SGI Announces Dismissal of Class Action Lawsuit by the United States District Court

SGI (NASDAQ: SGI), a global leader in HPC and data center solutions, today announced that on Friday, August 27^th, the United States District Court for the Northern District of California dismissed with prejudice the class action lawsuit [In Re Rackable Systems, Inc. Securities Litigation], Case No. C-09-0222-CW, filed on January 16, 2009.

Based on the ruling of United States District Judge Claudia Wilken, the dismissal was issued because further amendment or actions by the plaintiffs would have been futile. SGI is pleased that the Court supported the Company’s position and that this milestone was favorably achieved.

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