Cray/Media:                     Steve Conway, 612/683-7133
Silicon Graphics/Media:         Rene Wildman, 415/933-1026
Silicon Graphics/Financial:     Marilyn Lattin, 415/933-5070

CRAY RESEARCH ANNOUNCES LETTER-OF-INTENT FOR SUN TO
ACQUIRE BUSINESS SYSTEMS DIVISION

EAGAN, Minn., May 17, 1996 -- Silicon Graphics subsidiary Cray
Research, Inc. (NYSE:CYR) today announced a letter-of-intent
for Sun Microsystems Computer Company to acquire Cray's
Business Systems Division, based in Beaverton, Ore.

The preliminary agreement calls for Sun Microsystems, based
in Mountain View, Calif., to acquire the assets of the Business
Systems Division.  As part of the agreement, Sun will provide
service and support to the existing CS6400 customer base.  
Other terms were not disclosed. 

The letter-of-intent is subject to completion of a definitive
agreement, and to the receipt of government approvals.  The
transaction is expected to close prior to June 30, 1996.

"Cray's SPARC/Solaris server business does not fit Silicon
Graphics' and Cray's long-term MIPS-based product roadmap,
but is a good fit with Sun," said Cray Research President and
Chief Operating Officer Robert H. Ewald.  "Today's
announcement reflects our stated commitment to provide a
compatible path forward for our SPARC/Solaris system
customers."

Ewald said Silicon Graphics' CHALLENGE product line has been
highly successful in addressing the needs of commercial and
enterprise customers.  Cray's experience in designing systems
for the commercial market will benefit the CHALLENGE product
line, he added.

Cray Research provides the leading supercomputing tools and
services to help solve customers' most challenging problems.