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New SGI Infinitestorage Systems Deliver Enterprise Level Technology At an Entry Level Price


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Designed to Enable Better Storage Consolidation for Small-to-Medium Businesses, SGI Delivers Low-Cost Storage Systems

MOUNTAIN VIEW, Calif. (August 22, 2006) — SGI (OTC: SGID) today announced the availability of two new entry-level, scalable SGI InfiniteStorage systems to complement the scalability, capacity and performance of its higher-end storage systems. Now shipping, the SGI® InfiniteStorage 350 offers enterprise level RAID performance at an entry level price while the SGI® InfiniteStorage 120 is a Serial Attached SCSI (SAS) JBOD. Both products are designed to match customers’ data management needs with the appropriate class of SGI distributed storage and deliver high capacity with increased density.

SGI InfiniteStorage 350 and 120 solutions are affordably priced for workgroups or remote offices/remote sites and are equally adept at transactional applications, including databases and e-mail, as well as streaming applications such as video editing. The SGI InfiniteStorage 350 system offers data-intact upgradeability to — and employs the same management interface as — the top-of-the-line, high-performance SGI InfiniteStorage 4000 and 4500 systems.

SGI InfiniteStorage 350 Systems
The SGI InfiniteStorage 350 system, with SATA disk drives, is offered at three capacity levels of 8, 16, and 24 terabytes (TB). The RAID storage solution’s 4GBit per second interface is reverse compatible with 1GBit and 2GBit infrastructure, allowing customers to extend the value of existing infrastructure.

While the enclosure is the same size as the previous system, the SGI InfiniteStorage 350 holds 16 disks instead of 14, a 14 percent gain in density, and is equipped with 500GB SATA drives. With the combination of increased density and low cost, the SGI InfiniteStorage 350 can be used to alleviate some of the pressure on back-up windows, complementing existing tape libraries by serving as an intermediate repository for backup data. Hot swappable components means the SGI storage solution is designed to ensure non-disruptive “upgrade in place,” which allows customers to increase capacity and performance while decreasing initial acquisition costs.

The SGI InfiniteStorage 350 has immediate applications in fields such as oil exploration, where tons and tons of data can be generated at remote sites. The SGI InfiniteStorage 350 is an affordable system for remote mirrored locations, where many different offices have their disaster recovery sites. And, if a business has grown beyond direct attached storage but is still a small company with limited funds, an InfiniteStorage 350 system at the initial capacity of 8TB will provide plenty of capacity to mirror data and have sufficient sized back up as well.

The SGI InfiniteStorage 350 is RoHS and NEBS-3 compliant. Entry level configurations with 8TB start under $30,000 U.S.

SGI InfiniteStorage 120 Systems
The SGI InfiniteStorage 120 system, with 3GBit per second drive link rate, replaces the SGI® InfiniteStorage TP900 as well as the D-Brick solution as the primary storage for the complete line of SGI® Altix® high-performance servers and clusters, including the new SGI® Altix® XE systems based on Dual-Core Intel® Xeon® processor 5100 series. The SGI InfiniteStorage 120 is also designed for increased density and increased capacity. While the SGI TP900 had 10 disks, a single InfiniteStorage 120 system houses up to 12 serial-attached SCSI drives in a 2-U enclosure and holds up to 3.6TB of storage. Customers have the option of 73GB drives or 300GB drives depending on performance and capacity demands.

The solution offers modular scalability: The SGI InfiniteStorage 120 solution is designed for simplicity and ease of integration for SGI Altix servers. The storage features hot swappable components and zero impact scalability: when more capacity is needed, another drive can be simply added in or another enclosure added on while the machine continues to run. The system features redundant components, such as ESMs and cooling and power supplies. Point-to point-architecture makes identifying and diagnosing drive problems easier and faster. The SGI InfiniteStorage 120 system is RoHS compliant; entry level systems start at under $6,000 U.S.

“The SGI InfiniteStorage 350 and the 120 demonstrate our continued commitment to delivering high-performance storage to the entry level, clearly showing that SGI delivers value without compromising performance,” Bret Cox, Director of Storage Marketing, SGI. “Cost-effectively managing the avalanche of data is a concern for businesses of all sizes, both of these product help customers refine their storage utilization whether through direct-attached storage or low-cost RAID.”

The SGI InfiniteStorage 350 and SGI InfiniteStorage 120, based on Engenio technology, can be ordered today for immediate delivery. For more information, contact SGI or visit http://www.sgi.com/products/storage.

SGI | The Source of Innovation and Discovery.™
SGI, also known as Silicon Graphics, Inc. (OTC: SGID), 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.

Forward-Looking Statements
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, 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.

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. Intel and Xeon are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. All other trademarks mentioned herein are the property of their respective owners.



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