Cray Inc. Receives Order for Cray SV1ex Supercomputer Upgrade From FRC for Naval Oceanographic Office.

Business Editors/High-Tech Writers

SEATTLE--(BUSINESS WIRE)--July 3, 2001

Global supercomputer leader Cray Inc. (Nasdaq:CRAY) today announced it has received an order for Cray SV1ex(TM) supercomputer system upgrades and related services from Future Research Corporation (FRC). Financial terms of the transaction were not disclosed.

The subcontract with FRC calls for a 64-processor Cray SV1ex supercomputer upgrade to be complete in the third quarter of 2001 at the Naval Oceanographic Office (NAVOCEANO) in Stennis Space Center, Miss. NAVOCEANO currently operates one of the largest SV1-4 clusters in the world. The NAVOCEANO Major Shared Resource Center (MSRC) is a premiere provider of high performance computing (HPC) services and support to the United States Department of Defense (DoD) High Performance Computing Modernization Program (HPCMP), supporting over 5,000 scientists and engineers engaged in DoD research and development (R&D) activities.

NAVOCEANO also uses the Cray(R) system extensively to support operational Navy HPC needs to increase the safety and effectiveness of U.S. Navy operations worldwide. This operational Navy support includes acquisition and analysis of global ocean and littoral data to provide specialized, operationally significant products and services for defense, civilian, national and international customers.

"The CRAY SV1 cluster at NAVOCEANO supports critical DoD R&D work across multiple services and agencies, including several projects which have been given very high priority by the DoD HPC Modernization Program," said Steve Adamec, director of the NAVOCEANO MSRC. "We're very pleased to bring a substantial increase in performance and functionality of this unique HPC capability to our operational and R&D user communities."

"We're thrilled to continue our long-standing relationship with NAVOCEANO by providing yet another system that cost-effectively supports their workloads," said Cray Inc. Chairman and CEO Jim Rottsolk. "Cray is committed to addressing customers' individual computing challenges with innovative architectures at attractive price/performance levels."

This Cray SV1ex order upgrades NAVOCEANO's Cray SV1-4 cluster. The order also includes an upgrade for enhanced memory, effectively doubling the system's sustainable memory bandwidth.

NAVOCEANO also operates one of the largest Cray T3E(TM) supercomputers in the world, with 1,024 processors and over 400 gigabytes of main memory.

About FRC

Future Research Corporation is a Small Disadvantaged Business 8(a) that provides technical services to government agencies and commercial clients. Headquartered in Huntsville, Ala., FRC has field offices in Mechanicsburg, Pa.; Oak Ridge, Tenn.; and Rock Island, Ill.

About NAVOCEANO

The Naval Oceanographic Office is comprised of approximately 1,000 military and civilian personnel who provide a vast array of oceanographic products and services to the U.S. Department of Defense, and other civilian, national and international customers. NAVOCEANO manages and operates one of the largest scientific computing facilities in the world as part of the DoD HPC Modernization Program.

About Cray Inc.

Cray Inc. designs, builds and sells high-performance MPP, vector processor and general-purpose parallel computer systems. The company has leading edge technology, multiple product platforms, nearly 900 employees, a worldwide installed base of supercomputer systems, major manufacturing and service capabilities and extensive global customer relationships. Cray believes its Multithreaded Architecture and Cray T3E, Cray SuperCluster(R) and Cray SV2(TM) systems together represent the future of supercomputing. Go to www.cray.com for more information on the company.

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. Among such risk factors are expected delivery and acceptance times, and timely availability of commercially acceptable components from third party suppliers. For a discussion of such risks, and other risks that could affect Cray's future performance, please see "Factors That Could Affect Future Results" in Cray Inc.'s quarterly report on Form 10-Q.

Note to Editors: Cray and SuperCluster are registered trademarks, and Cray SV1ex, Cray SV1, Cray SV2 and Cray T3E are trademarks of Cray Inc. All other trademarks are the property of their respective owners.