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Cray Awarded $39 Million Supercomputer Contract From the North-German Supercomputing Alliance (HLRN)

Dec 17, 2012 -- Global supercomputer leader Cray Inc. (NASDAQ: CRAY) today announced the Company has been awarded a $39 million contract from the North-German Supercomputing Alliance (HLRN) to deliver a distributed Cray XC30 supercomputing system, which will be operated at two sites -- the Zuse Institute Berlin (ZIB) and the High Performance Computing Center (RRZN) at Leibniz University in Hannover, Germany.

HLRN is an alliance amongst seven states in Northern Germany -- Berlin, Brandenburg, Bremen, Hamburg, Mecklenburg-Vorpommern, Niedersachsen, and Schleswig-Holstein -- that have combined resources and secured funding from the state governments and the German federal government to acquire the new Cray XC30 systems.

The HLRN sites in Berlin and Hannover plan to operate the Cray XC30 supercomputers as one combined system, providing universities and research centers in the northern states of Germany with a powerful petascale computing resource. Named "HLRN-III," the Cray XC30 supercomputing system will support advanced scientific research in a wide range of fields, including environmental research, climate and ocean modeling, physics, chemistry, bio-informatics, engineering, and fluid dynamics.

"Researchers in Northern Germany will soon benefit from a significant increase in computing power as a result of procuring the new HLRN-III system from Cray," said Prof. Dr. Thomas Rung, head of the Scientific Board of the HLRN. "The Cray XC30 offers a flexible computing architecture that will fulfill our need for advanced supercomputing technologies now and into the future. This is an exciting moment for the scientific community across the northern states of Germany."

"We are very excited that HLRN has turned to Cray to provide their researchers and scientists with an innovative supercomputing system that is designed to deliver breakthrough science with superior performance and scalability," said Dr. Ulla Thiel, Cray vice president, Europe. "With these large installations in Berlin and Hannover, Cray continues to strengthen its presence internationally and expand its coverage across the European HPC landscape."

Previously code-named "Cascade," the Cray XC30 supercomputer is Cray's most advanced high performance computing (HPC) system and is engineered to meet the performance challenges of HPC users. The Cray XC30 supercomputer features the new HPC-optimized Aries system interconnect; a new Dragonfly topology that frees applications from locality constraints; an innovative cooling system that utilizes a transverse airflow to lower customers' total cost of ownership; the next-generation of the scalable, high performance Cray Linux Environment that also supports a wide range of ISV applications; Cray's HPC optimized programming environment; and the ability to handle a wide variety of processor types including the Intel® Xeon® processors -- a first for Cray's high-end systems.

Consisting of products and services, the multi-year, multi-phase contract is valued at more than $39 million, and a vast majority of the system is expected to be delivered and put into production in 2013. As part of this contract, the HLRN-III system will also include a Cray storage solution, which will incorporate products from DDN and Hitachi Data Systems.

About HLRN
The North-German Supercomputing Alliance (Norddeutscher Verbund fr Hoch- und Hchstleistungsrechnen - HLRN) is a joint project of the seven North-German states of Berlin, Brandenburg, Bremen, Hamburg, Mecklenburg-Vorpommern, Niedersachsen, and Schleswig-Holstein, and was established in 2001. The HLRN alliance jointly operates a distributed supercomputer system hosted at Zuse Institute Berlin (ZIB) and at Regionales Rechenzentrum fuï½r Niedersachen (RRZN) at Leibniz University Hannover.

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 system required by HLRN when required and that meets HLRN'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 the system required by HLRN is not delivered in a timely fashion or does not perform as expected and such other risks as identified in the Company's quarterly report on Form 10-Q for the quarter ended September 30, 2012, 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 XC30 and Cray Linux Environment are trademarks of Cray Inc. Other product and service names mentioned herein are the trademarks of their respective owners.

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