To: Ms. Baby Boomer who wrote (8885 ) 5/30/2001 12:19:35 PM From: Ms. Baby Boomer Read Replies (1) | Respond to of 14451 Message to Our Stakeholders To Our Stakeholders: In today's ultracompetitive environment, focusing on what you do best and where you add value to your customers is critical to ensure a successful future. Since the fall of 1999, SGI has followed that course by rededicating itself to the mission of being "the world's leader in high-performance computing and visualization solutions." Today, SGI offers the world’s largest and most scalable supercomputing systems that run the most complex computing challenges imaginable for our blue-chip list of customers, which includes Fortune 500 companies, governments, and leading research institutions around the world. The company also continues its pioneering heritage in visualization solutions with its state-of-the-art SGITM Reality CenterTM facilities, which are expanding boundaries in the emerging world of collaborative visualization. Over the past few months, we have accelerated initiatives to strengthen our commitment to that mission and improve our business processes and operational efficiencies. Those initiatives include simplifying our distribution strategy, launching a new ERP system, trimming our product line, and realigning and focusing our R&D and human resources. In addition, we have streamlined and strengthened our marketing and sales organizations to more aggressively communicate our story and build strong customer relationships. What does all of this mean? It means SGI is building a more efficient and financially healthy company that is focused on the solutions that are important to our customers. And it means the organization will be more responsive to meeting the needs of our customers in the future. We look forward to keeping you updated on the exciting changes that are happening at SGI and how our customers will benefit from their partnership with us. Sincerely, Hal Covert President and Chief Financial Officer216.32.174.40