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Cray Inc. Wins Cray X1 Supercomputer Order for U.S. Army Space and Missile Defense Command

SMDC And Cray Will Collaborate On Higher-Resolution Results For Aerodynamics And Other CFD Applications

SEATTLE--(BUSINESS WIRE)--April 20, 2004-- Global supercomputer leader Cray Inc. (Nasdaq NM:CRAY) today announced that it has received an order for a Cray X1(TM) supercomputer system from Madison Research Corporation for the U.S. Army Space and Missile Defense Command (SMDC). Financial and other terms were not disclosed.

The Cray X1 supercomputer system is scheduled to be installed second-quarter 2004 at SMDC's Simulation Center in Huntsville, AL., where it will be used to support SMDC's global missions. Madison Research Corporation is the prime contractor that operates SMDC's Simulation Center. Funding is through the U.S. Department of Defense's High Performance Computing Modernization Program, Cray officials said.

According to Cray Chairman and CEO Jim Rottsolk, SMDC and Cray will collaborate in evaluating the Cray X1 system's ability to produce higher-resolution results using computational fluid dynamics (CFD) codes. The codes are used to generate aerodynamics models for a wide range of missile configurations, and for simulating phenomena such as jet and shock interactions, combustion modeling, and propulsion flow.

"We are very pleased that SMDC researchers will have access to the power of Cray's latest high performance computing system," Rottsolk said. "Entering into an important new collaboration with this long-time customer is another step in our long term growth strategy." SMDC currently operates a Cray SV1(TM) supercomputer system.

About Madison Research Corporation

MRC is a full-service engineering services and information technology company founded in 1986. Mr. John L. Stallworth, President and CEO, directs MRC's operations from the corporate headquarters in Huntsville, AL. Our current staff of over 650 people is located in Huntsville, at six satellite offices throughout the South, and on-site at 29 Government facilities nation-wide. MRC applies its core competencies of systems acquisition, system sustainment, software engineering, and information systems to meet the diverse needs of a growing customer base of Government agencies (DoD, NASA, DOE, the States of Alabama and Tennessee, EPA, and the US Department of Health and Human Services) and leading commercial companies. For more information, visit the MRC web site at www.madisonresearch.com.

About the Space and Missile Defense Command

SMDC, as the Army Service Component to USSTRATCOM, conducts space operations and provides planning, integration, control and coordination of Army forces and capabilities in support of USSTRATCOM missions; serves as proponent for space and ground-based midcourse defense and as Army operational integrator for global missile defense; conducts mission related research, development, and acquisition in support of Army Title 10 responsibilities and serves as the focal point for desired characteristics and capabilities in support of USSTRATCOM missions.

About Cray Inc.

Cray's mission is to be the premier provider of supercomputing solutions for its customers' most challenging scientific and engineering problems. Go to www.cray.com for more information about the company.

Safe Harbor Statement

This press release contains forward-looking statements. There are certain factors that could cause Cray's execution plans to differ materially from those anticipated by the statements above. These include Cray's ability to pass acceptance tests and general economic and market conditions. For a discussion of these and other risks, see Cray's Annual Report on Form 10-K filed with the SEC on March 12, 2004.

Cray is a registered trademark, and Cray X1 and Cray SV1 are trademarks, of Cray Inc. All other trademarks are the property of their respective owners.

CONTACT: Cray Inc.
Media:
Lori Kaiser, 206-701-2233
lkaiser@cray.com
Investors:
Victor Chynoweth, 206-701-2280
victorc@cray.com

SOURCE: Cray Inc.