LinuxWorld Booth 1523

SGI and Turbolinux Announce Strategic Alliance

NEW YORK, January 31, 2001 - SGI (NYSE: SGI) today announced a new strategic alliance with Turbolinux, Inc., a leader in high-performance Linux® OS-based solutions. The alliance agreement includes an SGI equity investment in Turbolinux. In addition, SGI and Turbolinux will work closely in a number of areas, including engineering, distribution, business development and marketing.

"We're especially pleased to be working with Turbolinux," said Jan Silverman, vice president of Advanced Systems, SGI. "By working together in a number of strategic areas, we are confident that we will significantly advance Linux for high-end computing." The two companies are also discussing joint research and development projects, including high-performance computing and management software for high-density computing.

"SGI is an important partner for Turbolinux on Intel next-generation computing platforms as well as in the areas of high-performance computing," said Jerry Greenberg, senior vice president of marketing, Turbolinux. "SGI is a technology innovator with proven results in many areas of interest to Turbolinux."

During the past year, SGI and Turbolinux have worked cooperatively on the Itanium™ for Linux project. At the LinuxWorld Conference & Expo in San Jose in August 2000, the two companies announced an agreement to incorporate breakthrough SGI™ Pro64™ compiler technology into the upcoming commercial release of Turbolinux® for the Itanium, for substantially increased Itanium performance on Linux. Both SGI and Turbolinux have aggressive Itanium roadmaps with proven expertise in this area.

About Turbolinux, Inc.
Founded in 1992, Turbolinux develops Linux OS-based software solutions for Internet and enterprise computing infrastructure, including reliable, available and scalable operating systems for workstations and servers and software clustering solutions for computing traffic management and peer-to-peer distributed computing. Backed by more than $95 million in investments from some of the world's leading technology companies, including Compaq, Dell, Fujitsu, Hitachi, IBM, Intel, NEC, Novell, Oracle, SGI and Toshiba, Turbolinux is headquartered near San Francisco with offices around the world. For more information, visit the Turbolinux Web site at www.Turbolinux.com.

About SGI
SGI is the world's leader in high-performance computing technology, dedicated to unleashing the power of human creativity. The company's systems, ranging from desktop workstations and servers to the most powerful supercomputers in the world, deliver advanced computing and 3D visualization capabilities to scientific, engineering and creative professionals and large enterprises. In addition, SGI creates innovative software for design, Internet and entertainment applications. SGI provides solutions in several key industries, including manufacturing, government, entertainment, communications, energy, the sciences and education. For more information, visit www.sgi.com/linux.

Silicon Graphics is a registered trademark and SGI, Pro64 and the SGI logo are trademarks of Silicon Graphics, Inc.
Turbolinux is a registered trademark of Turbolinux, Inc.
Itanium is a trademark of Intel Corporation.
Linux is a registered trademark of Linus Torvalds.
All other trademarks mentioned herein are the property of their respective owners.