Cray Faces Delisting Due To 10-K Delay

Cray Inc. announced that it received a notice from the Nasdaq Stock Market stating the company is not complying with the requirements of Nasdaq Marketplace Rule 4310(c)(14), due to Cray's failure to file its annual Form 10-K report for the fiscal year ended Dec. 31, 2005, on a timely basis. Silicon Graphics, or SGI, was removed from the New York Stock Exchange because its shares were consistently below $1—a far cry from its 1996 high of $45. The threatened delisting is another blow to the companies that have been struggling to hold their own against Hewlett-Packard, Sun Microsystems and IBM. Cray has requested a hearing before a Nasdaq Listing Qualifications Panel to seek continued listing on the Nasdaq National Market until it files its Form 10-K for fiscal 2005. On March 31, 2006, Cray announced that it would delay the filing of its 2005 Form 10-K pending the completion of a review of a non-cash item in 2004 of $3.3 million that could result in an adjustment to its 2004 financial statements. Cray currently does not have an anticipated date of filing for the annual report.