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Cray Wins Supercomputer Contract From the University of Stuttgart Valued at More Than $60 Million

SEATTLE, WA and STUTTGART, GERMANY, Oct 26, 2010 (MARKETWIRE via COMTEX) --

Global supercomputer leader Cray Inc. (NASDAQ: CRAY) today announced that the company has been awarded a contract from the University of Stuttgart to deliver a new supercomputer to the University's High Performance Computing Center Stuttgart (HLRS). The multi-year, multi-phase contract includes the delivery of a Cray XE6 supercomputer and the future delivery of Cray's next-generation supercomputer code-named "Cascade."

The new Cray system at HLRS will serve as a supercomputing resource for researchers, scientists and engineers throughout Europe. HLRS is one of the leading centers in the European PRACE initiative and is currently the only large European high performance computing (HPC) center to work directly with industrial partners in automotive and aerospace engineering. HLRS is also a key partner of the Gauss Centre for Supercomputing (GCS), which is an alliance of the three major supercomputing centers in Germany that collectively provide one of the largest and most powerful supercomputer infrastructures in the world.

"This is an exciting announcement for Cray on a number of fronts. HLRS has been an important partner of ours for many years, and this win in Germany continues to build on our momentum internationally," said Peter Ungaro, president and CEO of Cray. "HLRS' strong partnership with the automotive and aerospace industries is also important as we continue to expand our presence in these customer segments. Finally, this contract marks Cray's first order for our next-generation supercomputer code-named Cascade, which is another major milestone in delivering on our Adaptive Supercomputing vision. We are pleased to be working with HLRS and we look forward to delivering our supercomputing technology to its broad user community."

"HLRS and Cray have enjoyed a long history in ensuring our researchers and scientists are equipped with innovative supercomputing systems that are built with leading-edge supercomputing technology," said Prof. Dr. Michael Resch, director of HLRS. "Cray is just the right partner as we enter the era of petaflops computing. Together with Cray's outstanding supercomputing technology, our center will be able to carry through the new initiative for engineering and industrial simulation. This is especially important as we work at the forefront of electric mobility and sustainable energy supply."

Cray was awarded the multi-year, multi-phase supercomputer contract based on its ability to efficiently scale key software applications, its ability to easily upgrade future Cray systems, and its custom-designed interconnect and software environment.

"We are honored that the University of Stuttgart has awarded this supercomputer contract to Cray," said Dr. Ulla Thiel, Cray vice president, Europe. "This contract represents our largest supercomputer installation in Germany and we are proud to have been selected to deliver on the demanding needs of HLRS and its many users. We have enjoyed a successful, long-term relationship with HLRS and we are very excited that our joint collaboration will continue and grow even stronger in the future."

The Cray XE6 supercomputer combines Cray's current Gemini system interconnect with powerful AMD Opteron(TM) processors and is designed to bring production petascale computing to a new and expanded base of HPC users. Fully upgradeable from the Cray XT5 and Cray XT6 line of supercomputers, the Cray XE6 system delivers improved interconnect performance and features additional enhancements such as improved network resiliency, a mature and scalable software environment and the ability to run a broad array of ISV applications with the latest version of the Cray Linux Environment. This collection of industry-leading features provides Cray XE6 users with a supercomputing system that combines true scalable performance with production reliability.

Cray's next-generation Cascade supercomputer will feature a continuing evolution of the Cray Linux Environment, Cray's HPC-optimized programming environment, a next-generation interconnect chipset follow-on to Gemini and support for future Intel(R) Xeon(R) processors. The Cascade supercomputer is in part made possible by Cray's participation in the Defense Advanced Research Projects Agency's (DARPA) High Productivity Computing Systems program.

Consisting of products and services, the multi-year, multi-phase contract is valued at more than $60 million. The Cray XE6 supercomputer is expected to go into production in 2011. The second phase of the contract, the delivery of the Cascade system, is expected to be completed in the second half of 2013.

This contract is the second of the two large contracts previously disclosed by the Company as "in negotiations."

About HLRS

The High Performance Computing Center Stuttgart (HLRS) of the University of Stuttgart supports researchers and industry with leading edge supercomputing technology. Compute Services are supplied to industrial partners like Porsche and Daimler through the public-private partnership of hww GmbH. Collaborative research with the automotive industry goes through the Automotive Simulation Center Stuttgart (ASCS). In European, national, and industrial projects HLRS conducts basic and applied research in HPC focusing on programming methods and applications.

About University of Stuttgart The main emphasis of the University of Stuttgart with its 20,000 students is on engineering and the natural sciences. However, combining these areas with the humanities and the social sciences adds something special to its profile. Indicators of the excellent status are the two projects that were successful in the recent "Excellence Initiative" sponsored by both the Federal and the State governments. One project is the Cluster of Excellence "Simulation Technology" and the other, the Graduate School "Advanced Manufacturing Engineering." The research activities are concentrated around eight interdisciplinary areas, "Modeling and Simulation Technology," "New Materials," "Complex Systems and Communication," "Concepts of Technology and Technology Evaluation," "Energy and the Environment," "Mobility," "Integrated Product Design and Production Organization" as well as "Building and Housing." The University of Stuttgart is going to strengthen its research through interdisciplinary networks of cooperation in order to continue to expand the cutting-edge position in these fields.

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 deliver the systems required by HLRS when required and that meet HLRS' 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 the systems required by HLRS are not delivered in a timely fashion or do not perform as expected, the risk that Cray is not able to successfully complete its planned product development efforts or to ship the Cascade system within the planned timeframe or at all, the risk that the Cascade system will not have the features or components currently planned and such other risks as identified in the Company's quarterly report on Form 10-Q for the quarter ended June 30, 2010, 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. in the United States and other countries, and Cray XE6, Cascade, Gemini, Cray XT5, Cray XT6 and Cray Linux Environment are trademarks of Cray Inc. Other product and service names mentioned herein are the trademarks of their respective owners.

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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