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SUN REINFORCES TELECOM INFRASTRUCTURE LEADERSHIP AT ITU TELECOM ASIA

Plans To Introduce Advanced Telecom Computing Architecture Line; Netra 440AC Enters Market; Competitive Win With Telecom New Zealand

SANTA CLARA, Calif. and BUSAN-ITU Telecom Asia 2004
September 7, 2004

The leader in network infrastructure for telecommunications providers, Sun Microsystems, Inc. (Nasdaq: SUNW) today announced its intention to launch an Advanced Telecom Computing Architecture (AdvancedTCA)-compliant product family supporting both the Solaris operating system (OS) and Carrier-Grade Linux operating systems. Sun also today unveiled the AC version of its UltraSPARC processor and Solaris OS-based Netra 440 system, the lowest priced 4-way carrier- grade server on the market.

As the telecommunications industry regains momentum, Sun has been able to capitalize with its Solaris OS based Netra servers and maintain its position as a leading provider. According to Gartner’s recent report “Worldwide Server Market Continues Strong Growth in 2Q04,”1 Sun posted the highest growth rate overall among top-tier vendors in worldwide server shipments, much of which can be attributed to strong demand for Netra systems from telecom providers.

Sun’s leadership in delivering best-of-breed products and solutions to the telecommunications market is demonstrated through a recent multi-million dollar commitment from Telecom New Zealand. “Sun’s products, from Throughput Computing and Solaris 10 through to the Java Enterprise System, are a good fit for our business now and into the future,” said Greg Patchell, Telecom New Zealand’s General Manager Technology Strategy & Capability. “Sun has proven a real commitment to helping us maintain a competitive edge through technology innovation. This partnership promises to be good for us in the long-term and for our customers as well.”

“Telecommunications companies such as Telecom New Zealand are key to making network computing pervasive in everyday life,” said David Yen, Executive Vice President, Scalable Systems Group, Sun Microsystems. “This market has historically been, and will remain, a key priority for Sun. We understand the competitive pressures they face and are committed to delivering the most innovative technology to help them derive value from their business.”

AdvancedTCA Family

AdvancedTCA is one of the latest industry standards (PICMG) specification for next generation carrier-grade blade servers. Sun’s Netra AdvancedTCA systems will include UltraSPARC and AMD Opteron-based processor technologies with support for Solaris and Carrier-Grade (CG) Linux. Network equipment providers and carriers will be able to optimize throughput and cost effectiveness for 3G network applications, including GGSN, SGSN and RNC, using these new technologies. Only Sun will be delivering ATCA Systems which support the two of the most popular carrier-grade operating systems, Solaris and CG Linux.

Netra 440 AC Server

Following the launch of the Netra 440 DC server in June 2004, Sun today unveiled the Netra 440 AC at 75 percent less than the competitive 4 processor NEBS certified server from HP. Designed to meet the needs of telecom, defense and OEM customers, the Netra 440 AC is now the lowest-priced option on the market.

Starting at $13,995 (U.S. list price) – over 40 percent less than HP’s rx4640 Itanium server and almost 75 percent less than HP’s rp5470 PA-RISC carrier-grade servers – Sun’s Netra 440 server delivers unprecedented price performance. The Netra 440 also offers telecom customers the best compute density (4P/5U) of any comparable server on the market today, enabling them to deploy more capacity and capability in a single rack.

About Sun Microsystems, Inc.

Since its inception in 1982, a singular vision — “The Network Is The Computer” — has propelled Sun Microsystems, Inc. (Nasdaq: SUNW) to its position as a leading provider of industrial-strength hardware, software and services that make the Net work. Sun can be found in more than 100 countries and on the World Wide Web at http://sun.com

Sun, Sun Microsystems, the Sun Logo, Netra, 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.