ENGINEERING

PALO ALTO, CA -- Stunning the UNIX® server world, Sun Microsystems, Inc. (Nasdaq: SUNW) was the only vendor in the second quarter calendar year 2001 to grow marketshare -- now at 42 percent -- while IBM, HP, Compaq and Dell declined sequentially from the first quarter 2001 to second quarter 2001. According to IDC Q2CY01 Server Tracker report released Friday, Sun's total server shipments -- including all operating systems -- increased 5.5 percent from Q1 to Q2, more than any other top five server vendor. In addition, Sun maintained its crown as the leader of UNIX shipments for the 17th consecutive quarter. Sun was also number one in UNIX server revenue with 35 percent marketshare, topping this category for 10 consecutive quarters. "This is proof that Sun's focused and seamless strategy delivers superior total cost of ownership for customers who choose and continue to choose the reliability of the SPARC[tm] platform, Solaris[tm] Operating Environment and Sun Open Net Environment (Sun ONE) architecture for the datacenter," said Shahin Khan, chief competitive officer for Computer Systems, Sun Microsystems. "Even in light of IBM's recent announcement of a new midrange UNIX server, they still have not gotten it right. Sun beat IBM 4 to 1 in shipments." The IDC report reinforces Sun's leading position in the UNIX server market. Sun's award-winning servers, including the new Sun Fire line, provide a single interoperable computing platform that seamlessly integrates into heterogeneous environments. The Numbers Speak for Themselves - Sun is number one in entry-level UNIX shipments out shipping number two IBM by a margin of two and a half to one - Sun jumped from third to first place in midrange UNIX server revenue, leaping past IBM and HP sequentially in Q1 to Q2 - Sun is number one in UNIX midrange server shipments, beating out HP and shipping more than IBM by four to one - Sun topped the high-end UNIX market shipments with a 33 percent growth sequentially, and out shipped HP and IBM by nearly four to one and six to one respectively Sun remains the leader in the worldwide UNIX workstation market in both shipments and revenue in 2QCY01. In a highly competitive market, Sun maintained its number one position with $362 million and 39 percent market share in revenue, while gaining one point in market share at 64 percent in shipments. With 76,675 units sold, Sun workstation shipments outpace HP and IBM (ranking two and three respectively) by a margin of five to one. (Source: IDC Q2CY01 Workstation Qview, August 2001) The Sun Enterprise[tm] and Sun Fire[tm] server family is reportedly the industry's only single, binary-compatible product line featuring a range of servers that scale from one to 64 processors -- providing customers with flexibility, investment protection and an unparalleled growth path. With availability as the key attribute, enterprises and service providers find Sun servers an ideal platform for the service driven network. Designed for remote/branch offices and datacenter environments, these systems provide a robust infrastructure for a range of network services, applications, and backend databases. The Netra[tm] server family builds on the reliability and scalablity Sun systems are known for -- adding physical and computing features needed to operate in extreme environmental conditions. For additional information visit www.sun.com