Alias in Acquisition Talks with Private Equity Firm

Toronto, Ontario – Alias, a Silicon Graphics Inc. (NYSE:SGI)company, today announced it is involved in exclusive discussions with aleading private equity investment firm for the acquisition of Aliasfrom SGI. Alias is the leading provider of 3D graphics technology andservices for the film, video, games, web, interactive media,automotive, industrial design, education and visualization markets.

“As an independent entity, Alias would be able to furtherexpand its business, extend customer value and create significantgrowth with its products and services,” said Doug Walker,president of Alias. “The investor believes that there is a greatpotential and synergy to having design and entertainment focusedproducts, services and customers. The new investor has been briefed indetail on our roadmap and is attracted to Alias precisely because ofour product and services portfolio.”

“This is an exciting time for Alias in its 20-yearhistory,” continues Walker. “Our ongoing goal is to exceedthe demands of our global design and entertainment customers whocontinue to push us to build the most innovative technology and servicesolutions – enabling them to unleash their creativity and bringtheir ideas to life.”

There will be no changes to the management team, organization,services, support or product availability as a result of thenegotiations or the sale of the business.

This press release contains forward looking statements relating tothe possible sale of Alias by SGI. SGI has not entered into anydefinitive agreements related to this transaction, and the transactionmay not occur or may occur on terms substantially different from thosedescribed in this press release. For a discussion of risk factorsrelevant to SGI’s businesses, please refer to SGI's periodicreports that are filed with the Securities and Exchange Commission,including SGI's quarterly report on Form 10-Q for the quarter endedDecember 26, 2003. We undertake no obligation to publicly update orrevise any forward-looking statements, whether changes occur as aresult of new information, future events or otherwise.

About Alias

As the world's leading innovator of 3D graphics technology, Aliasdevelops award-winning software, custom development and trainingsolutions for the automotive, film and video, games, web, interactivemedia, industrial design, education and visualization markets. In 2003,the company was awarded an Oscar for Technical Achievement from theAcademy of Motion Picture Arts and Sciences for its development of Mayasoftware, the professional 3D animation and effects package.

Alias also offers a powerful range of services for new to advancedusers in the most demanding environments. Learning Tools and training,support, and professional services help meet rigorous productiondeadlines. Entertainment customers include: Acclaim Entertainment,Inc., Digital Domain, Disney, Electronic Arts, Industrial Light &Magic, Factor 5 LLC, Midway Games, Nintendo, Pacific Data Images (PDI),Pixar, Sega, Sony Pictures Imageworks, Square Co., Ltd., and Weta Ltd.Design customers include AT&T, BMW, Boeing, Fiat, Ford, GeneralMotors, Honda, Italdesign, Kodak, Kwikset, Mattel, Price Pfister,Renault, Rollerblade, Sharp, Trek Bicycle, Teague and Timex.

In 1997, John Gibson, Rob Krieger, Milan Novacek, Glen Ozymok andDave Springer were awarded a Technical Achievement Award from theAcademy of Motion Picture Arts and Sciences for the development of thegeometric modeling component of the Alias PowerAnimator system.StudioTools is based on this software code.

Alias is a wholly owned, independent software company of SGI withheadquarters in Toronto and Custom Development Center in Santa Barbara.Please visit the Alias website at http://www.alias.com or call1-800-447-2542 in North America. International contact numbers include:Northern Europe, Middle East and Africa, +44 (0) 1494 441273; Germany,East & Southeast Europe, 0049 89 31 70 20; France, Spain andPortugal, +33 1 44 92 81 60; Italy, 39 039 6340011; Japan and otherparts of Asia Pacific, 81 3 5797 3500 and Latin America, 770 3931881.