SGI Files Patent Infringement Lawsuit Against ATI

MOUNTAIN VIEW, Calif., Oct. 23 /PRNewswire-FirstCall/ -- SGI (NASDAQ: SGIC) announced today that it has filed a patent infringement lawsuit against ATI Technologies Inc. in U.S. District Court -- Western District of Wisconsin.

In its Complaint filed today, SGI asserts that products in ATI's line of Radeon(R) graphics processors infringe U.S. Patent No. 6,650,327. The Complaint seeks unspecified damages and a Court Ordered injunction against future infringement by ATI.

"The Company's technology covered by the '327 patent is an important resource in achieving enhanced graphics processing demanded by today's computer systems," said Dennis McKenna, CEO of SGI. "SGI has licensed this technology to ATI's major competitors and, as I have previously been stating publicly, SGI intends to aggressively protect and enforce its IP. This is the first visible step in that process."

SGI - Innovation for Results(TM)

SGI delivers a complete range of high-performance server and storage solutions along with industry-leading professional services and support that enable its customers to overcome the challenges of complex data-intensive workflows and accelerate breakthrough discoveries, innovation and information transformation. SGI helps customers solve their computing challenges whether it's enhancing the quality of life through drug research, designing and manufacturing safer and more efficient cars and airplanes, studying global climate, providing technologies for homeland security and defense, 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.

This news release contains forward-looking statements relating to future events. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Risks are detailed from time to time in SGI's periodic reports that are filed with the Securities and Exchange Commission, including SGI's annual report on Form 10-K for the year ended June 30, 2006. SGI is under no obligation to publicly update or revise any forward-looking statements, whether changes occur as a result of new information, future events or otherwise.

NOTE: SGI, the SGI cube and the SGI logo are registered trademarks of SGI in the United States and/or other countries worldwide. All other trademarks mentioned herein are the property of their respective owners.

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