In this paper we detail the performance of a new Alphaserver machine consisting of 16 Alpha EV7 CPUs. This processor is based on the Alpha EV68 processor core as used in the existing Alphaserver ES45 that has been used to build terascale systems at Los Alamos and at Pittsburgh. The EV68 processor core is supplemented with an additional six-way router circuitry which enables a 2-D inter-processor torus network to be constructed as well as direct connections to I/O and local memory. A performance evaluation of this machine is reported here which considers memory hierarchy, intra-node MPI communication, and full application performance. Comparisons are also made to existing Alphaserver machines. It is clear from this analysis that this machine achieves an excellent main memory bandwidth of over 4 GB/s. This has a positive impact on application performance on larger problem sizes in comparison to a similar speed EV68 processor.