ACADEMIA

Silicon Graphics announced it has gained the support of its Official Committee of Unsecured Creditors and the largest holder of its Subordinated Debentures on a proposed reorganization plan. This is important milestone in SGI's reorganization process. The development paves the way for a speedy exit from Chapter 11 as a public company. The Company anticipates filing an amended Plan of Reorganization together with a Disclosure Statement by June 30, 2006. "Our pre-negotiated plan reflected an agreement with an ad-hoc committee of our Secured Noteholders," said Dennis McKenna, chairman and CEO of SGI. "Through the diligent efforts of all parties, we have now won the additional support of our Official Committee of Unsecured Creditors, which is made up of representative trade creditors and holders of our Subordinated Debentures. We have also reached a settlement with the largest holder of our Subordinated Debentures. Such agreements are crucial to a successful reorganization. Our exit timeline remains on track. We are grateful to our employees, customers, vendors and partners who have remained loyal to us throughout this process." Also today, SGI announced that it received Court approval for the $130 million financing facility with Morgan Stanley that was announced June 1, 2006. The financing agreement will fund day-to-day operations during SGI's reorganization process, providing the enhanced liquidity and flexibility needed to complete the Company's reorganization. More information about SGI's reorganization is available on the Internet at its Web site. Details of the agreement with the Official Committee of Unsecured Creditors are available in the Form 8-K filed today with the SEC.