SEATTLE, WA--(Marketwire - Jun 14, 2012) - Global supercomputer leader Cray Inc. (NASDAQ: [ CRAY ]) today announced that the Department of Defense High Performance Computing Modernization Program (DOD HPCMP) has awarded a contract to Cray to significantly upgrade the program's three existing Cray XE6 supercomputers. As part of the contract, Cray will also deliver a new Cray XE6m supercomputer to the Naval Research Laboratory in Monterey, California, which will be used by the organization's Marine Meteorology Division.

In 2010, Cray was awarded a contract to provide three Cray XE6 supercomputers to the DOD Supercomputing Resource Centers (DSRCs) at the U.S. Air Force Research Laboratory (AFRL) located at the Wright Patterson Air Force Base in Ohio, the Arctic Region Supercomputing Center (ARSC) in Fairbanks, Alaska and the U.S. Army Engineer Research and Development Center (ERDC) in Vicksburg, Mississippi. Under the terms of the contract Cray is announcing today, Cray will double the number of processor cores in each of the three systems by upgrading the Cray XE6 supercomputers to the AMD Opteron™ 6200 Series "Interlagos" processors. Additionally, Cray will combine these separate systems into one petascale supercomputer, which will be located at the DSRC at ERDC.

"Breaking through the challenges faced by the Department of Defense research, development, test, and evaluation communities requires increasingly powerful supercomputers in addition to the unique expertise that the HPCMP provides," said John E. West, director of the DOD HPCMP. "Cray has been a technology partner of the HPCMP for many years, and we look forward to continuing that relationship through the deployment of these systems."

"Our organization conducts a research and development program that's focused on improving the basic understanding of atmospheric processes, studying the effects of the natural environment on Naval weapons systems, and developing environmental forecasting systems for DOD users," said Dr. Jim Hansen, head of the Meteorological Applications Development Branch. "High performance computing is crucial to our work, and the Cray XE6m provides a unique opportunity to perform operational demonstrations of real-time advanced environmental prediction capabilities in support of US Navy Fleet exercises."

The upgrade to the three systems and the consolidation into one large Cray supercomputer, as well as the delivery of the Cray XE6m system to the Naval Research Laboratory, are expected to be completed later this year. The initial contract is valued at more than $16 million in product revenue and also includes separately priced options for multi-year maintenance service.

"The DOD's High Performance Computing Modernization Program plays a vital role in ensuring that the DOD's researchers and engineers are equipped with advanced supercomputing technologies, and Cray is honored to continue to be a major partner for this important program," said Peter Ungaro, president and CEO of Cray. "Upgrading these Cray XE6 systems, and ultimately combining them into one petascale supercomputer, is a great example of the approach we take in designing Cray supercomputers and the value we deliver to our customers. We strive to lower the total cost of system ownership for our customers by giving them the ability to easily upgrade and significantly expand their systems, which also reduces the environmental impact associated with replacing an entire supercomputer."

About HPCMP
The DOD HPCMP provides the DOD 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 US 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 DOD by the U.S. Army Engineer Research and Development Center in Vicksburg, Miss.

For more information, please visit the DOD HPCMP Web site at: [ www.hpc.mil ].

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 is designed to enable 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 is focused on delivering 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 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 upgrades, combine separate existing Cray systems into one Cray system and deliver a new Cray XE6m for 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 upgraded and combined system and Cray XE6m required by the DOD HPCMP are not delivered or completed 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 March 31, 2012, 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 is a registered trademark of Cray Inc. in the United States and other countries, and Cray XE6 and Cray XE6m trademarks of Cray Inc. Other product and service names mentioned herein are the trademarks of their respective owners.