News Highlights

Cray Inc. Announces 2008 Acceptance of the "Petaflops" Supercomputer at Oak Ridge National Laboratory

DARPA Milestone Passed, Goodwill Impairment Recorded and Additional Notes Repurchased

SEATTLE, WA, Jan 05, 2009 -- Global supercomputer leader Cray Inc. (NASDAQ: CRAY) today announced it received official notification of acceptance in late 2008 from Oak Ridge National Laboratory (ORNL) and the U.S. Department of Energy for the recently installed petaflops (quadrillion mathematical calculations per second) supercomputer. This system is expected to contribute approximately $100 million in revenue to the fourth quarter of 2008.

The latest upgrade to the Cray XT5 "Jaguar" supercomputer at ORNL has increased the system's computing power to a peak of 1.64 petaflops, making Jaguar the world's first petaflops system dedicated to open research. Scientists have already used the newly upgraded Jaguar to complete an unprecedented superconductivity calculation that achieved a sustained performance of more than 1.3 petaflops.

The project to build a petaflops machine was completed on time, on budget and exceeding the original scope. The Jaguar petaflops system is unique in the balance it represents among speed, power, and other elements essential to scientific discovery. Several design choices make it an excellent machine for computational sciences -- including unique Cray ECOphlex liquid cooling, more memory by almost a factor of three than any other machine, more I/O bandwidth, and the high-speed Cray SeaStar network developed specifically for very-high-performance computing.

Cray to Present at 11th Annual Needham Growth Stock Conference

SEATTLE, WA, Jan 02, 2009 -- Global supercomputer leader Cray Inc. (NASDAQ: CRAY) announced today that Peter Ungaro, Chief Executive Officer, will be presenting at the 11th Annual Needham Growth Stock Conference at the New York Palace Hotel. The Cray presentation will be held on Tuesday, January 6, 2009 at 11:00 a.m. EST.

The Cray presentation will be available to the public via live audio webcast. To listen to the webcast, go to the Investors section of the Cray website at http://investors.cray.com. An archived version of the webcast will be available on the Cray website for 90 days.