Accel-KKR To Acquire Alias From SGI

Alias continues to pioneer innovative 3D software and services to entertainment and design customers

Menlo Park, CA and Toronto, Ontario, April 15, 2004 - Accel-KKR and AliasR, a Silicon Graphics Inc. (NYSE:SGI) company, today announced a definitive agreement with SGI* under which Accel-KKR, with participation from the management of Alias, will acquire Alias from SGI for $57.5 million USD. Alias is the leading provider of 3D graphics technology and services for the film, video games, web, interactive media, automotive, industrial design, education and visualization markets. Accel-KKR is a technology-focused private equity firm.

"This exciting new partnership enables Alias to enhance its position as the innovation leader in 3D software," said Doug Walker, President of Alias. "Our plan is to accelerate investment in the product and service areas that provide the greatest payback for our entertainment and design customers. Our new partnership with Accel-KKR will facilitate this activity, providing long-term patient capital and other strategic resources to help us thrive as an independent enterprise. We believe Alias is uniquely positioned to lead and drive future innovation and, at the same time, make 3D technology more accessible to both professionals and consumers. The breadth of applications for this category of software is enormous."

Ben Bisconti, Managing Director of Accel-KKR, said, "We are delighted to be pursuing this opportunity with the management team of Alias. As an independent company, Alias will be in an even better position to capitalize on growth trends in the market and lead the industry in new and exciting directions."

Tom Barnds, Managing Director of Accel-KKR, added, "We look forward to joining with management in continuing to grow the company and deliver outstanding products and services to Alias' customers. The leadership and vision of Doug Walker and his team have made Alias the leading player in a very attractive market space -- with a premier brand name, award-winning products and a blue-chip customer base."

"Now more than ever, Alias is solidly positioned to deliver breakthrough product innovation matched with incredible solutions and support. The first return on this investment will be to our current and future customers, in both the entertainment and design markets," said Dave Wharry, Vice President of Global Sales and Marketing, Alias. "We now have a new financial partner who is aligned with our strategic direction which makes us an even stronger competitive force in the market."

The sale is expected to close this quarter.

This press release contains forward-looking statements relating to the sale of Alias by SGI. This transaction may not occur or may occur on terms substantially different from those described in this press release. For a discussion of risk factors relevant to SGI's businesses, please refer to SGI's periodic reports that are filed with the Securities and Exchange Commission.

About Alias

As the world's leading innovator of 3D graphics technology, Alias develops award-winning software, custom development and training solutions for the film and video, games, web, interactive media, automotive, industrial design, education and visualization markets. On March 1, 2003, for the awards year 2002, the Academy of Motion Picture Arts and Sciences awarded Alias|WavefrontT an OscarR for scientific and technical achievement for the development of MayaR software, the professional 3D animation and effects package. Alias also offers a powerful range of services for new to advanced users in the most demanding environments. Learning Tools and training, support, and professional services help meet rigorous production deadlines.

Entertainment customers include: Acclaim Entertainment, Inc., CNN, Digital Domain, Disney, Electronic Arts, Industrial Light & Magic, Factor 5 LLC, Midway Games, Nintendo, Pacific Data Images (PDI), Pixar, Sega, Sony Pictures Imageworks, Square Co., Ltd., Warner Feature Animation and Weta Ltd. Design customers include AT&T, BMW, Boeing, Fiat, Ford, General Motors, Honda, Italdesign, Kodak, Kwikset, Mattel, Price Pfister, Renault, Rollerblade, Sharp, Trek Bicycle, Teague and Timex.

Alias is a wholly-owned, independent software company of SGI with headquarters in Toronto and a Custom Development Center in Santa Barbara. 

www.alias.com

About Accel-KKR 

Accel-KKR is a technology-focused private equity investment firm founded by venture capital firm Accel Partners and private equity firm Kohlberg Kravis Roberts and Co. Accel-KKR invests primarily in technology companies with between $25 million and $150 million in revenue. Accel-KKR prefers majority ownership positions and investment opportunities in which it can contribute to the creation of long-term shareholder value. At the core of Accel-KKR's investment strategy is a commitment to developing strong partnerships with the management teams of its portfolio companies.

 

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