Cray CX1 Supercomputer With Windows HPC Server 2008 and Intel Xeon Processors Starts at $25,000 and Provides "Ease-of-Everything" for New Users of HPC

SEATTLE, WA and REDMOND, WA -- (Marketwire) -- 09/16/08 -- Supercomputer leader Cray Inc. (NASDAQ: CRAY) and Microsoft Corporation (NASDAQ: MSFT) today introduced the new Cray CX1 supercomputer pre-installed with Windows HPC Server 2008. With U.S. list prices starting at $25,000 to over $60,000, "ease-of-everything" features and the ability to fit into standard office environments and workflows, the new product reflects Microsoft and Cray's shared goal to drive high productivity computing farther into the mainstream in a broad array of markets including financial services, aerospace, automotive, petroleum, life sciences, government, academic and digital media.

Studies released by the Council on Competitiveness and the Defense Advanced Research Projects Agency (DARPA) found that nearly all large firms using HPC consider it indispensable for their ability to compete and survive, but smaller companies, as well as workgroups and departments in larger firms, have been hampered by the cost of HPC systems and a lack of access to in-house experts to help them use these systems.

The Cray CX1 supercomputer was designed from the ground up to address these barriers. It is the most affordable supercomputer ever offered by Cray and is designed to be easy to purchase, deploy, operate and upgrade. Purpose-built for offices, laboratories and university departments, the Cray CX1 is the world's highest-performing computer that uses standard office power.

The Cray CX1 product incorporates up to 8 nodes and 16 Intel Xeon processors, either dual or quad core; delivers up to 64 gigabytes of memory per node; and provides up to 4 terabytes of internal storage. Systems can be configured with a mix of compute, storage and visualization blades to meet customers' individual requirements. The quiet, deskside supercomputer features Windows HPC Server 2008 and interoperates with Linux. A three-year warranty with next-day, on-site Cray-certified support is standard.

"Windows HPC Server 2008, in combination with the Cray CX1 supercomputer, will provide outstanding sustained performance on applications," said Vince Mendillo, director, HPC at Microsoft Corp. "This combined solution will enable companies in various sectors to unify their Windows desktop and server workflows. Many Microsoft financial services customers, for example, want to unify back-office modeling and simulation with the work of front-office trading desks."

"IDC research shows that HPC has been one of the highest-growth IT markets during the past five years and the segment for HPC systems priced below $100,000 is headed for continued growth," said Earl Joseph, IDC's HPC program vice president. "The Cray HPC brand name and experience, combined with Microsoft's strategy of extending the familiar Windows environment upward to the server level, gives the Cray CX1 solution strong potential for exploiting the anticipated growth of this market segment."

"Cray sees Microsoft Windows becoming an increasingly important force in the HPC market," said Ian Miller, senior vice president of sales and marketing at Cray.