Tera Computer Company Closes Cray Acquisition and Renames Company Cray Inc.; Company's Nasdaq Ticker Symbol to Change to CRAY

Business Wire, April 4, 2000

Business Editors

SEATTLE--(BUSINESS WIRE)--April 4, 2000

Tera Computer Company (Nasdaq NM: TERA), a leading designer of high-performance computer systems, announced today that it has closed its acquisition of the Cray vector supercomputer business unit, and the Cray brand name from SGI (NYSE: SGI). The definitive agreement to acquire Cray was previously announced on March 2, 2000. The acquisition was made in exchange for $15 million in cash, one million shares of unregistered common stock and a nine-month promissory note in the amount of $36.3 million subject to adjustment upon final audit.

A large portion of the principal amount of the promissory note represents service revenue that has been prepaid to SGI. Tera has assumed the liability of performing those services and SGI will pay out (reimburse) that prepaid revenue to Tera on a monthly basis as those services are performed. Subject to final adjustments, the value of these prepaid service revenues is estimated to be approximately $22 - $28 million, practically all of which are scheduled to be paid out in the first 12 months.

The Company has been renamed Cray Inc., and has applied to Nasdaq to have its NM ticker symbol changed from TERA to CRAY.

"The re-emergence of Cray as an independent company represents the start of a new chapter in high performance computing. I am proud to be part of this exciting company and look forward to leveraging the many talents of our employees," said Jim Rottsolk, Tera president and chief executive officer. "Cray Inc. has the world's foremost supercomputing technology, R&D, manufacturing, sales and service capabilities. We are focused on bringing the best technology and product solutions to supercomputing customers throughout the world."

About Cray Inc.

Cray Inc., formerly Tera Computer Company, designs, builds and sells high-performance vector processor and general-purpose parallel computer systems. The company has leading edge technology, multiple product platforms, annual revenues of over $200 million, nearly 900 employees, a $2 billion installed base of over 600 computers worldwide, major manufacturing and service capabilities, and extensive global customer relationships. Cray believes its Multithreaded Architecture and Cray SV2 systems together represent the future of supercomputing. For more information about Cray and its MTA systems, including a video presentation -- "Understanding the Tera MTA" -- which can be obtained from Cray or downloaded from Cray's web site, contact Cray Inc. at 411 First Avenue South, Suite 600, Seattle, WA 98104-2860. Phone: 206/701-2000. Fax: 206/701-2500. E-mail: info@tera.com, or http://www.tera.com.

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 factors risks associated with building larger computer systems, necessary modifications to software and hardware systems 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 "Risk Factors" in Tera Computer's most recent SEC Form 10-K.