Press release

Silex Media Set to Leverage SGI's Media Assets in Europe

New enterprise created out of SGI's European Broadcast Division

Las Vegas, April 25 2006: For Immediate Release

Top executives from SGI's Broadcast Business Unit in Europe are to spin off from Silicon Graphics, Inc. (OTC: SGID) to form an independent company, Silex Media. This follows an earlier announcement today from SGI.

Silex Media will incorporate the existing Silicon Graphics Broadcast Europe team, with Stephan K. Schindler, currently the unit's General Manager, as CEO. The move is being carried out with the 100% financial backing of SGI Japan, a US$200 million company in its own right, which executed a similar move four years ago, and recently received financial backing from Sony Corporation.

Silex Media, which will continue to work closely with SGI, aims to offer IT-based broadcast solutions and systems integration services to European media broadcasters seeking to exploit data-centric media workflows.

"We are a team of cross-media experts with deep broadcast knowledge," says Schindler. "We can deploy industry-leading capabilities on broadcast/IT convergence, HD, media asset management and content delivery."

He adds that Silex Media will be best placed to adopt a more flexible approach to designing ‘best of breed' solutions, while still being able to call on the full range of SGI products, especially its range of open and scalable server and storage solutions.

"Customers are looking for effective and efficient solutions which require a high degree of optimization and integration," says Schindler. "Silex Media will be able to deploy technology developed in-house which is not available from other solutions providers. We combine an in-depth knowledge of advanced IT with profound understanding of broadcast specific business needs, workflows and technology."

The level of investment in Silex Media will enable the company to significantly increase its product portfolio, attract additional investors and to take on prime contractor roles.

The new company will have a presence in the UK, Germany, France, Denmark and the Netherlands. The Silex Media team, as Silicon Graphics Broadcast Europe, has been responsible for more than 20 major broadcast installations in Europe, including Danish Broadcasting Corporation (DR), SWR, SR, CIRIS, Czech TV, France Télévisions Group and Red Bee Media (formerly BBC Broadcast). These will continue to be supported by SGI, working through Silex Media.

The CEO of SGI Japan, Norio Izumi, adds: "I truly welcome the initiative of the Silicon Graphics Broadcast Europe team to become a separate company, Silex Media. The skilled and motivated team of people under Stephan Schindler has a track record of delivering major projects at some of Europe's most important broadcasters. The synergy of the European and Japanese media markets, and the tight collaboration between Silex Media and SGI Japan, offers us many exciting possibilities together. It is my expectation that the convergence of advanced European full digital technology and SGI Japan's HD technology will enable the two companies to attain a position among the strongest SI suppliers for the broadcast media market."

"Sony cordially welcomes the establishment of Silex Media with the technological basis of Silicon Graphics, Inc. that has a lot of accomplishments in the European broadcast/media market. In order to ensure convergence of media technology of Sony and IT expertise of SGI Japan and Silex Media, we will intensively collaborate with SGI Japan." Says Mitsuru Ohki, EVP, Corporate Executive, President B&P Business Group of Sony Corporation.

Existing SGI customers are equally enthusiastic. "We selected SGI for their technology and broadcast expertise," says Phillip Maher, CTO of CIRIS in the Netherlands. "This has resulted in an advanced and successful CIRIS Dynamic Platform. We look forward to working with Silex Media, and are confident this will enable us to continue and expand our services based on open and best-of-breed solutions".

About Silex Media

Silex Media, in formation in April 2006, comprises people, resources and know-how from SGI's Broadcast Business Unit in Europe. Silex Media will have offices throughout Europe and is 100% backed by SGI Japan. Silex Media concentrates on delivering IT-based solutions, systems integration and workflow services to broadcasters in Europe. Silex Media's highly-integrated, data-centric solutions address such areas as digital news production, server-based editing for news and sports, play out automation and consolidation, content management and archive integration. The company website is www.silexmedia.com.

About SGI Japan

SGI Japan was established in 1987 as a wholly-owned subsidiary of Silicon Graphics, Inc. In 2001, it formed a strategic alliance with NEC and NEC Soft, including capital investment worth 60% of total stock issued. SGI Japan has deep experience of building digital archiving systems at key Japanese broadcasters such as NHK, and provides unique and comprehensive solutions, based on technology, experience and best practices accumulated since its establishment in the media sector. SGI Japan reinforces its business infrastructure as a global and hybrid business enterprise through partnerships, including capital investment from major Japanese business enterprises such as NEC, NEC Soft, Canon Marketing Japan and NIWS Co. In March 2006 SGI Japan formed a capital alliance with Sony Corporation to strengthen its broadcast media businesses. http://www.sgi.co.jp/company_info/english/

About Silicon Graphics

SGI, also known as Silicon Graphics, Inc. (OTC: SGID), is a leader in high-performance computing. SGI helps customers solve their computing challenges, whether it's sharing images to aid in brain surgery, finding oil more efficiently, studying global climate, providing technologies for homeland security and defense, enabling the transition from analog to digital broadcasting, or helping enterprises manage large data. With offices worldwide, the company is headquartered in Mountain View, Calif., and can be found on the Web at www.sgi.com.

Silex Media and Silex Media logo is a trademark of Silex Media GmbH in Germany and/or other countries worldwide. All other trademarks mentioned herein are the property of their respective owners.

For further information - or to arrange a meeting at NAB - please contact Winfred van Kuijk on +31-6-22243711, or visit the website at http://www.silexmedia.com.