SGI and SuSE make a deal

FOR IMMEDIATE RELEASE

SGI, SuSE ANNOUNCE OEM ALLIANCE, DEVELOPMENT AGREEMENT

SGI to Deploy SuSE Linux on SGI Altix 3000 Servers; SuSE Joins SGI in
Scaling Linux to 128 Processors

MOUNTAIN VIEW, Calif. and OAKLAND, Calif. (August 25, 2003) -- SGI (NYSE: SGI)
and SuSE Linux today announced plans to extend the Linux® OS to new levels
of scalability and performance-offering, for the first time, a fully
supported 64-processor system running a fully supported, enterprise-grade
Linux operating system.

Expected to be available in October, SGI will bundle SuSE Linux Enterprise
Server 8 on SGI® Altix 3000 servers and superclusters. SuSE Linux will
support the unique 64-processor single-node scaling capabilities of the SGI
Altix 3000 platform. SuSE will also provide third-level customer support to
SGI customers in a seamless support agreement with SGI.

The companies also announced that SGI and SuSE will work on co-development
efforts, including SGI's program to scale Linux to128 processors, which the
companies anticipate will be available next year.

While other hardware vendors and Linux distributions support only small
systems and partitions running Linux, SGI and SuSE can deliver large-scale
systems -- with nodes from 4 to 64 and soon to 128 processors*capable of
addressing high-performance computing and technical database requirements.
This collaboration opens doors for further expansion of standard Linux in
the marketplace.

"Oracle welcomes SGI and SuSE's alliance, because it will enable Oracle
customers on that platform to avail themselves of Oracle's support for
Linux," said Dave Dargo, vice president of Platform Partners, Linux and
Performance, Oracle Corp. "SGI servers, coupled with solutions based on
Oracle Database and SuSE Linux Enterprise Server, will give customers
increased choice for their enterprise Linux applications."

Not only will the companies continue to expand the capabilities and reach
of SuSE Linux, but the new offering also broadens the market opportunities
for both SGI and SuSE. Together the companies will develop and deliver an
offering for customers whose technical or scientific applications interact
with additional large-scale databases and enterprise infrastructure
software. Ideal for a broad range of markets-from bio-informatics to
automotive design and production-the combined offering provides
industry-leading computing power, bandwidth and database performance.

"SuSE Linux Enterprise Server 8, certified for the industry's key hardware
and software, will enable Altix customers to leverage the inherent security
and stability of Linux," said Uwe Heine, chief alliance officer, SuSE
Linux. "Together, SuSE and SGI can deliver high-performance Linux systems
capable of handling the unique system load demands of scalable integer
processing, throughput and memory."

The SGI Altix 3000 family of servers and superclusters combines SGI®
supercomputing architecture with Intel® Itanium® 2 processors and the Linux
operating system. Since its introduction, the SGI® Altix* supercluster has
been recognized as the first Linux cluster that scales up to 64 processors
within each node and the first cluster to allow global shared-memory access
across nodes. Inspired by the success of the SGI Altix family and the
powerful combination of standard Linux and Intel® processors, more than 60
high-performance manufacturing, science, energy and environmental
applications have been ported by their commercial developers to the 64-bit
Linux environment, more than two-thirds of which have been certified and
optimized for the platform.

"SuSE's support of advanced Linux features, such as scalability, the XFS
filesystem, security and native 64-bit environments provide SGI and SuSE
with a wealth of opportunities for collaboration," said Dave Parry, senior
vice president and general manager, Server and Platform Group, SGI. "As a
highly respected and experienced provider of open-source solutions, SuSE
shares SGI's vision of a broadly scalable and robust Linux environment for
technical and scientific computing."

On August 5, SGI announced plans to extend the Altix platform to encompass
a record 128 processors within a single instance of Linux. See the press
release titled "SGI Leads Effort to Scale Linux to 128 Processors in a
Single-System Configuration" on www.sgi.com/newsroom.

Availability
SuSE Linux Enterprise Server 8 is expected to be available on Altix systems
from SGI and SuSE in October 2003. SGI Altix 3000 servers and superclusters
supporting 64-processor nodes, in configurations up to 128 Intel Itanium 2
processors, are available today from SGI. For customers demanding even
larger Altix superclusters, SGI expects to support configurations of 256
processors in September and 512 processors in October 2003. Additional
Altix system technical and availability information is posted on
www.sgi.com/servers/altix.

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.

About SuSE
SuSE Linux is one of the world's leading providers of products and services
based on the Linux operating system. In addition to the operating system
and application software for private customers, SuSE offers software
solutions and complete systems for the use of Linux in the enterprise. SuSE
supports enterprise customers with a comprehensive range of qualified
consulting,
training and support services. Hosting the world's largest development team
for Open Source solutions, SuSE Linux shares its unique project and support
information online in the largest existing Linux knowledge database.

About SGI
SGI, also known as Silicon Graphics, Inc., is the world's leader in
high-performance computing, visualization and storage. SGI's vision is to
provide technology that enables the most significant scientific and
creative breakthroughs of the 21st century. Whether it's sharing images to
aid in
brain surgery, finding oil more efficiently, studying global climate or
enabling the transition from analog to digital broadcasting, SGI is
dedicated to addressing the next class of challenges for scientific,
engineering and creative users. SGI was named on FORTUNE magazine's 2003
list of "Top 100 Companies to Work For." With offices worldwide, the
company is headquartered in Mountain View, Calif., and can be found on the
Web at www.sgi.com.

-end-

Silicon Graphics, SGI, XFS and the SGI logo are registered trademarks and
Altix is a trademark of Silicon Graphics, Inc., in the United States and/or
other countries worldwide. SuSE is a registered trademark of SuSE Linux AG.
Linux is a registered trademark of Linus Torvalds in several countries.
Intel and Itanium are registered trademarks of Intel Corporation. Oracle is
a registered trademark of Oracle Corporation and/or its affiliates. All
other trademarks mentioned herein are the property of their respective
owners.


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THERESA CAMPBELL
Campbell Communications

Wk: 916-419-0281
Cell: 916-201-7455
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