Ownership Submission
FORM 3
 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
  SCOTT STEVEN LEE
 2. Date of Event Requiring Statement (Month/Day/Year)
10/19/2005		 3. Issuer Name and Ticker or Trading Symbol
CRAY INC [CRAY]
(Last)
(First)
(Middle)
411 FIRST AVENUE S., SUITE 600		 4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Chief Technology Officer
 5. If Amendment, Date Original Filed(Month/Day/Year)
(Street)

SEATTLE, WA 98104		 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Beneficially Owned
1.Title of Security
(Instr. 4)		 2. Amount of Securities Beneficially Owned
(Instr. 4)		 3. Ownership Form: Direct (D) or Indirect (I)
(Instr. 5)		 4. Nature of Indirect Beneficial Ownership
(Instr. 5)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 4)		 2. Date Exercisable and Expiration Date
(Month/Day/Year)		 3. Title and Amount of Securities Underlying Derivative Security
(Instr. 4)		 4. Conversion or Exercise Price of Derivative Security 5. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 5)		 6. Nature of Indirect Beneficial Ownership
(Instr. 5)
Date Exercisable Expiration Date Title Amount or Number of Shares
Stock Option Grant (1) 03/21/2005 07/01/2010 Common 2,188 $ 5 D  
Stock Option Grant (1) 03/21/2005 02/07/2011 Common 3,792 $ 2.53 D  
Stock Option Grant (1) 03/21/2005 04/29/2012 Common 29,167 $ 2.59 D  
Stock Option Grant (1) 03/21/2005 07/12/2012 Common 15,626 $ 4.1 D  
Stock Option Grant (1) 03/21/2005 02/05/2014 Common 35,487 $ 6.89 D  
Stock Option Grant (2) 03/21/2005 02/05/2014 Common 14,513 $ 6.89 D  
Stock Option Grant (1) 03/21/2005 09/20/2014 Common 25,000 $ 3.69 D  
Stock Option Grant (1) 12/31/2005 05/11/2015 Common 25,000 $ 2 D  
Stock Option Grant (1) 12/31/2005 05/11/2015 Common 25,000 $ 2.5 D  
Stock Option Grant (1) 12/31/2005 05/11/2015 Common 25,000 $ 3 D  
Stock Option Grant (1) 12/31/2005 05/11/2015 Common 25,000 $ 3.5 D  
Stock Option Grant (1) 12/31/2005 09/26/2015 Common 300,000 $ 0.951 D  

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
SCOTT STEVEN LEE
411 FIRST AVENUE S., SUITE 600
SEATTLE, WA 98104		       Chief Technology Officer  

Signatures

Steven L. Scott by Kenneth W. Johnson, Attorney-in-Fact 10/20/2005
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 5(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Non-qualified stock option.
(2) Incentive stock option.

Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, See Instruction 6 for procedure.

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