To:		Silicon Graphics - US Employees
From: 		Ed.McCracken
Subject: 	Change in Benefits Program
Date: 		August 31, 1992

Silicon Graphics is committed to valuing differences in
our workforce because we believe that diversity enriches
our environment and enhances our continuing success.

One of the things that we are doing in support of this
principle is making a change in our benefits program.
Effective October 1, 1992, we will be extending eligibility
for coverage to our U.S. employees' same sex "spousal 
equivalents".  They will be eligible to participate in our
medical/dental/vision insurance plans, our adoption
assistance and employee assistance (CONCERN) programs, and
to receive relocation assistance just as out employees'
legally married spouses do.  They will also be included in
our family and bereavement leave of absence policies.

By making this change, we are clearly underscoring our firm
commitment to keeping Silicon Graphics a special place in
terms of our support for diversity among our employees.
We are addressing the fact that state and federal laws do not
provide same sex partners the possibility of legalizing their
relationships through marriage.  This prevents those
employees who would choose the option to get married, if they
could from sharing their health and other benefits with their
partners.

Many of the details of this new program are covered in the
attached summary Sheet and Question & Answers.

As a management team, we believe this is a very positive step
for Silicon Graphics.  Our company is taking a leadership
role, along with a few other innovative companies, to
demonstrate our commitment to, and acknowledge the significant
diversity in the workplace

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Spousal Equivalent Benefits & Programs

Applicable Benefits & Programs:
	.Medical, Dental and Vision
	.Adoption Assistance Program
	.Employee Assistance Program
	.Relocation Assistance
	.Family Leave
	.Bereavement Leave

Eligibility:
	To be eligible for these benefits, the employee and
	the spousal equivalent need to sign an "Affidavit
	of Spousal Equivalency" declaring: that they are each
	the sole partner of the other; that they are the same
	sex; that neither person is married; that they are not
	blood relations; that they live together in the same
	residence; that they are jointly responsible for the
	common welfare and finanacial obligations of both
	individuals; and that they would get married if it were
	a legal possibility.

Enrollment Process:
	.You can apply anytime within 30 days of completing the
	Affidavit of Spousal Equivalency.
	.To enroll, you can contact your Human Resources
	representative or XXXXX XXXX in the Corporate Benefits
	Department.  You will be asked to complete two forms:
	(1) the Benefits Enrollment/Change form; (2) the 
	Affidavit of Spousal Equivalency form

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Employee Questions & Answers

Q. Are there any financial implications for me if I decide to
participate in this expanded benefits program?

A. Yes. Because state and federal governments do not currently
recognize this type of coverage as a "company benefit", we are
legally obliged to treat the value of the coverage as
"compensation", and therefore, it is taxable.  In addition, there
is the usual employee contribution for adding a dependent to 
health plan coverage.


Q. How will the issue of employee privacy be handled?

A. Employees who decide to participate can choose to work through
their division HR representative or work directly with the 
Corporate Benefits department.  Confidentiality with regard to
the sign-up and records maintenance processes will be maintained.


Q. Are all the company's benefits available to same sex spousal
equivalents?

A. All of the major benefits are included.  The only benefits
excluded are supplementary life insurance and COBRA coverage
for the continuation of benefits for spousal equivalents and 
their dependents.


Q. Will this new benefits coverage extend to the dependent child
of my same sex spousal equivalent?

A. Yes. We will treat this situation exactly as we treat the
dependents of married partners.


Q. Why isn't the company extending this coverage to opposite sex
spousal equivalents of our employees?

A. At this time we are addressing the fact that same sex spousal
equivalents do not have the possibility of legalizing their
relationship through marriage.  Opposite sex spousal equivalents
have access to benefits through marriage.  Recognizing the varied
needs of our employees, we will continue to explore this type
of coverage as we evolve our benefits program.