SGI Teams with Avnet to Distribute High Powered Computing to Mid Market in Australia

Channel alliance set to benefit enterprise and government customers

SYDNEY (June 19, 2006)—Silicon Graphics (OTC: SGIDE) today announced the appointment of Avnet Partner Solutions as its newest distributor for the company’s high-performance computing and storage products. The appointment is in line with SGI’s channel-centric distribution strategy. Avnet will facilitate the delivery of SGI’s scalable computing solutions to enterprise and government customers with low-to-mid range requirements.

Avnet Partner Solutions, the only value-added distributor in Australia, specializes in distributed storage, enterprise computing systems, software, networking solutions and services. They market exclusively to the value-added reseller channel. Avnet will focus on distributing SGI® Altix® high-performance computing servers and SGI® InfiniteStorage solutions. The SGI® Channel Connection program, which provides sales, marketing and technical support, will be made available to resellers via Avnet.

“Avnet really understands their customer’s environments, which is why they are able to truly integrate SGI’s powerful solutions to best advantage,” said Bill Trestrail, Regional Managing Director for South Asia Pacific, SGI. “We are excited by this new agreement as it will enable us to extend our presence into a broader market from our current focus. We have a dominant position in areas of the technical computing market in Australia and we are keen to strengthen our position across the technical and creative computing uses. This relationship will enable us to better engage with business partners to bring innovative total solutions to our joint customers.”

Avnet’s well-established, integrated channel network and knowledge of vertical markets such as manufacturing, energy, government, defense and science means SGI solutions will reach a wider audience of customers. Enterprise and government end users with extreme data challenges are also set to benefit from the wider range of data intensive high-performance architectures that Avnet is able to offer the market.

SGI has forged a relationship with Avnet based on mutual market creation. Avnet vice president, Asia Pacific, Colin McKenna, said that they would be using their full suite of value added services, including logistics, sales, marketing, finance and technical support to build select market channels for SGI. “In addition, SGI’s Channel Connection program will help us keep the value added reseller community updated on SGI services.” he added.

SGI is committed to providing its partners with competitive, differentiated and channel-friendly computing solutions and the support to win new customers through its SGI Channel Connection program.
Key features of the program include:

* Channel Connection Academy: Focuses on training partners with industry and technical specialisation for a deeper understanding of customers’ needs.
* Market Advantage: Delivers sales and marketing tools, including Market Development Funds (MDF), to enable partners’ success.
* Service Advantage: Focuses on helping partners drive their own successful services business, without competition from SGI.
* Opportunity Registration: Enables a clear engagement model with no channel conflict or competition.

For more information on SGI Channel Connection and to learn how to qualify to become an SGI Channel Connection member, visit www.sgi.com/sales/resellers. To view channel partners’ reaction see quotes at www.sgi.com/
company_info/newsroom/press_releases/2005/june/channel_program.html

AVNET PARTNER SOLUTIONS
Avnet Partner Solutions is an industry leading, value-added distributor of enterprise computing systems, software, storage, networking solutions and services, marketing exclusively to the value-added reseller channel. With its Australian office in Sydney and European offices in Austria, Czech Republic, Germany, Hungary, Italy, Poland, Switzerland and the United Kingdom, Avnet Partner Solutions, Avnet Partner Solutions is a division of the $4 billion Avnet Technology Solutions Group of Avnet, Inc. (NYSE: AVT). Avnet, Inc. is a global distributor of electronic components and computer products and services from leading manufacturers, with annual sales exceeding $8.9 billion.

About Avnet Partner Solutions, Australia
Avnet Partner Solutions, Australia is an industry-leading, value-added distributor and provider of enterprise servers, storage, software and services. Avnet Partner Solutions Australia provides solutions from industry-leading manufacturers including, HP, IBM, Oracle, Enterasys Networks and Novell’s Suse Linux -- driving growth for partners and manufacturers. Avnet Partner Solutions is a division of Avnet Pacific Pty Limited, and a part of the Avnet Technology Solutions operating group of Avnet, Inc. (NYSE: AVT). For more information, visit: www.avnetpartnersolutions.com.au.

SILICON GRAPHICS | The Source of Innovation and Discovery™
SGI, also known as Silicon Graphics, Inc. (OTC: SGIDE), is a leader in high-performance computing. SGI helps customers solve their computing challenges, whether it’s sharing images to aid in brain surgery, designing and manufacturing safer and more efficient cars and airplanes, 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 www.sgi.com.

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

Safe Harbour Statement
The discussion in this news release about the Avnet Partner Solutions alliance contains forward-looking statements that involve risks and uncertainties, including the impact of competitive products and pricing, the efforts of third parties in developing, supporting, and promoting their products, the sustained performance of current and future products, the acceptance of applicable technologies by markets and customers, and the other risks detailed from time to time in the company’s SEC reports, including the report on Form 10-Q and 10-K. Actual results may vary materially.

Contact Information

Lisa Pistacchio

Corporate, Product and Media PR

Silicon Graphics, Inc.

Contact via E-mail