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June 18, 2002

“Red Storm” supercomputer slated for 2004

Sandia entering into negotiations with Cray Inc. for $90 million supercomputer partnership

ALBUQUERQUE, N.M. — Following a competitive selection process the National Nuclear Security Administration’s (NNSA) Sandia National Laboratories has announced that it will enter into negotiations with Cray Inc. (NASDAQ NM: CRAY) for a multiyear project, valued at approximately $90 million, to develop and deliver a new massively parallel processing (MPP) supercomputer named “Red Storm.” The contract for the project is expected to be completed within a month. Further details will be available at that time.

Sandia is a multiprogram laboratory operated by Sandia Corporation, a Lockheed Martin Company, for the United States Department of Energy’s National Nuclear Security Administration under contract DE-AC04-94AL85000. With main facilities in Albuquerque, N.M., and Livermore, Calif., Sandia has major research and development responsibilities in national security, energy and environmental technologies, and economic competitiveness.

Sandia media contact: Neal Singer, nsinger@sandia.gov, (505) 845-7078

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