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Sun Microsystems Announces Intent to Purchase Cray Business Systems Division.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--May 17, 1996--Sun Microsystems Inc., the network computing leader, and Silicon Graphics, Inc., have signed a letter of intent, subject to definitive agreement, for Sun to acquire the SPARC(TM)/Solaris(TM) related assets of Cray Research, Inc., a subsidiary of Silicon Graphics, Inc., for an undisclosed amount.

The Cray Business Systems Division designs and manufactures the CS6400 enterprise server, a SPARC/Solaris system that scales to 64-processors and is fully Solaris binary compatible with Sun's existing enterprise server product line.

The intended purchase follows the announcement in April of Sun's highly-acclaimed Ultra(TM) Enterprise(TM) server product family, which set a new standard for server scalability, I/O throughput and reliability features. Upon completion, this acquisition will further extend Sun's lead in building enterprise-class server solutions for large scale mission-critical network computing applications. In addition, Cray's installed base of SPARC/Solaris customers will gain access to Sun's worldwide sales and support organization, which has world-class expertise in network computing and symmetric multiprocessing.

"Sun is bringing a whole new generation of technology and products to market so that customers can build the network `backbone' infrastructure necessary to carry them into the next century," said Ed Zander, president of Sun Microsystems Computer Company. "Sun's new Ultra Enterprise servers, combined with last month's acquisition of fault-tolerant systems supplier Integrated Micro Products (IMP) plus the anticipated Cray purchase, give Sun the broadest, most scalable server line in the industry. We are squarely positioned to be a major powerhouse for industrial-strength commercial computing."

Upon completion of the acquisition, the Cray Business Systems Division will report in to Sun Microsystems Computer Company's Enterprise Server and Storage Group.

"With the acquisition of this division, Sun will gain an extremely talented group of employees with expertise in delivering scalable and reliable solutions for high-performance decision support, on-line transaction processing, business analysis and technical computing," said John Shoemaker, vice president and general manager of Sun Microsystems Computer Company's Enterprise Server and Storage Group. "We are deeply committed to supporting Cray's existing base of CS6400 customers and to providing a continuing flow of future products for these customers."

Pending approvals, Sun expects this transaction to be finalized within 90 days; further details of the intended acquisition will be released at that time.

Last month, Sun completed its acquisition of Integrated Micro Products (IMP), a U.K. based supplier of fault-tolerant computing products for telecommunications companies. With the acquisition of the Cray Business Systems Division, Sun will distinguish itself as the only vendor in the industry offering a range of systems - from low-end desktops to scalable enterprise servers to fault-tolerant systems - in a single hardware and software architecture that is fully Solaris binary compatible.

With annual revenues of more than $6 billion, Sun Microsystems, Inc. provides products and services that enable customers to build and maintain open network computing environments. Widely recognized as a proponent of open standards, the company is involved in the design, manufacture and sale of products, technologies and services for commercial and technical computing. Sun's SPARC(TM) workstations, multiprocessing servers, SPARC microprocessors, Solaris operating software and ISO-certified service organization each rank No. 1 in the UNIX industry. Java(TM), Sun's platform-independent programming language, provides a comprehensive solution to the challenge of programming for complex networks, including the Internet. Sun Microsystems was founded in 1982, and is headquartered in Mountain View, California. -0-

Note to Editors: Sun, the Sun logo, Sun Microsystems, Solaris, Ultra and Enterprise are trademarks or registered trademarks of Sun Microsystems, Inc. All SPARC trademarks, including the SCD Compliant logo, are trademarks or registered trademarks of SPARC International, Inc. UNIX is a registered trademark in the United States and other countries, licensed through X/Open Company, Ltd.

Press announcements and other information about Sun Microsystems are available on the Internet via the World Wide Web using a tool such as Netscape or NCSA Mosaic. Type http://www.sun.com at the URL prompt

CONTACT: Sun Microsystems Computer Company

Lisa Ganier, 415/786-8088

or

Burson Marsteller

Jennifer Graham, 415/614-0680
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Publication:Business Wire
Date:May 17, 1996
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