SGI to spin-off MIPS

Mountain View 17 May 00 After selling Cray to Tera, SGI now plans to spin-off all of its shares in processor producing MIPS. Currently SGI still holds 65% of the MIPS shares. The shares will be given as dividend to SGI's shareholders.

Under the spin-off, SGI will distribute to its shareholders as a dividend all of its 25,069,759 shares of Class B Common Stock of MIPS. Based on SGI's outstanding shares at March 31, 2000, each share of SGI stock would receive 0.135 of a Class B MIPS share. The actual distribution ratio will be determined based upon the number of shares outstanding as of the record date for the dividend. The Class B MIPS shares will be listed on NASDAQ separately from the Class A MIPS shares that are currently traded on NASDAQ. The Class A and Class B shares have substantially identical rights except that the Class B shares are entitled to elect 80% of MIPS Technologies' board of directors.

Ad Emmen

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