SGI And Intergraph To Form Strategic Alliance

July 28, 2000

NEWS BRIEFS

Huntsville, ALA. — SGI and Intergraph Corporation, two companies that have led the development of high-performance graphics workstations and innovative software, announced that they intend to form a strategic alliance that allows both companies the benefit of each other’s top-line products and expertise.

Under the proposed alliance, Intergraph plans to purchase $100 million in SGI products and services over three years. In addition, SGI will acquire certain assets from Intergraph Corporation, including Intergraph Computer Systems’ award-winning Zx10 family of ViZual Workstations and Servers, which is known for its performance, features and dependability in a Windows NT environment. The Zx10 line will be exclusively marketed by SGI and will complement its recently announced line of Intel processor-based workstations, the Silicon Graphics 230, Silicon Graphics 330 and Silicon Graphics 550 visual workstations featuring VPro graphics.

Specific details of the alliance will be released within the next 60 days.

“This is a tremendous opportunity for both our companies,” said Greg Goelz, vice president, Workstations and IA Servers, SGI. “SGI’s mission is to deliver industry-leading products and services to our leading-edge technical and creative customers. The Zx10 systems complement our current product offerings very well and enable us to expand our solution offerings for the digital content creation, print and publishing, visual simulation and manufacturing markets. In addition, the alliance will create a new revenue stream for SGI as Intergraph adds the SGI product line to its portfolio.”

“We’ve been actively seeking a strategic partner for our hardware business, and SGI is a natural fit for us,” said Jim Taylor, Intergraph CEO. “This is a good move for Intergraph, strengthening our strategy of providing our customers with complete end-to-end solutions, including technical applications, systems integration, consulting and services. By offering SGI and Intergraph technology to our customers, we provide a single source for software, services and hardware with the performance levels that our applications require and our customers need.”

Intergraph Computer Systems has developed high-performance hardware-high-end workstations, specialty servers and digital video products-used in numerous creative and technical disciplines. ICS was the first to bring Windows NT OS-based workstations to market and has continued to introduce technology such as Wahoo Technology with Streaming Multiport Architecture, a systems architecture specifically engineered to dramatically improve both throughput and performance for 2D/3D graphics. The Zx10 ViZual workstation has already received acclaim for its speed and dependability, including recent news articles in Video Systems, Computer Graphics World, Millimeter, Animation Magazine, TV Technology, Design Graphics, CADENCE and Desktop Engineering.

SGI Visual Workstations for IRIX, Linux and Windows SGI markets a full line of high-performance graphics workstations and solutions, including the Silicon Graphics O2, and Silicon Graphics Octane2 visual workstations for IRIX and the aforementioned 230, 330 and 550 visual workstations for Windows and Linux. The addition of the Zx10 family of workstations and servers complements the SGI offering and will allow the company to more fully address the needs of its customers.

The discussion in this release of the strategic alliance between SGI and Intergraph contains forward looking statements that involve risks and uncertainties, including the impact of competitive products and pricing, the timing of product releases, supply constraints and the other risks detailed from time to time in SGI’s SEC reports, including the report on Form 10-Q for the quarter ended March 31, 2000, and Intergraph’s Form 10-Q for the quarter ended March 31, 2000, and Form 10-K for the year ended Dec. 31, 1999. Actual results may vary.

Intergraph Corporation is a worldwide provider of technical solutions and systems integration. The company’s vertically focused business units develop, market and support software and services for local and national governments and for global industries, including transportation, utilities, communications, process plant design, mapping/GIS, photogrammetry and public safety. Headquartered in Huntsville, Ala., with offices worldwide, Intergraph is located on the Web at http://www.intergraph.com .

SGI provides a broad range of high-performance computing and advanced graphics solutions that enable customers to understand and conquer their toughest computing problems. Headquartered in Mountain View, Calif., with offices worldwide, the company is located on the Web at http://www.sgi.com .

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