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Cray Wins Four of Five Department of Defense High Performance Computing Modernization Program Awards

Cray XT5(TM) Supercomputers to Enhance Military Research and Development Efforts

SEATTLE, WA, Feb 19, 2008 (MARKET WIRE via COMTEX News Network) -- Global supercomputer leader Cray Inc. (NASDAQ: CRAY) today announced that it has been awarded four of the five high performance computing (HPC) system awards by the Department of Defense (DOD) as part of its 2008 High Performance Computing Modernization Program (HPCMP) acquisition for large HPC systems. The contract, worth over $30 million including services, is one of the largest ever DOD HPCMP system awards to a single vendor. As part of the contract, Cray will provide four of its innovative and highly scalable Cray XT5(TM) systems to be located at top military research centers including the Army Research Laboratory, Naval Oceanographic Office and the Arctic Region Supercomputing Center.

"It's an incredible honor to play such a significant role in helping to ensure the continued strength of the military's research and development efforts," said Peter Ungaro, president and CEO of Cray. "The DOD's HPCMP is one of the longest-standing supercomputing programs in existence, having enabled major materials innovations, higher fidelity computer simulations, more efficient testing and the development of critical weapons systems. We value the opportunity to provide our systems in this capacity and look forward to continuing our partnership with the HPCMP into the future. The scalability, innovation and upgradeability that are uniquely characteristic of the Cray XT5 supercomputers will enable the DOD to continue to achieve the engineering and scientific breakthroughs that will strengthen our national security."

The Cray XT5 system is the world's most scalable Linux-based supercomputer combining unprecedented sustained application performance with exceptional manageability, lower cost of ownership and broad application and tools support to large supercomputer class machines. The Cray XT5 supercomputer delivers superior sustained application performance from a single cabinet to massive scale while offering lower power consumption, industry-leading high density packaging, innovative cooling technologies and a fully upgradeable path from Cray XT3(TM) and Cray XT4(TM) systems.

"Cray is a strong partner and we look forward to working together to tackle some of the most computationally complex problems our researchers face," said Cray Henry, director of the DOD's HPCMP. "We require industry-leading supercomputing technologies to enable the critical advances that allow us to accomplish our missions both at home and abroad."

About HPCMP

The HPCMP was initiated in 1992 in response to congressional direction to modernize the DOD laboratories' HPC capabilities. The HPCMP was assembled out of a collection of small high performance computing departments, each with a rich history of supercomputing experience that had independently evolved within the Army, Air Force, and Navy laboratories and test centers. The HPCMP provides the supercomputer services, high-speed network communications, and computational science expertise that enables the Defense laboratories and test centers to conduct a wide range of focused research, development, and test activities. This partnership puts advanced technology in the hands of U.S. forces more quickly, less expensively, and with a greater certainty of success.

About Cray Inc.

As a global leader in supercomputing, Cray provides highly advanced supercomputers and world-class services and support to government, industry and academia. Cray technology enables scientists and engineers to achieve remarkable breakthroughs by accelerating performance, improving efficiency and extending the capabilities of their most demanding applications. Cray's Adaptive Supercomputing vision will result in innovative next-generation products that integrate diverse processing technologies into a unified architecture, allowing customers to surpass today's limitations and meeting the market's continued demand for realized performance. 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. Among these are the technical challenges of developing high-performance computing systems, including potential delays in hardware and software development projects; reliance on third-party suppliers, including delays in availability of qualified parts from suppliers; Cray's ability to scale the system to the targeted level of performance; timing of and successful porting of application programs to new computing systems; and successful passing of acceptance tests. For a discussion of these and other risks, see "Risk Factors" in Cray's most recent Quarterly Report on Form 10-Q filed with the SEC.

Cray is a registered trademark, and Cray XT5, Cray XT3 and Cray XT4, are trademarks of Cray Inc.

Cray Media:
Erin McGhee
206/701-2107
pr@cray.com

Cray Investors:
Vic Chynoweth
206/701-2094
ir@cray.com

SOURCE: Cray Inc.

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