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Department of Defense High Performance Computing Modernization Program Awards More Than $40 Million in Contracts to Cray

SEATTLE, WA -- (Marketwired) -- 02/11/14 -- Global supercomputer leader Cray Inc. (NASDAQ: CRAY) today announced that the Company has been awarded two supercomputing contracts totaling more than $40 million to provide the Department of Defense (DOD) High Performance Computing Modernization Program (HPCMP) with three Cray® XC30™ supercomputers and two Cray® Sonexion® storage systems.

Cray will deliver a Cray XC30 supercomputer and a Cray Sonexion storage system to the U.S. Air Force Research Laboratory (AFRL) located at the Wright Patterson Air Force Base in Ohio. Cray will also deliver two Cray XC30 supercomputers and a Cray Sonexion storage system to the Navy DOD Supercomputing Resource Center (Navy DSRC) located at the Stennis Space Center in Mississippi.

"Supercomputing is a critical enabler for the wide variety of science, technology, test, evaluation, and acquisition engineering communities that the DOD HPC Modernization Program supports," observed John West, director of the DOD's High Performance Computing (HPC) Modernization Program. "These new systems are a key component of our strategy of making sure the DOD's scientists and engineers have access to the most modern, capable, and usable computational tools available. We are especially pleased that the successful completion of this purchase marks the realization of the potential value of our streamlined process for large system acquisition, with benefits for both the government and our commercial partners."

In operation for more than 20 years, the DOD HPCMP remains focused on its mission to accelerate technology development and transition into superior defense capabilities through the strategic application of high performance computing (HPC), networking and computational expertise. The HPCMP provides the people, expertise and technologies that increase the productivity of the DOD's Research, Development, Test and Evaluation community.

"The DOD High Performance Computing Modernization Program shares a number of the same attributes as our company -- both organizations are technology-driven, innovation-focused and committed to providing researchers and engineers with advanced supercomputing technologies for taking on important missions," said Peter Ungaro, president and CEO of Cray. "Cray has a long, proud history with the HPCMP, and we are honored that our flagship Cray XC30 supercomputers and Sonexion storage systems will play a vital role in this important program."

The Air Force and Navy chose to deploy the Cray Sonexion scale-out Lustre® storage system, which reduces time to results and simplifies Lustre integration and management. Cray will deliver more than six petabytes of storage capacity and more than a third-of-a-terabyte per-second of storage performance across both storage systems. 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 supercomputers are Cray's most advanced HPC systems and are engineered to meet the performance challenges of today's HPC users. The Cray XC30 and Cray® XC30-AC™ supercomputers feature the unique 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.

Additional information on the Cray XC30 supercomputer and Cray Sonexion storage system can be found on the Cray website.

The systems associated with these two contracts are expected to be delivered and installed in 2014.

About the DOD High Performance Computing Modernization Program (HPCMP)
The HPCMP provides Department of Defense supercomputing capabilities, high-speed network communications and computational science expertise that enable DOD scientists and engineers to conduct a wide-range of focused research, development and test activities. This partnership puts advanced technology in the hands of U.S. forces more quickly, less expensively, and with greater certainty of success. Today, the HPCMP provides a complete advanced computing environment for the DOD that includes unique expertise in software development and system design, powerful high performance computing systems, and a premier wide-area research network. The HPCMP is managed on behalf of the Department of Defense by the U.S. Army Engineer Research and Development Center.

For more information, please visit the DOD HPCMP website at: www.hpc.mil.

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 systems required by the DOD HPCMP when required and that meet the DOD HPCMP'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 systems required by the DOD HPCMP are not delivered in a timely fashion or do not perform as expected and such other risks as identified in the Company's quarterly report on Form 10-Q for the quarter ended September 30, 2013, 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 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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