Exhibit 99.1

News
Release

SGI Reports Fourth-Quarter And Fiscal Year Results

MOUNTAIN VIEW, Calif. (July 24, 2003) — SGI (NYSE: SGI) today announced results for its fourth fiscal quarter and fiscal year 2003, which ended June 27, 2003. Revenue for the fourth quarter was $240 million, compared with $217 million in the preceding quarter. Gross margin increased to 40.3% from 37.1% in the previous quarter.

GAAP operating expenses for the fourth quarter were $131 million, including $12.6 million in restructuring and non-cash impairment charges, compared with $128 million for the previous quarter. SGI’s fourth-quarter net loss on a GAAP basis was $36.6 million or $0.18 per share compared with $35 million or $0.17 per share from the third quarter. These results are consistent with the preliminary results announced on July 10, 2003.

“Our fiscal year 2003 was a challenge. Although we have seen a sequential increase in our Q4 revenues and gross margin, we still need to take aggressive steps to reduce costs and to drive revenue from our new line of products,” said Bob Bishop, chairman and chief executive officer of SGI.

As of June 27, 2003, unrestricted cash, cash equivalents and marketable investments were $141 million, which was unchanged from the previous quarter.

Revenue for full fiscal year 2003 was $962 million, compared with $1.3 billion from fiscal year 2002. Net loss for the year was $130 million or $0.64 per share, compared with $46 million or $0.24 per share from the previous year.

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SGI Reports Fourth Quarter and Fiscal Year Results/Page 2

SGI will conduct a conference call today at 2 p.m. PDT to provide additional details. The dial-in number is (888) 208-1824 (no passcode required) and the webcast site is www.sgi.com. An audio replay of this call will be available after 5 p.m. PDT today at (719) 457-2649 (reference passcode 745390) for seven days. All links to the archived webcast and audio replay are available at www.sgi.com/company_info/investors/. International investors can dial (888) 203-1112 (no passcode required). International replay is (719) 457-0820 (reference passcode 745390).

About SGI
SGI, also known as Silicon Graphics, Inc., is the world’s leader in high-performance computing, visualization and storage. SGI’s vision is to provide technology that enables the most significant scientific and creative breakthroughs of the 21st century. Whether it’s sharing images to aid in brain surgery, finding oil more efficiently, studying global climate or enabling the transition from analog to digital broadcasting, SGI is dedicated to addressing the next class of challenges for scientific, engineering and creative users. SGI was named on FORTUNE magazine’s 2003 list of “Top 100 Companies to Work For.” With offices worldwide, the company is headquartered in Mountain View, Calif., and can be found on the Web at www.sgi.com.

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Silicon Graphics, SGI and the SGI logo are registered trademarks of Silicon Graphics, Inc., in the United States and/or other countries worldwide. All other trademarks mentioned herein are the property of their respective owners.

SILICON GRAPHICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

		June 27, 2003			June 28, 2002
ASSETS
Current assets:
Cash and cash equivalents	$	140,836		$	213,302
Short-term marketable investments		440			4,878
Short-term restricted investments		35,298			43,506
Accounts receivable, net		133,166			193,992
Inventories		71,426			109,410
Prepaid expenses and other current assets		51,727			66,525
Total current assets		432,893			631,613
Restricted investments		1,430			1,183
Net property and equipment		108,062			160,282
Other assets		107,469			117,041
	$	649,854		$	910,119
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	76,507		$	92,326
Accrued compensation		38,916			46,734
Income taxes payable		22,666			10,369
Other current liabilities		157,545			219,236
Deferred revenue		149,434			168,283
Total current liabilities		445,068			536,948
Long-term debt		291,956			308,631
Other liabilities		91,385			119,181
Total liabilities		828,409			964,760
Total stockholders' deficit		(178,555	)		(54,641	)
	$	649,854		$	910,119

SILICON GRAPHICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share amounts)

		Three Months Ended						Twelve Months Ended
		June 27, 2003			June 28, 2002			June 27, 2003			June 28, 2002
Product and other revenue	$	144,126		$	171,718		$	547,719		$	856,719
Service revenue		96,039			112,783			414,029			484,666
Total revenue		240,165			284,501			961,748			1,341,385
Costs and expenses:
Cost of product and other revenue		86,711			98,961			333,245			464,405
Cost of service revenue		56,640			68,331			239,569			306,007
Research and development		40,463			44,087			170,937			176,893
Selling, general and administrative		78,250			95,430			319,360			450,365
Other operating expense, net (1)		12,585			1,929			30,046			44,476
Total costs and expenses		274,649			308,738			1,093,157			1,442,146
Operating loss		(34,484	)		(24,237	)		(131,409	)		(100,761	)
Interest and other income (expense), net		(10,701	)		(6,358	)		(21,104	)		(16,919	)
Other non-recurring income (expense), net		(3,454	)		(4,603	)		(3,454	)		35,422	(2)
Loss before income taxes		(48,639	)		(35,198	)		(155,967	)		(82,259	)
Income tax benefit (provision)		(11,991	)		1,492			(26,263	)		(35,936	)
Net loss	$	(36,648	)	$	(36,690	)	$	(129,704	)	$	(46,323	)
Net loss per common share - basic and diluted	$	(0.18	)	$	(0.18	)	$	(0.64	)	$	(0.24	)
Shares used in the calculation of net loss per common share – basic and diluted		203,281			198,545			201,424			194,974

(1) Represents a net charge for estimated restructuring costs and charges associated with the impairment of assets

(2) Includes a $64 million gain from the sale of 60% of our interest in SGI Japan in the twelve-month period ended June28, 2002.