I think it derives from CryEngine but is so heavily modified, you can't really call it that anymore.
Think Quake 1 engine and Half-Life.
Edit:
Damn you Furyo!
Quote from FuryoIt's using Nomad, an in-house engine.
It is written completely from scratch? 
I have seen both games at the games Convention. If you dont know you could think they come from the same engine. The gfx quality is similar, the movement and behaviour of the foliage is similar, both have huge outdoor environments etc.
Which game is better will come to the very personal choice of which kind of story you prefer imo. Crysis still has the Alien stuff while in Farcry 2 they try a realistic scenario without fancy fantasy elements.
I'm currently testing the Far Cry 2 engine here at Annecy, and yeah it's CE1 all over again. I was told they based it rather loosely on some previous CE1 build from the Far Cry era, and reworked it some more.
First experience with the engine, and I'm loving the terrain system. I'll be damned if my version is user friendly, but that's another thing altogether...
Interesting...and one thing I realize just now is - the engine is called "Nomad"?
That is the player's name (delta force nickname) in Crysis. 
yeah looked very Far-Cry Like in Leipzig but the theme is very very appealing 
Damn nice... I have to admit this really got me impressed.
Quote from FrieChampburning vegetation...pretty nice.
yeah, and the fire is affected by the wind, pretty neat!
that is close to look better than crysis imho 
Quote from e-freakthat is close to look better than crysis imho
I wouldn't go so far, but It's a pretty neat game, yeah...
Quote from aevirexLooks good... but photos from monitors look always better than the actual game >_>
... wait ... what ?
"Like I said, our A.I is super aggressive."
"Like I said, our A.I is super aggressive."
"Like I said, our A.I is super aggressive."
"Like I said, our A.I is super aggressive."
"Like I said, our A.I is super aggressive."
"Like I said, our A.I is super aggressive."
OK I GET IT.
It's looking really good, Cant wait for this and crysis. This looks similar in gameplay style to STALKER in my opinion.
Whoa! I take the thing I said earlier back, it actually looks surprisingly good.
Quote from Warby... wait ... what ?
Well, pics from a monitor suggest it looks better than it does actually _most of the time_ ... you get the idea >_>
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