FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN 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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1. Name and Address of Reporting Person * JEHN CHRISTOPHER   2. Issuer Name and Ticker or Trading Symbol CRAY INC [CRAY] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner __X__ Officer (give title below) _____ Other (specify below) VICE PRESIDENT (Last) (First) (Middle) 411 FIRST AVENUE SOUTH, SUITE 600 3. Date of Earliest Transaction (Month/Day/Year) 12/20/2005 (Street) SEATTLE, WA 98104-2860 4. If Amendment, Date Original Filed(Month/Day/Year) 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 Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock (1) 12/20/2005   A   10,000 A $ 0 33,970 D   Common Stock               1,180 I By 401(k) plan

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Employee Stock Option (Right to Buy) (2)

$ 3.95

12/20/2005

D

26,783

08/26/2003

08/26/2012

Common

26,783

(2)

151,138

D

Employee Stock Option (Right to Buy) (2)

$ 1.49

12/20/2005

A

26,783

12/20/2005

08/26/2012

Common

26,783

(2)

177,921

D

Employee Stock Option (Right to Buy) (2)

$ 3.95

12/20/2005

D

5,510

08/26/2003

08/26/2012

Common

5,510

(2)

172,411

D

Employee Stock Option (Right to Buy) (2)

$ 1.49

12/20/2005

A

5,510

12/20/2005

08/26/2012

Common

5,510

(2)

177,921

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
JEHN CHRISTOPHER 411 FIRST AVENUE SOUTH SUITE 600 SEATTLE, WA 98104-2860			VICE PRESIDENT

Signatures

Christopher Jehn by Kenneth W. Johnson, Attorney-in-Fact		12/22/2005
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(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)	Restricted stock award, vests in full on June 30, 2007.
(2)	These options were repriced with no changes to the other option terms. For Form 4 purposes, the recipient is considered to have received a grant of a new non-qualified stock option upon the surrender of an existing option, as indicated.

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