MANNO, SWITZERLAND and SEATTLE, WA -- (MARKET WIRE) -- 04/16/07 -- The Swiss National Supercomputing Centre (CSCS), which put Europe's first Cray XT3(TM) supercomputer into production in January 2006, has signed an agreement with Cray Inc. (NASDAQ: CRAY) to upgrade the system in order to meet growing demand for advanced scientific research and higher-resolution weather forecasts.

As previously announced, CSCS plans to use the system next year to run next-generation weather forecasts with two-kilometer resolution for MeteoSwiss. This will make Switzerland one of the first countries in Europe to move from the current standard forecast resolution of seven kilometers to the more accurate two-kilometer resolution. In addition, the upgraded Cray supercomputer will be used to support Switzerland's scientific research community in disciplines including chemistry, engineering sciences, environmental science, life science, materials science, physics and other fields.

"We look forward to helping produce more detailed weather forecasts for Switzerland's Alpine topography for the first time," according to CSCS co-Director Dr. Marie-Christine Sawley. "In addition, the enhanced performance of the Cray supercomputer will enable Swiss researchers to continue achieving important scientific breakthroughs and will also make CSCS an attractive partner for high-value, high-profile collaborations within Europe and beyond."

The supercomputer's peak performance will nearly triple from the current 8.5 teraflops (trillion floating point operations per second) to an aggregate 22.8 teraflops. This upgrade will make the CSCS system one of the most powerful installations in the world. The supercomputer upgrade will happen in two phases. In the first phase, the centre's Cray XT3 supercomputer will be upgraded with dual-core AMD Opteron(TM) processors. In the second phase, a fully compatible Cray XT4(TM) supercomputer will be added to the system.

"We are very excited about CSCS' decision to upgrade their Cray supercomputer a second time in less than a year. This is in direct response to the huge demand of scientific users for this system and all the new possibilities it has opened up for scientific research in Switzerland," said Ulla Thiel, vice president of Cray Europe. "With this upgrade and the large-scale usage of the system, CSCS will be one of the most advanced centres in Europe that are committed to enabling true capability computing."

About the Cray XT4 Supercomputer

Building on the success of the Cray XT3 system, the Cray XT4 is a massively parallel processor (MPP) supercomputer purpose-built to deliver exceptional sustained application performance for challenging scientific and engineering problems. The supercomputer's high-speed 3D torus interconnect, advanced MPP operating system and high-speed global input/output make it possible for users to scale applications from 200 to more than 30,000 processors without performance loss. The system's scalable processing element uses x86 64-bit AMD Opteron single- or dual-core processors that employ HyperTransport(TM) technology to increase bandwidth and reduce latency. Go to www.cray.com/products/xt4/index.html for more information.

About CSCS

CSCS is the Swiss National Supercomputing Centre, providing, developing and promoting technical and scientific services for the Swiss research community in the fields of high-performance and high-throughput computing. An autonomous unit of ETH Zurich, CSCS was created in 1991 to provide leadership-class computing for high-end science nationwide and to support breakthrough science, academic partnerships and world-class connectivity.

About Cray Inc.

As a global leader in supercomputing, Cray provides highly advanced supercomputers and world-class services and support to government, industry and academia. Cray technology enables scientists and engineers to achieve remarkable breakthroughs by accelerating performance, improving efficiency and extending the capabilities of their most demanding applications. Cray's Adaptive Supercomputing vision will result in innovative next-generation products that integrate diverse processing technologies into a unified architecture, allowing customers to surpass today's limitations and meeting 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. There are certain factors that could cause Cray's execution plans to differ materially from those anticipated by the statements above. Among these are the technical challenges of developing high performance computing systems, including potential delays in development projects; reliance on third-party suppliers, including delays in availability of qualified parts from suppliers; timing of and successful porting of application programs to new computing systems; successful passing of acceptance tests, including ability to scale systems to targeted levels of performance; and timing and level of government support for supercomputer purchases. For a discussion of these and other risks, see "Risk Factors" in Cray's most recent Annual Report on Form 10-K filed with the SEC.

Cray is a registered trademark, and Cray XT3 and Cray XT4 are trademarks, of Cray Inc. AMD, AMD Opteron and combinations thereof are trademarks of Advanced Micro Devices, Inc. HyperTransport is a licensed trademark of the HyperTransport Technology Consortium. All other trademarks are the property of their respective owners.

CSCS:
Dr. Marie-Christine Sawley
+41 91 610 8201
sawley@cscs.ch

Cray/Media:
Steve Conway
+1 651-592-7441
sttico@aol.com

Cray/Investors:
Victor Chynoweth
+1 206-701-2094
vic@cray.com