SGI and Red Hat

[Raj Mathur <raju@xxxxxxx>]

SGI and Red Hat Bring Linux to the Enterprise Marketplace

   MOUNTAIN VIEW, CA and DURHAM, N.C. (August 2, 1999) -- SGI (NYSE: SGI)
   and Red Hat, Inc. today jointly announced that the companies have
   entered into an agreement to provide Red Hat® Linux® on SGI's products
   based on the Intel® microprocessor architecture. Under this license,
   SGI will install and distribute the SGITM Linux® Environment with Red
   Hat Linux on a number of the company's new and future products.
   
   The strategic alliance between SGI and Red Hat will ensure
   compatibility and reliability with all software written for the Linux®
   operating system, giving SGI's customers powerful enterprise computing
   solutions. SGI's expertise in system performance and customer support,
   together with Red Hat, will help make Linux a success in the corporate
   marketplace.
   
     "SGI has a long history of contributing innovation and technology
     to the open source community," said Bob Young, co-founder and CEO
     of Red Hat. "Together SGI and Red Hat will be able to expand Linux
     into enterprise markets with powerful and reliable solutions."
     
     "Our agreement with Red Hat will make Linux a robust,
     enterprise-class operating system giving SGI's customers the most
     reliable and scalable Linux solutions in the industry," said John
     R. "Beau" Vrolyk, senior vice president, Computer Systems Business
     Unit, SGI. "We are focused on delivering the best Linux product to
     our customers, beginning with today's introduction of the SGI
     1400L. SGI is committed to Linux and is contributing the company's
     technical leadership to the open source community with features
     such as improved multi-processing and journaling file systems."
     
   The Linux operating system is inherently stable and secure and can be
   used for a variety of purposes, including networking, software
   development and as an end-user platform. The reliability and price
   performance of Linux is being proven in today's IT departments for Web
   serving, file and print serving, database serving and software
   development. According to IDC, one in six servers now ships with Linux
   and the operating system is used by more than 15 million people. Linux
   is a cooperatively developed POSIX-oriented, multi-user,
   multi-tasking, open source operating system.
   
   This news release contains forward-looking statements regarding the
   strategic relationship between SGI and Red Hat Software and the
   development and production of SGI products incorporating Red Hat Linux
   which are subject to risks and uncertainties that could cause actual
   results to differ materially from those described in such statements.
   The reader is cautioned not to rely unduly on these forward-looking
   statements, which are not a guarantee of future performance. Such
   risks and uncertainties include the timely development, introduction
   and release of SGI's products incorporating Red Hat Linux, acceptance
   of Linux and Linux-based products by the markets and customers, the
   future performance of SGI's Linux-based products, SGI's dependence
   upon partners, the impact of competitive markets, products and
   pricing, the ability of SGI to manage a complex set of engineering,
   marketing and distribution relationships, and other risks detailed
   from time to time in SGI's most recent SEC reports on Form 10-Q and
   Form 10-K.
   
   About Red Hat Software
   
   Founded in 1994, Red Hat Software is based in Research Triangle Park,
   N.C., where it is a leader in the development of open source operating
   software solutions. Red Hat Development builds the most accessible and
   advanced operating system available anywhere with technical
   innovations such as RPM and the disk druid installation tool. Red Hat
   Linux is available for Intel, Compaq® AlphaTM
   and Sun® SPARC® platforms.
   
   About SGI
   
   SGI is a market leader in technical computing, offering the world's
   most powerful servers, supercomputers and visual workstations. SGI
   uniquely provides a broad range of high-performance computing and
   advanced graphics solutions that enable customers to understand and
   conquer their toughest computing problems. Headquartered in Mountain
   View, Calif., with offices worldwide, the company is located on the
   Web at www.sgi.com.
   
   SGI and the SGI logo are trademarks of Silicon Graphics, Inc. Linux is
   a registered trademark of Linus Torvalds. Red Hat is a registered
   trademark of Red Hat, Inc. Intel is a registered trademark of Intel
   Corporation. Sun is a registered trademark of Sun Microsystems, Inc.
   All SPARC trademarks are used under license and are trademarks of
   SPARC International, Inc. in the United States and other countries.
   Products bearing SPARC trademarks are based on architecture developed
   by Sun Microsystems, Inc. All other trademarks mentioned herein are
   the property of their respective owners.

   Copyright © 1999 Silicon Graphics, Inc. All rights reserved.
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