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To: J Fieb who wrote (1872)	3/2/2000 3:55:00 PM
From: Gus	Read Replies (1) \| Respond to of 4808

And Tera catches the lateral pass.... Silicon Graphics to sell Cray supercomputer line MOUNTAIN VIEW, Calif., March 2 (Reuters) - Silicon Graphics Inc. (NYSE:SGI - news) said on Thursday it would sell its Cray vector supercomputer business, one of the most noted names in the computer industry, to far smaller Tera Computer Co. (NasdaqNM:TERA - news). Silicon Graphics, which makes powerful computer workstations used for animating movies, said in a statement that it would sell the Cray business for cash, notes and common stock. Further financial details were not disclosed. The sale is expected to close in 60 days. Tera would assume ownership of Silicon Graphics's Cray supercomputer product line, existing service contracts, future Cray vector products and three facilities in Chippewa Falls, Wis. Tera is expected to offer jobs to the roughly 800 Cray vector business employees. Supercomputers have long been used for heavy number-crunching tasks such as simulating explosions, thunderstorms and car crashes. Cray's products excelled at performing a single calculation at ultra-high speed on strings of numbers called vectors. Cray Research Inc. was founded in 1972 by legendary engineer Seymour Cray and was sold to Silicon Graphics in 1996 for $767 million. By contrast, Tera had 1999 third-quarter sales of only $849,835. Tera Computer Company to Acquire Supercomputer Pioneer Cray From SGI biz.yahoo.com IDC forecasts the total high-performance computing market as growing steadily from $5 billion this year to about $7.5 billion in 2003. The advent of Tera MTA supercomputers and the forthcoming Cray SV2 are expected to accelerate growth in the high-end capability market sector. Cray, Inc. systems can compete for much of the $2.5 billion growth in the HPC market and expand high-end market share by reclaiming applications for supercomputing that are now served by mid-range systems. Also, the Cray SV2 is expected to restore U.S. leadership in the field of weather and climate prediction, and reclaim market share from Japanese competition. Tera Computer to buy Cray from SGI-WSJ NEW YORK, March 2 (Reuters) - Troubled supercomputer maker Tera Computer Co. (NasdaqNM:TERA - news) is acquiring the much larger Cray Research from Silicon Graphics Inc. (NYSE:SGI - news) in a bid to rebuild the flagging industry, the Wall Street Journal said on Thursday. Terms of the cash, stock and notes deal were not disclosed, the Journal said. Seattle-based Tera said it would buy the business and brand name from Silicon Graphics and change its own name to Cray Inc. People familiar with the matter told the Journal that the deal is valued at less than $100 million, a fraction of the $740 million Silicon Graphics paid for Cray in 1996. Shares of Tera closed Wednesday at 11, while shares of Mountain View, Calif.-based Silicon Graphics closed at 10-1/8.