April 7, 1998
(Executive Council)

The following is being distributed at the request of Operation ONLINE:

Government of Newfoundland and Labrador,
Silicon Graphics Canada and Operation ONLINE Inc.
set stage for future partnering with signing in Toronto

In their joint public signing of a Statement of Principles this morning in Toronto, Brian Tobin, Premier of Newfoundland and Labrador, Doug Walker, President and CEO of Silicon Graphics Canada, and Sam Walters, Chairman of Operation ONLINE Inc., set the stage for a new era of partnering. "This lays the groundwork for future collaboration in the knowledge-based sector of the economy," indicated Premier Tobin having just finished an address to approximately 200 senior executives at a breakfast meeting in Toronto. The premier added: "Growth in the Information Technology sector within Newfoundland and Labrador has paralleled that across the country and there are many opportunities for partnership within our industry."

"In a global economy an important part of our mission is finding the right international-scale partners and we feel very optimistic about our collaboration with Silicon Graphics Canada," said Sam Walters, Chairman of Operation ONLINE Inc.

"Silicon Graphics Canada is pleased to collaborate with Operation ONLINE in support of the premier's efforts to stimulate regional economic growth and the development of new skills and capabilities for the citizens within the Province of Newfoundland and Labrador," explained Doug Walker, President and CEO for Silicon Graphics Canada. "Our market development approach to business seeks strategic alliances and partnerships that work to increase Canadian competitiveness. Today's agreement is but one example of the many initiatives Silicon Graphics has pursued in support of this objective."

The partnering document signed this morning focuses on collaboration among the three parties in the areas of advanced computing and visualization, now applicable in many sectors of the economy. These include the resource sectors, education and multimedia development.

ABOUT OPERATION ONLINE INC.

Operation ONLINE Inc. is a private/public partnership whose mission is to stimulate growth in the IT sector in Newfoundland and Labrador while capitalizing upon the enabling effect of IT in other sectors of the economy. Success is being realized through investment in the Information Technology industry, commitment to the development of new skills and capabilities and the formation of strategic partnerships with business and markets to develop new opportunities. More information is available at www.online.nf.ca

ABOUT SILICON GRAPHICS

Silicon Graphics Inc. is a leading supplier of high-performance interactive computing systems offering the broadest range of products from low-end desktop workstations to servers and high-end Cray? supercomputers. They also market MIPS? microprocessor designs, Alias/Wavefront? entertainment and design software and other software products. Silicon Graphics Canada, a subsidiary of Silicon Graphics Inc., is headquartered in Mississauga, Ontario and employs 140 people in six offices across Canada. Key markets for the Canadian operations include education and research, government, telecommunications, manufacturing, earth resources, and entertainment. To see what's possible, visit Silicon Graphics' website at: //www.sgi.com/International/Canada.

Contact:

Jennifer Grass
Sussex Strategy Group, (416) 260-6062, (416) 230-6511 (cell)

Lori Churchill
Communications Manager, Operation ONLINE Inc.(709) 729-4230

Heidi Bonnell
Office of the Premier, (709) 729-3564

Tracy Holotuk
Silicon Graphics Canada, National Public Affairs, Marcom and PR, (905) 282-8971