closely with the open-source community to enhance performance and scalability on Linux. Time and again, SGI Altix systems set new scalability records for Linux, helping some of the world's largest corporations increase their ROI and achieve new insights. As the only major vendor with a clear Linux strategy and a singular allegiance to Linux, SGI has made multiple technology contributions to open-source versions of the operating system.

For more information regarding the Altix family of servers, please go to http://www.sgi.com/servers/altix.

SILICON GRAPHICS | The Source of Innovation and Discovery(TM)

SGI, also known as Silicon Graphics, Inc., is a leader in high-performance computing. SGI helps customers solve their computing challenges, whether it's sharing images to aid in brain surgery, finding oil more efficiently, studying global climate, providing technologies for homeland security and defense, enabling the transition from analog to digital broadcasting, or helping enterprises manage large data. With offices worldwide, the company is headquartered in Mountain View, Calif., and can be found on the Web at http://www.sgi.com.

NOTE: Silicon Graphics, SGI, Altix, the SGI cube and the SGI logo are registered trademarks, and The Source of Innovation and Discovery is a trademark of Silicon Graphics, Inc., in the United States and/or other countries worldwide. Linux is a registered trademark of Linus Torvalds in several countries. Intel and Itanium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. UNIX is a registered trademark of The Open Group in the U.S. and other countries. All other trademarks mentioned herein are the property of their respective owners.

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, execution risks including but not limited to 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.

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