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Cray Awarded $174 Million Supercomputer Contract From the National Nuclear Security Administration

SEATTLE, WA -- (Marketwired) -- 07/10/14 -- Global supercomputer leader Cray Inc. (NASDAQ: CRAY) today announced the Company has been awarded one of the largest contracts in Cray's history -- a $174 million deal to provide the National Nuclear Security Administration (NNSA) with a next generation Cray® XC™ supercomputer and a Cray Sonexion® storage system.

The next-generation Cray XC supercomputer will provide the NNSA with a world-class supercomputing system to advance the mission for the agency's stockpile stewardship program. The system, named "Trinity" by the NNSA, is a joint effort between the New Mexico Alliance for Computing at Extreme Scale (ACES) at the Los Alamos National Laboratory and Sandia National Laboratories as part of the NNSA Advanced Simulation and Computing Program (ASC). The new Cray supercomputer will be used to ensure the safety, security and effectiveness of the United States' nuclear stockpile.

"Both Los Alamos and Sandia have a long history with Cray, going back to the beginning of the supercomputing era and most recently with the Cielo platform," said Gary Grider, High Performance Computing Division Leader at Los Alamos. "That history continues with the Trinity platform that will provide next generation supercomputing in support of the U. S. nuclear security enterprise."

"We look forward to working with Cray to create a significant increase in supercomputing capability for key NNSA national security applications," said Bruce Hendrickson, Sr. Manager of the Extreme-scale Computing group at Sandia National Laboratories. "Trinity will target the largest and most demanding simulations for NNSA."

The Trinity system will support all three of the NNSA national laboratories, which include Los Alamos National Laboratory, Sandia National Laboratories and Lawrence Livermore National Laboratory. The NNSA's current supercomputer sited at Los Alamos is a Cray XE6™ system named "Cielo." The new Trinity system is expected to deliver more than eight times greater applications performance than the Cielo system.

"It is a real honor that one of the largest contracts in our Company's history has come from one of our most important customers," said Peter Ungaro, president and CEO of Cray. "Our partnership and collaboration with the NNSA has led to the development of groundbreaking supercomputing systems, including the Cray XT3 system that resulted from the Red Storm project. The NNSA has consistently deployed the world's most advanced supercomputing systems to support their critical mission of ensuring the health of our nation's nuclear stockpile. We couldn't be more proud that, once again, the NNSA has placed its trust in Cray to provide them with the computational tools needed to support their important mission."

Through a phased deployment, Cray will provide the NNSA with a multi-petaflop supercomputing system and a multi-petabyte Cray Sonexion storage system. The Trinity system will be a next-generation version of the Cray XC30™ supercomputer, and will include future Intel® Xeon® processors code-named "Haswell" and future Intel® Xeon Phi™ processors code-named "Knights Landing." Trinity will be located at Los Alamos National Laboratory.

"NNSA's selection of the Cray XC supercomputer, powered by future Intel Xeon and Intel Xeon Phi processors, will deliver great application performance for a wide set of codes while the binary compatibility between the processors will allow the NNSA to reuse existing codes," said Charles Wuischpard, vice president and general manager of Workstations and HPC at Intel. "Intel is excited to build upon our longstanding and successful collaboration with Cray to deliver this vanguard HPC system to the NNSA."

The Cray Sonexion storage solution at NNSA will include 82 petabytes of capacity and 1.7 terabytes per-second of sustained performance. Cray's Sonexion storage system combines Cray's Lustre® expertise with a unique design that allows scalability from five gigabytes per-second to more than a terabyte per-second in a single file system -- and performs optimally at scale. Management is simplified through an appliance design with all storage components including software, storage and infrastructure.

Previously code-named "Cascade," the Cray XC30 series of supercomputers is engineered to meet the performance challenges of today's most demanding high performance computing (HPC) users. The Cray XC30 and Cray XC30-AC™ supercomputers include: the Aries system interconnect; a Dragonfly network topology that frees applications from locality constraints; innovative cooling systems to lower customers' total cost of ownership; the next-generation of the scalable, high performance Cray Linux Environment supporting a wide range of applications; Cray's HPC optimized programming environment, and the ability to handle a wide variety of processor types.

Consisting of products and services, the multi-year, multi-phase contract is valued at more than $174 million in total, with substantial system acceptances expected to occur in both late-2015 and 2016.

About the National Nuclear Security Administration
Established by Congress in 2000, NNSA is a semi-autonomous agency within the U.S. Department of Energy responsible for enhancing national security through the military application of nuclear science. NNSA maintains and enhances the safety, security, reliability, and performance of the U.S. nuclear weapons stockpile without nuclear testing; works to reduce global danger from weapons of mass destruction; provides the U.S. Navy with safe and effective nuclear propulsion; and responds to nuclear and radiological emergencies in the U.S. and abroad.

About Cray Inc.
Global supercomputing leader Cray Inc. (NASDAQ: CRAY) provides innovative systems and solutions enabling scientists and engineers in industry, academia and government to meet existing and future simulation and analytics challenges. Leveraging 40 years of experience in developing and servicing the world's most advanced supercomputers, Cray offers a comprehensive portfolio of supercomputers and Big Data storage and analytics solutions delivering unrivaled performance, efficiency and scalability. Cray's Adaptive Supercomputing vision is focused on delivering innovative next-generation products that integrate diverse processing technologies into a unified architecture, allowing customers to meet the market's continued demand for realized performance. Go to www.cray.com for more information.

Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933, including, but not limited to, statements related to Cray's ability to deliver the system required by the NNSA when required and that meets the NNSA's needs. These statements involve current expectations, forecasts of future events and other statements that are not historical facts. Inaccurate assumptions and known and unknown risks and uncertainties can affect the accuracy of forward-looking statements and cause actual results to differ materially from those anticipated by these forward-looking statements. Factors that could affect actual future events or results include, but are not limited to, the risk that the system required by the NNSA is not delivered in a timely fashion or does not perform as expected, the risk that Cray is not able to successfully complete its planned product development efforts in a timely fashion or at all, the risk that processors planned for the next generation Cray XC system are not available or incorporated into the Cray XC system when expected or at all and such other risks as identified in the Company's quarterly report on Form 10-Q for the quarter ended March 31, 2014, and from time to time in other reports filed by Cray with the U.S. Securities and Exchange Commission. You should not rely unduly on these forward-looking statements, which apply only as of the date of this release. Cray undertakes no duty to publicly announce or report revisions to these statements as new information becomes available that may change the Company's expectations.

Cray and Sonexion are registered trademarks of Cray Inc. in the United States and other countries, and XC, XE6, XT3, XC30 and XC30-AC are trademarks of Cray Inc. Other product and service names mentioned herein are the trademarks of their respective owners.

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