CRAYE Cray (MM)

Schatz & Nobel, P.C. Announces Class Action Lawsuit Against Cray, Inc. HARTFORD, Conn., May 26 /PRNewswire/ -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Western District of Washington on behalf of all persons who purchased the publicly traded securities of Cray, Inc. (NASDAQ:CRAYE) ("Cray" or the "Company") between July 31, 2003 and May 12, 2005, inclusive (the "Class Period"). Also included are all those who acquired Cray's shares through its acquisition of OctigaBay Systems. The Complaint alleges that Cray and certain of its officers and directors violated federal securities laws. Specifically, it is alleged that the Company's manufacturing processes, internal controls and testing were flawed and ineffective and that Cray's own auditors and Audit Committee knew of the flawed and ineffective internal controls. Further, delays in inventory recognition realization and revenue were a recurring and unpredictable feature of Cray's business model and Cray was either losing money or just breaking even on certain customer orders. Despite these problems, throughout the Class Period, Cray failed to disclose, and in fact misrepresented, material adverse facts, about the Company's financial health. Notably, the complaint alleges that Cray failed to disclose that business metrics having a direct bearing on revenue recognition were becoming increasingly unfavorable, were unlikely to improve anytime soon and would ultimately impact the Company's financial operations. On May 9, 2005, Cray revealed that it had failed to include an auditor's opinion on management's assessment of internal control over financial reporting in its Form 10-K/A filed on May 3, 2005. On this news, the price of Cray's stock fell $0.74 per share over the three-day period ending May 12, 2005, closing at $1.34 per share. If you are a member of the class, you may, no later than July 25, 2005, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s). For more information about the case, its claims, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at . To view a copy of the Complaint initiating the class action, which was not filed by Schatz & Nobel, or for more information about this case, class action cases in general, or Schatz & Nobel, please visit our website: http://www.snlaw.net/. CONTACT: Wayne T. Boulton or Nancy A. Kulesa Tel.: (800) 797-5499 Website: http://www.snlaw.net/ e-mail: DATASOURCE: Schatz & Nobel, P.C. CONTACT: Wayne T. Boulton or Nancy A. Kulesa both of Schatz & Nobel, P.C., +1-800-797-5499, Web site: http://www.snlaw.net/

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