Summary of SILICON GRAPHICS INC

Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standa

Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On December 2, 2008, Silicon Graphics, Inc. (the "Company") received a notification letter from The Nasdaq Stock Market ("Nasdaq") affirming that the market value of the Company's listed securities was less than $35 million over a consecutive 10-trading-day period and that the Company was therefore not in compliance with Nasdaq Marketplace Rule 4310(c)(3)(B). Furthermore, the letter indicated that at this time the Company did not meet the alternative Nasdaq requirement, pursuant to Rules 4310(c)(3)(A) or 4310(c)(3)(C), that the Company have either minimum stockholders' equity of $2.5 million or net income from continuing operations of $500,000 in the most recently completed fiscal year or in two of the last three most recently completed fiscal years.

In accordance with Marketplace Rule 4310(c)(8)(C), the Company is provided with thirty (30) calendar days, or until January 2, 2009, to regain compliance with the minimum market value requirement. If, at any time prior to January 2, 2009, the market value of the listed securities of the Company's common stock increases to $35 million or more for a minimum of 10 consecutive business days, the Nasdaq staff will determine if the Company complies with Rule 4310(c)(3)(B). If compliance with this rule cannot be demonstrated by January 2, 2009, then the Nasdaq staff will provide written notification to the Company that its securities will be delisted. At that time, the Company will be permitted to appeal Nasdaq's determination to a Listings Qualifications Panel.

During the compliance period, the Company's common stock is expected to continue to trade on The Nasdaq Stock Market.

A copy of the Company's press release announcing the notification from Nasdaq is attached to this Current Report as Exhibit 99.1.