Cray Inc. Enters SC2004 With Industry's Strongest Product Lineup, Major Leadership Initiatives and Awards.

PITTSBURGH -- Cray Inc. (Nasdaq:CRAY):

--New Cray Opteron/Linux Supercomputers Start At Under $100,000 And Scale To 144 Teraflops, While Cray X1 System Achieves Impressive New Results

--Featured: Sandia "Red Storm," Cray X1, Cray XT3, Cray XD1 Systems And New Performance Results. Cray Dominates HPCwire Reader Awards

Global supercomputer leader Cray Inc. (Nasdaq:CRAY) said it is entering the SC2004 annual supercomputing conference with the world's most comprehensive and capable lineup of high performance computing (HPC) products, major leadership initiatives and industry awards.

--With the addition of the new Cray XD1(TM) and Cray XT3(TM) Opteron/Linux-based products to the performance-leading Cray X1(TM) system, Cray's HPC products now range from 12 to 30,000 processors, begin at under $100,000 (U.S. list), and can scale applications performance with unrivaled efficiency up to 144 teraflops (trillions of calculations per second). Cray is the only company offering multiple processing capabilities today: off-the-shelf microprocessing, vector processing, FPGA processing.

--Sandia "Red Storm" system. For the first time, attendees will be able to see a piece of the Red Storm system (NNSA/ASC booth #403). When fully installed, "Red Storm" will feature 41.5 peak teraflops, 11000-plus AMD Opteron(TM) processors, and a powerful interconnect that will enable it to outperform, on real-world applications, large-scale clusters with far higher peak performance and Linpack (Top500) ratings. Sandia will give presentations and report new results on the nuclear stockpile program (Cray booth #1021, Tuesday 2pm, 4pm).

--Oak Ridge National Laboratory (ORNL) will showcase its new National Leadership Computing Facility (booth #331). Oak Ridge plans to deploy a 20-teraflop Cray XT3 supercomputer, along with a 20-teraflop Cray X1E(TM) vector MPP supercomputer, in 2005. In May 2004, the DOE chose ORNL "to lead a partnership with a goal of building the world's most powerful supercomputer by 2007." ORNL plans to expand to a 100-teraflop Cray system at Oak Ridge in 2006, and to move in 2007 to a system with over 250 peak teraflops and up to 100 sustained teraflops on real-world problems. ORNL will give talks in the Cray booth (Wednesday, 4pm, 5pm).

--The Pittsburgh Supercomputing Center (PSC) will display a single-cabinet new Cray XT3 supercomputer (booth #110) and will give presentations in the Cray booth (Tuesday, 1pm). PSC has successfully run the Advanced Regional Prediction System (ARPS) from the Center for Analysis and Prediction of Storms, led by Kelvin Droegemeier, on a Cray XT3 system.

--The Army HPC Research Center (AHPCRC) will report new results on the Cray X1 supercomputer (Tuesday, 3pm and Wednesday, 1pm). Warsaw University/ICM (Wednesday, noon) and Ohio Supercomputer Center (Thursday, 1pm) will discuss plans for using the Cray X1 system. Cray will present the latest HPCC benchmark results (Thursday, noon). All presentations in the Cray booth.

--Cray will provide live demos of the new Cray XD1 system. The Alabama Supercomputer Authority (Tuesday, 11am) and Ohio Supercomputer Center (Thursday, 10am) will discuss plans for using this system, and OSC will give a talk on FPGA technology (Wednesday, 10am). All presentations in the Cray booth.

Cray Dominates HPCwire Reader's Choice Awards

Cray and Cray customers dominated the 2004 HPCwire Reader's Choice Awards, capturing five of 19 awards (more than any other organization) in the following categories:

--Most important emerging technology: Cray -- Red Storm

--Most important HPC technology: Cray -- Red Storm

--Most innovative implementation: PSC -- Red Storm

--Most innovative hardware technology: Cray Inc.

--Best collaboration between government and industry: ORNL and Cray Inc.

The company also captured HPCwire Editor's Choice Awards for most innovative HPC technology, and most important emerging technology (Red Storm in both cases).

HPCwire is the global high performance computing industry's most widely read publication. HPCwire readers include the customer community, government officials, users and vendors.

About Cray Inc.

As the global leader in high performance computing (HPC), Cray provides innovative supercomputing systems that enable scientists and engineers in government, industry and academia to meet both existing and future computational challenges. Building on years of experience in designing, developing, marketing and servicing the world's most advanced supercomputers, Cray offers a comprehensive portfolio of HPC systems that deliver unrivaled sustained performance on a wide range of applications. Go to www.cray.com for more information.

Safe Harbor Statement

This press release contains forward-looking statements. There are certain factors that could cause Cray's execution plans to differ materially from those anticipated by the statements above. These include the technical challenges of developing high performance computing systems, fluctuating quarterly operating results, lower margins and earnings due to significant pricing pressure, government support and timing of supercomputer system purchases, the successful porting of application programs to Cray computer systems, reliance on third-party suppliers, Cray's ability to keep up with rapid technological change, Cray's ability to compete against larger, more established companies and innovative competitors, and general economic and market conditions. For a discussion of these and other risks, see "Factors That Could Affect Future Results" in Cray's most recent Quarterly Report on Form 10-Q filed with the SEC.

Cray is a registered trademark, and Cray X1, Cray XD1 and Cray XT3 are trademarks, of Cray Inc. All other trademarks are the property of their respective owners.