SEATTLE, WA -- (MARKET WIRE) -- 09/29/2006 -- Cray Inc. (NASDAQ: CRAY) today filed a registration statement with the Securities and Exchange Commission with respect to a proposed underwritten public offering of up to $80,000,000 of common stock plus an option to purchase up to an additional $12,000,000 of common stock to cover over-allotments, if any.

The Company expects to use the proceeds to fund working capital and for general corporate purposes, including product development and capital expenditures.

The sole book-running manager of the offering is Thomas Weisel Partners LLC, the co-lead manager of the offering is Needham & Company, LLC and the co-managers of the offering are C.E. Unterberg, Towbin and Miller Johnson Steichen Kinnard. When available, copies of a written prospectus meeting the requirements of Section 10 of the Securities Act of 1933 relating to this offering may be obtained from Thomas Weisel Partners LLC, One Montgomery Street, Suite 3700, San Francisco, California 94104, or by calling (415) 364-2720.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission, but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Cray Inc.

Cray designs, develops, manufactures, markets and services high performance computing systems, commonly known as supercomputers. Cray's supercomputer systems provide capability, capacity and sustained performance far beyond typical server-based computer systems and address challenging scientific and engineering computing problems.