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SUN Ships Two Out of Three UNIX®/RISC Systems In US

Sun’s Calendar 2001 Unix/ RISC Unit Market Share Grows Ten Percent

Carlsbad, Calif.
February 12, 2002

Sun Microsystems, Inc. (Nasdaq: SUNW) demonstrated stellar market acceptance in a tough economy by growing UNIX®/RISC unit market share in calendar year 2001 at the expense of major competitors. According to Gartner Dataquest’s Q4 US Server Database Report, Sun remains the number one leader in UNIX/RISC units and revenue by a wide margin. Over the past five years, Sun has grown its market position to a solid number one in UNIX/RISC systems. The company’s focus on systems design and best-of-breed solutions is reflected in its competitive strength.

Maintaining its strong hold on the UNIX server landscape, Sun again holds the number one UNIX/RISC server vendor position in the US, shipping two out of every three systems. With over 34,000 unit shipments in Q4, Sun captures the lion’s share of the market with 68.5 percent, more than double that of its nearest three competitors combined. While the economy continues to put a squeeze on the UNIX/RISC server market in general, Sun demonstrated 13.5 percent sequential quarterly growth in shipments.

Sun ended the 2001 calendar year strong, resulting from the positive momentum generated from its roll out of the highly anticipated 900 MHz UltraSPARC[tm] III Cu processor, the launch of its new line of Sun Fire™ Midframe servers, as well as the debut of its flagship high-end Sun Fire™ 15K server. And rapid acceptance of the new Sun Fire v880 system has resulted in the fastest ramp of any new Sun product.

Customers, many of which are brand new Sun customers, are consistently choosing Sun over competitors for their server consolidation, mainframe rehosting and mission-critical data center needs. Sun’s seamless transition to its new UltraSPARC III based systems is reflected in its sequential quarterly growth leadership position. The new Sun Fire product line — from entry to high-end — brought in over one billion dollars in US revenue for the 2001 calendar year.

“Even in a troubled economy, Sun is undaunted, winning customer after customer in competitive deals worldwide,” said Shahin Khan, chief competitive officer, Sun Microsystems, Inc. “The numbers prove that Sun’s rock solid reliable and massively scalable server line is what the market wants. The need for simplicity, reliability and scalability is driving the demand for UNIX/RISC servers and Sun’s SPARC/Solaris[tm] offering is continuously the platform of choice.”

About Sun Microsystems, Inc.

Since its inception in 1982, a singular vision — The Network Is The Computer[tm] — has propelled Sun Microsystems, Inc. (Nasdaq: SUNW) to its position as a leading provider of industrial-strength hardware, software and services that power the Internet and allow companies worldwide to take their businesses to the nth. Sun can be found in more than 170 countries and on the World Wide Web at http://sun.com.

Sun, Sun Microsystems, the Sun logo, Sun Fire, Solaris and The Network Is The Computer are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries. All SPARC trademarks are used under license and are trademarks or registered trademarks of SPARC International, Inc. in the United States and other countries. Products bearing SPARC trademarks are based upon an architecture developed by Sun Microsystems, Inc. UNIX is a registered trademark in the United States and other countries, exclusively licensed through X/Open Company, Ltd.