SILICON GRAPHICS ANNOUNCES DEPARTURE

[Dave Crocker <dcrocker () udel engr sgi com>]

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Date:    Thu, 27 Jan 1994 13:58:38 PST
To:      osgrp@hawkeye, cse@hawkeye
cc:      hollys@hawkeye (Holly Salinas)
From:    hollys@hawkeye (Holly Salinas)
Subject: Urgent Announcement
Content-Type: text
Content-Length: 11006 


 FOR IMMEDIATE RELEASE
 
 Contact:
 
 Rosanne Siino (Media) 415-390-1029
 Marilyn Lattin (Financial) 415-390-5070
 
 SILICON GRAPHICS ANNOUNCES DEPARTURE OF
 FOUNDER AND CHAIRMAN JIM CLARK
 
 MOUNTAIN VIEW, California (January 27, 1994) -- Silicon Graphics,
 Inc. (NYSE: SGI) announced today that its chairman and founder Dr.
 James H. Clark has stated his intention to resign his position with the
 company effective February 28.  Dr. Clark, who founded Silicon
 Graphics in 1982, made the decision in order to pursue applications
 software opportunities in the emerging interactive broadband network
 and television market.
 
 "I am leaving at this time because I believe there are major
 entrepreneurial opportunities in applications software for interactive
 television, and I want to explore these opportunities.  I'm confident that
 the management team currently in place will continue to take Silicon
 Graphics forward as one of the world's leading computer vendors," said
 Dr. Clark.  "I'm also certain that Silicon Graphics will be one of the key
 suppliers of computing technology for the interactive television market.
 I intend to build my future venture around Silicon Graphics systems, so
 my new pursuits will be highly synergistic with Silicon Graphics'
 business."
 
 "Since he first began researching his idea for a chip that would
 accelerate a computer's ability to display 3D graphics, Jim has dedicated
 fifteen years of his life to Silicon Graphics, providing the vision that
 has challenged us to become one of the world's fastest growing companies,"
 said Edward R. McCracken, president and CEO of Silicon Graphics.
 "His contributions here have been invaluable and long-lasting, and have
 helped bring the company into new markets such as interactive
 entertainment that are now a key part of our business.  We know that Jim
 will have many opportunities available to him and we wish him success
 as he chooses the next arena in which to make a contribution."
 
 Dr. Clark was an associate professor at Stanford University when he
 founded Silicon Graphics with six graduate students.  He has served as
 chairman of the company since its beginning.  Dr. Clark's leadership in
 the development of both graphics hardware and software has been
 instrumental in establishing Silicon Graphics as the leader in visual
 computing systems.  In recent years, Dr. Clark began exploring
 opportunities for Silicon Graphics' technology in the consumer
 electronics field, playing a key role in the company's partnerships
 announced last year with video games leader Nintendo Corporation for
 its next-generation video game system, and with Time-Warner Cable for
 the creation of its Full Service Network in Orlando.
 
 Silicon Graphics, Inc. is the leading manufacturer of high-performance
 visual computing systems.  The company delivers interactive three-
 dimensional graphics, digital media and multiprocessing
 supercomputing technologies to technical, scientific and creative
 professionals.  Its subsidiary, MIPS Technologies, Inc., designs and
 licenses the industry's leading RISC processor technology for the
 computer systems and embedded control markets.  Silicon Graphics has
 offices worldwide and headquarters in Mountain View, California.
 
 Silicon Graphics and the Silicon Graphics logo are registered
 trademarks of Silicon Graphics, Inc.  MIPS is a registered trademark of
 MIPS Technologies, Inc.
 
 --------------------------------------------------------------------
 A Message From Jim
 --------------------------------------------------------------------
 
 To All Silicon Graphics Employees:
 
 After fifteen years of helping to build this great company, I have
 decided to leave Silicon Graphics. As many of you know, in the past
 couple of years I have devoted much of my time to creating opportuni-
 ties for Silicon Graphics technology in the consumer electronics field.
 In exploring this arena, I have become increasingly interested in the
 area of applications software for the emerging interactive television
 market. Although this market is almost pre-embryonic, I am convinced
 that many of today's "content" companies don't understand applica-
 tions software for interactive computing systems, yet their future cru-
 cially depends upon it. I have decided I would like to help these
 companies and hope to build a business in doing so.
 
 I am extremely positive about the company we've built, and my enthu-
 siasm is stronger than ever for Silicon Graphics. In fact, my future pur-
 suits will be built around our computer systems and what we're doing
 to facilitate consumer uses of our technology. I am confident we've got
 the right partners for this market in Time-Warner and Nintendo, and I
 know the management team here will continue to forge these kinds of
 relationships with strategic companies.
 
 I know you are all proud to be associated with this company. So am I.
 The vitality here is obvious. We've always defined our markets and
 built them, rather than trying to take markets away from other compa-
 nies. This approach is an extremely positive one, and I believe it creates
 the foundation for our positive culture.
 
