Under the terms of the contract, Cray will provide three of its next generation supercomputing systems to top DoD Supercomputing Resource Centers located throughout the United States. These centers include the U.S. Air Force Research Laboratory (AFRL) located at the Wright-Patterson Air Force Base in Ohio; the Arctic Region Supercomputing Center (ARSC) in Fairbanks, Alaska; and the U.S. Army Engineer Research and Development Center (ERDC) in Vicksburg, Mississippi. The Cray supercomputers will be used to support basic and applied research, and product development and evaluation. These systems will help to protect the military through the development of new materials, fuels, armor and weapons systems, and assist long-term weather predictions to plan humanitarian and military operations throughout the world.

"To solve today's hardest research and development challenges, we have to employ leading-edge scalable software and the world's fastest supercomputers," said Mr. Cray Henry, director of the DoD's HPCMP. "We are excited to get the next generation Cray supercomputers working to solve our problems."

The three Cray supercomputers included in the 2010 DoD HPCMP procurement are expected to be delivered in the second half of this year, and will be the company's next generation supercomputing systems code-named "Baker." Featuring a new interconnect chipset known as "Gemini" and enhanced system software improving the performance, productivity and reliability of the system, Cray's planned "Baker" supercomputers build on the Cray XT system architecture of the world's fastest supercomputer and improve it in every dimension.

"We are incredibly honored that Cray supercomputers continue to play a prominent role in this important program," said Peter Ungaro, president and CEO of Cray. "As a result of this award, Cray will provide the DoD with the supercomputing tools necessary for its scientists and engineers to research, develop, test and evaluate breakthrough technologies that will strengthen our national security. This award not only reinforces our leadership position in high performance computing, it also speaks to the exciting potential of our upcoming 'Baker' system."

Cray previously received a DoD HPCMP award in 2008, and with the 2010 award, Cray will have supercomputing systems at five of the six DoD Supercomputing Resource Centers in the U.S.

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 is designed to enable 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 is focused on delivering 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 within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933, including, but not limited to, statements related to Cray's ability to begin commercial deliveries of its "Baker" supercomputers when expected and Cray's ability to deliver the systems required for the DoD HPCMP procurement in the second half of this year and that meet the DoD's needs. These statements involve current expectations, forecasts of future events and other statements that are not historical facts. Inaccurate assumptions and known and unknown risks and uncertainties can affect the accuracy of forward-looking statements and cause actual results to differ materially from those anticipated by these forward-looking statements. Factors that could affect actual future events or results include, but are not limited to, the risk that Cray is not able to successfully complete its planned product research and development efforts in a timely fashion or at all, the risk that the systems delivered to the DoD do not perform as expected and such other risks as identified in the Company's quarterly report on Form 10-Q for the period ended September 30, 2009, and from time to time in other reports filed by Cray with the U.S. Securities and Exchange Commission. You should not rely unduly on these forward-looking statements, which apply only as of the date of this release. Cray undertakes no duty to publicly announce or report revisions to these statements as new information becomes available that may change the Company's expectations.

Cray is a registered trademark, and Cray XT is a trademark of Cray Inc.

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SOURCE: Cray Inc.

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