To HPCwire Readers:

The year 2000 was a period of momentous progress as Cray positioned itself for long-term industry leadership and profitable growth.

The acquisition of the Cray Research assets from SGI closed out Tera Computer's history as a development-stage company. On April 1, the combined entity began operating under the globally recognized Cray brand name.

• Revenue and growth potential increased dramatically when the Tera MTA development program (renamed the Cray MTA) was joined by the successful Cray T3E and Cray SV1 supercomputer products, along with the next-generation Cray SV2 initiative.
  
  
• With Cray Research came a substantial worldwide installed base of supercomputer systems, as well as valuable customer relationships and multi-year service contracts.
  
  
• Even more important for long-term leadership, Cray has amassed the world's highest concentration of supercomputer-related talent, experience and technologies by uniting the Tera and Cray Research businesses.

During the nine months of year-2000 combined operations, we renewed customer relationships that in some cases had been dormant for years while Cray Research was a business unit of SGI. Customers have rewarded this initiative with growing confidence and orders: large Cray T3E contracts; orders from industrial leaders such as Ford, Phillips Petroleum and Peugeot-Citroën; contracts with upgrade options for future Cray SV1ex and Cray SV2 systems; and the first orders for our all-CMOS Cray MTA-2 product.

During this period, Cray also made substantial R&D investments to produce enhanced versions of the current Cray T3E and Cray SV1 product lines, and to advance the development of the Cray MTA-2 and Cray SV2 flagship programs.

After the close of the year, we announced two additional revenue growth opportunities: the Cray SuperCluster series, a high-end cluster product slated for 2001 availability, and an expected long-term agreement to market NEC high-end vector supercomputers worldwide alongside our own.

In an era of commodity systems inefficient at real-world computing, Cray is dedicated to helping customers conquer the most demanding, most crucial computing problems and workloads on the planet.

Sincerely,

James E. Rottsolk
Chairman, President and Chief Executive Officer