The objective of the technology development initiative is to design a supercomputing architecture that dramatically lowers the total cost of ownership for cloud computing data centers. Cray's custom engineering group will design a system infrastructure that combines super efficient power delivery, high-density packaging and innovative cooling technologies. This solution is intended to significantly reduce facility, power and hardware costs.

"This is an ideal project for our custom engineering group as it allows us to leverage our company's intellectual property in system design and, most specifically, packaging and system infrastructure," said Chuck Morreale, Cray's vice president of custom engineering. "In addition to being an important opportunity for Cray, the results of the project have the potential to deliver significant cost savings for operating a cloud computing data center. We are excited to be working with Microsoft, and we are eager to apply our proven, industry-leading expertise to this project."

"Our goal is to work with partners such as Cray to accelerate changes in system designs for next-generation data centers," said Christian Belady, Director of Hardware Architecture in Microsoft's Extreme Computing Group. "Ultimately, our mission is to dramatically reduce total cost of ownership while significantly boosting performance."

Cray's custom engineering group delivers "technology-led" professional services. The group designs and delivers customized computing, data management and consulting solutions developed specifically to fit the individual needs of the customer. Cray is an innovation-driven company, and the custom engineering group provides customers with the ability to leverage Cray's research and development expertise and more than 25 years of broad supercomputing experience to develop unique solutions when currently available technology will not achieve a customer's requirements.

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 design and deliver a cloud computing solution that significantly reduces the total cost of ownership for cloud computing data centers with super efficient power delivery, high-density packaging and innovative cooling technologies. 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 research and development efforts in a timely fashion or at all 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 of Cray Inc.

Contacts:

Cray Media:
Nick Davis
206/701-2123
pr@cray.com

Cray Investors:
Paul Hiemstra
206/701-2044
ir@cray.com

SOURCE: Cray Inc.

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