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    August 2000

    SGI Expands Commitment to Digital Publishing Media Management and Distribution

    With the recent announcement of the company's intention to add Zx10 workstations and servers to its product line, SGI continues to strengthen its leadership position in the digital publishing market. The planned alliance with Intergraph Corporation announced last month, in which Intergraph will purchase over $100 million of SGI equipment over the next three years and SGI will acquire the Zx10 line of products, also brings additional engineering and sales resources to the SGI digital publishing team -- a collective 175 years of experience in the industry.

    The acquisition, once complete, will enable SGI, already a leader in Digital Content Creation for UNIX®, to expand its presence in the Windows® NT marketplace. SGI remains a competitive force in the digital publishing market, and with the Zx10 workstations and servers, SGI would be able to focus its industry expertise on media management and distribution in digital publishing. Providing a Foundation for World-Class Publishing Solutions SGI servers and workstations are currently installed in four of the top five commercial printers in world, including R.R. Donnelley and Quebecor, as well as publishing enterprises such as Knight-Ridder, Schawk and People Magazine. At People Magazine, the entire publication is produced on SGI workstations and servers. In addition, strategic providers such as Agfa, Heidelberg and Kodak have built world-class publishing solutions using SGI technology ranging from Raster Image Processor (RIP) servers to complete production workflow systems such as asset management.

    WAM!NET provides digital data transport, storage and management services and workflow solutions to the publishing, printing, advertising, entertainment and related media business worldwide. At the heart of WAM!NET are SGI(TM) Origin(TM) 200 and SGI(TM) Origin(TM) 2000* servers and Silicon Graphics® O2® workstations that enable WAM!NET to provide businesses with a common electronic workflow platform to seamlessly integrate their production processes and accelerate the adoption of digital workflow collaboration.

    This news release includes forward-looking statements regarding the future relationship between SGI and Intergraph, which are subject to risks and uncertainties that could cause actual results to differ materially from those described in such statements. Such risks and uncertainties include the integration of certain Intergraph products into certain SGI products, the development, production and release of certain Intergraph products by SGI, the impact of competitive markets, products and pricing, the acceptance of applicable technologies by markets and customers, the ability of SGI to manage a complex set of engineering, marketing ad distribution relationships, and other risks detailed in each company's current reports on Form 10-Q and Form 10-K filed with the Securities and Exchange Commission.

    More information available at www.sgi.com

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