 This approach to the market was true of our original objectives in 3D
 graphics, and it is true of our recent efforts in consumer uses of our
 technology. Before we founded the company in 1982, no major com-
 puter vendor believed that people would actually want to buy comput-
 ers to do 3D visualization. In 1988, when we delivered our first low-
 end offering with the Personal IRIS, other companies still weren't con-
 vinced that there was a broad market for 3D graphics. On the high-end,
 our multiprocessing systems were far ahead of anyone else in the
 industry. And when we incorporated audio and video into the Indigo
 line, integrated multimedia was unprecedented in the workstation
 world.
 
 Similarly, in the last couple of years, some people thought it was silly
 to believe computers would be at the core of consumer products -- yet
 in a fundamental way, consumer electronics will probably be the most
 pervasive use of computer technology in history.
 
 I believe that Silicon Graphics is on the threshold of its largest growth
 phase ever, without flinching from its core business. Not only are we
 positioned to be one of the top three computer companies in the world,
 but we are perfectly positioned to be the dominant supplier of computer
 technology for interactive television. The two positions are wonder-
 fully complementary,with the same basic technologies offering success
 in each.
 
 So why leave now? First, I have always been a person who enjoys start-
 ing new things, and I want to explore this opportunity in software for
 interactive television. Second, as you all know, the management team
 of Silicon Graphics has never been stronger -- I'm leaving the company
 in very capable hands. And third, I'm at a point in my life where I want
 to try something different.
 
 It brightens my day to see all of the bright, intelligent, happy people
 around here. I'll miss that. But I'll still be promoting you and what you
 represent, even though I'll be on the outside. And I look forward to see-
 ing you whenever I get the chance.
 
 Keep this positive culture!
 
 Sincerely,
 
 
 
 Jim
 
 
 ----------------------------------------------------------------
 A Message From Ed
 ----------------------------------------------------------------
 
 
 To All Silicon Graphics Employees:
 
 As you know, Jim Clark has decided to leave Silicon Graphics. I would
 like to take this opportunity not only to wish Jim well in his new
 endeavors, but also to congratulate and thank him for his many contri-
 butions to our company. His leadership and vision over the years have
 helped to challenge us to become one of the fastest growing companies
 in the world.
 
 Fifteen years ago, Jim had an idea for a chip that would accelerate a
 computer's ability to display 3D graphics. As an associate professor at
 Stanford University, he led a team of graduate students working on that
 idea under a government research grant that had been secured by
 another Stanford professor -- Dr. Forest Baskett. From that beginning,
 Jim and the others -- Kurt Akeley, Tom Davis, Rocky Rhodes, Marc
 Hannah and Mark Grossman -- founded Silicon Graphics and brought
 together talented individuals in the new company.
 
 Throughout the years, Jim has provided leadership in the development
 of both graphics hardware and software, helping to establish Silicon
 Graphics as the leader in visual computing. In recent years, he has
 made a tremendous contribution in bringing Silicon Graphics into a
 new market -- the emerging market of interactive entertainment. This
 new market is a major opportunity for us and a perfect complement to
 our core business, leveraging many of the same technologies.
 
 The same types of graphics architectures that Kurt Akeley, Marc Han-
 nah and the engineering teams have created for our core markets are
 now being incorporated not only in the workstations coming from Mike
 Ramsay's organization but also into products for interactive entertain-
 ment. The chips designed by Tom Whiteside's team at MTI are at the
 heart of not only the world's most powerful computers but also next-
 generation consumer devices. And the same servers being delivered
 from Wei Yen's organization for database and supercomputing applica-
 tions are now being used to power what will become the information
 superhighway.
 
 We will look forward to working with Jim in the future as he pursues
 opportunities in this new market. As our teams continue their work on
 the interactive entertainment projects here, they will undoubtably work
 with Jim as he innovates in the applications software side of that busi-
 ness.
 
 Jim's leaving is a milestone for our company. It is difficult for any com-
 pany to see a founder move on, but as Jim has pointed out, Silicon
 Graphics has never been in a stronger position than it is today. The
 management team we have in place is the best in the industry. Our
 research and development efforts led by Forest Baskett and John Hen-
 nessy continue to keep us at the technological forefront of our markets.
 The work by Marc and Kurt along with the graphics expertise we have
 developed as a company enables us to deliver innovative graphics
 products on aggressive schedules. We continue to grow faster than any
 of our competitors. And every person here continues to contribute to
 our phenomenal growth and success.
 
 Please join me in wishing Jim the best in his new endeavors and in
 thanking him for his contributions throughout the years. Even though
 he is moving on, Jim will always be a part of the vision and spirit of
 Silicon Graphics.
 
 
 Ed
 
 --
 
 
 -- 
 Mickey Georges                         Internal Communications
 mickeyg () corp sgi com                   Silicon Graphics, Inc.
 VM:  (415) 390-1718                    2011 N. Shoreline
 FAX: (415) 390-6049                    Mt View   CA  94043
 






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