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Continues to Attract Talent To Strengthen Leadership Team; Further Refines Cost Structure: Silicon Graphics today reaffirmed and updated guidance for the quarter ending on June 27, 2008. For the fiscal fourth quarter of 2008, SGI expects that bookings will be in the upper range of its initial $80 to $100 million estimate; proforma revenue in the lower half of its initial $115 to $135 million estimate and a cash balance of approximately $40 million, roughly the same as the prior quarter, with no amount drawn on the $20 million revolving line of credit. The updated bookings guidance represents an approximate 25 percent year-over-year growth in bookings, one of SGI's primary objectives in fiscal year 2008. The above estimates would result in backlog growth of over twice the amount of backlog as of the end of fiscal year 2007, an approximate 120 percent growth. It is not unusual for proforma revenue results to fluctuate as we finalize our audit of proforma revenue and, to the extent these revenues change, there will be a corresponding change in backlog. SGI plans to provide bookings and proforma revenue guidance for the fiscal first quarter 2009 during the August 28th earnings call. "SGI's original guidance for the fiscal fourth quarter of 2008 remains intact, as does our strategy to execute on our operating plan to achieve a lower operating break-even point," said SGI CEO Robert "Bo" Ewald. Customer-Focused Business Model SGI continues to attract outside talent. Barbara Stinnett will lead its global services and customer support business. A seasoned executive, she was most recently executive vice president and chief customer officer at i2 Technologies. Ms. Stinnett's distinguished career has included senior executive roles at Sybase and HP where she led worldwide field operations which included marketing, sales and services. She is recognized for her customer-centric approach. SGI also strengthened its focus on storage software, visualization, and sales and marketing. The storage and software organization are combined under the leadership of Irene Qualters as senior vice president of software and storage. With the early success of SGI visualization software, Bob Pette will serve as vice president of visualization products to help realize SGI's potential in this growing area. Doug Britt, senior vice president of global sales and marketing will lead a new integrated worldwide sales, marketing, and strategy organization with Shahin Khan serving as vice president of marketing, strategy and corporate development. SGI made these announcements as it continued to achieve successes in a range of categories, in the fiscal fourth quarter 2008 as compared to prior quarters, including: -- increased traction in key verticals, such as digital media, automotive/aerospace, energy, and government/defense, among both new and existing customers -- strong showings on the latest Top500 and Green500 lists, with SGI supplying the world's most powerful supercomputer ever to be installed at an industrial customer site Having completed the first phase of its new growth strategy, SGI is now focused on building on its reputation as a highly trusted technology partner and refining its cost structure as a step toward sustained growth and profitability. Ewald explained, "As our exceptional leadership team works to realign our organization around our key priorities, we see a loyal and growing customer base that continues to invest in SGI solutions, a solutions-oriented sales and marketing organization and innovative product lines that put customers first. We will continue to move the company forward with those strengths firmly in place." SGI delivered the initial guidance referred to above on a conference call held on May 6, 2008. Investors can access the archived Webcast and audio replay of that call at its Web site. SGI will provide additional details regarding results from the fourth quarter of fiscal year 2008 in an earnings release and a call scheduled for Thursday, August 28, 2008 at 2:00 p.m. PDT. To view the latest and historical annual reports, quarterly financial statements, products and solutions offerings, and recent news releases visit the SGI web site www.sgi.com.