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Cray Awarded $45 Million Supercomputer Contract From the National Nuclear Security Administration

SEATTLE, WA, Apr 01, 2010 (MARKETWIRE via COMTEX) --Global supercomputer leader Cray Inc. (NASDAQ: CRAY) today announced that it has signed a sub-contract with Los Alamos National Security, LLC to provide the National Nuclear Security Administration (NNSA) with a next-generation Cray supercomputer. Currently valued at more than $45 million, the multi-year, multi-phase contract can be expanded if the NNSA exercises an option for a future upgrade. The new system will create a new supercomputing platform, named Cielo, for the Advanced Simulation and Computing program at the NNSA.

The Cielo platform will support all three of the NNSA national laboratories, which include Los Alamos National Laboratory, Sandia National Laboratories and Lawrence Livermore National Laboratory. The NNSA will use the new supercomputing system to ensure the safety, security and effectiveness of the United States' nuclear stockpile, and will run the NNSA's largest and most demanding modeling and simulation workload.

"Cielo is being acquired and deployed by the NNSA's New Mexico Alliance for Computing at Extreme Scales (ACES). This is a joint partnership between Los Alamos National Laboratory and Sandia National Laboratories. Both Los Alamos and Sandia have a long history with Cray, going back to the very beginning of the supercomputing era," said John Morrison, High Performance Computing Division Leader at Los Alamos. "With the Cielo platform, that history continues with the next generation of capability computing in support of the U.S. nuclear security enterprise."

"Cielo is the culmination of a two year partnership between Sandia and LANL on ACES," said Sudip Dosanjh, Sandia co-director for ACES. "We look forward to working with Cray to create an order of magnitude increase in capability for key NNSA national security applications. Cielo will target extremely large problems that require production, petascale supercomputing."

"The NNSA plays a critical role in protecting the safety and security of our country, and we are quite proud that some of the organization's most critical scientific research will be done on a Cray supercomputer," said Peter Ungaro, Cray president and CEO. "We have had a great partnership with the NNSA including the development of Red Storm -- a collaboration that enabled the launch of our first Cray XT3 supercomputer. We are honored to be able to continue this important partnership and are encouraged that the NNSA laboratories share in the excitement around our next-generation 'Baker' supercomputer."

The next-generation Cray supercomputer will be housed at the Strategic Computing Complex at the Los Alamos National Laboratory and is expected to be delivered in the second half of 2010. Code-named "Baker," Cray's new supercomputing system will feature a new interconnect chipset known as "Gemini" and enhanced system software that improves the performance, productivity and reliability of the system. Cray's planned "Baker" supercomputer builds on the Cray XT system architecture found in the world's fastest supercomputer and improves it in every key dimension.

About the National Nuclear Security Administration

Established by Congress in 2000, NNSA is a semi-autonomous agency within the U.S. Department of Energy responsible for enhancing national security through the military application of nuclear science in the nation's national security enterprise. NNSA maintains and enhances the safety, security, reliability, and performance of the U.S. nuclear weapons stockpile without nuclear testing; reduces the global danger from weapons of mass destruction; provides the U.S. Navy with safe and effective nuclear propulsion; and responds to nuclear and radiological emergencies in the U.S. and abroad.

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 NNSA procurement in the second half of this year and that meet the NNSA'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 for the NNSA do not perform as expected and such other risks as identified in the Company's quarterly report on Form 10-K for the year ended December 31, 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 XT3, Baker, Gemini, and Cray XT are trademarks of Cray Inc. Other product and service names mentioned herein are the trademarks of their respective owners.

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SOURCE: Cray Inc.