NTT AND SILICON GRAPHICS REVEAL BREADTH OF JAPAN'S INTERACTIVE TECHNOLOGY
TRIAL

THE COMPANIES SIGNED CONTRACT TO JOINTLY DEVELOP SET-TOP, INTERACTIVE
APPLICATIONS FOR 300 TO 500-HOME TRIAL THIS YEAR

TOKYO, Japan/MOUNTAIN VIEW, California (February 2, 1995)- Nippon Telegraph
and Telephone Corporation (NTT) and Silicon Graphics, Inc. (NYSE:SGI)
today announced details of a definitive agreement to build an interactive
multimedia service system as part of NTT's Joint Utilization Test of
Multimedia Communication. The two companies will jointly develop
technology and services for the 300 to 500-home trial, beginning
installation this year in Urayasu City, a suburb of Tokyo.

"From Orlando to Urayasu City, Silicon Graphics is paving the visual
superhighway by putting more computing on top of televisions than most
people have on their PCs," said Edward R. McCracken, chairman and chief
executive officer of Silicon Graphics. "NTT has a remarkable visi on of
the interactive future. Together, we will define compelling and widely
deployable next-generation interactive services."

Under the agreement, the system jointly developed by NTT and Silicon
Graphics will combine NTT's digital network technologies, Silicon
Graphics' visually intuitive viewer interface, interactive applications,
and a powerful set-top device based on the MIPS microprocessor
archtecture. The new system will implement Silicon Graphics' CHALLENGE
media servers. Interactive Digital Solutions, a subsidiary of Silicon
Graphics will also participate in the development activities. Financial
terms of the agreement were not disclosed.

The interactive multimedia services system will provide
information-on-demand, networked multi-player games, video-on-demand,
telephony and CATV video. The 300 to 500-home trial is scheduled to begin
in late 1995.

Silicon Graphics, Inc. is the leading manufacturer of high-performance
visual computing systems. The company delivers 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.

Nippon Telegraph and Telephone Corporation and its subsidiaries provide
Japan's broadest range of telecommunications services, including
telephone, telegraph, leased circuit, data communication facility and
miscellaneous services. NTT continues in its long-standing commitment to
international cooperation and procurement. NTT is developing a
next-generation network in order to create advanced telecommunications
services for the 21st century and its research and development is crucial
to realizing this goal.

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