Sun Microsystems’ Solaris 10 Operating System to Provide Industry’s Best Interoperability on the Desktop

Tarantella Acquisition Will Enable Sun to Deliver Desktop as a Service — From Windows to Linux to Mainframe Computing

SANTA CLARA, Calif.
May 10, 2005

As previously announced this morning, Sun Microsystems, Inc. (NASDAQ: SUNW) has entered to an agreement to acquire Tarantella, Inc. (TTLA.OB)

Already leaders in thin-client technology, the combination of Sun and Tarantella will allow the industry to deliver secure access to data and applications anywhere on virtually any Java enabled device as a service for just dollars per day. Sun believes this capability will be a catalyst for accelerating the adoption of a utility computing model for the desktop and is extending an invitation to service providers, OEMs, device manufacturers and others to build on this new business opportunities.

Using Tarantella’s technology and Solaris, more customers like Time Warner Cable, Qualcomm and the US Department of Defense will be able to implement Sun’s innovative Sun Ray ultra-thin clients with full Microsoft interoperability as well as access to their Mainframe, Linux and other applications.

The acquisition will further Sun’s strategy to deliver the most comprehensive set of services for Solaris; from traditional system services, to application, naming, directory, availability and now interoperability and mobility services. More than 1.3 million licenses of Solaris 10 have been distributed since January 31, 2005. It is certified to run on more than 375 non-Sun hardware platforms, runs on AMD x64, Intel Xeon and Sun’s SPARC processor architectures and is priced less than either Red Hat Enterprise Linux or SuSE Linux.

“The requirements for security, mobility, and ubiquitous access are huge growth drivers for client side computing,” said Jonathan Schwartz, president and chief operating officer, Microsystems Inc. “Sun is poised to capture significant share in this sector by providing the most advanced, secure, and interoperable platform for network based client computing — Solaris. With Tarantella technology and Solaris, Sun will create a whole new desktop experience by securely and seamlessly bridging application platform, device type, and location, enabling the delivery of desktop services just as we get cell phone services today.”

The acquisition is subject to customary closing conditions, including regulatory approvals and the approval of Tarantella’s shareholders. The transaction is expected to be completed in the first quarter of Sun’s fiscal year 2006.

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, Solaris, Java, N1 and The Network Is The Computer are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries.

This Press Releases contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding future results or financial performance of Sun Microsystems, Inc., including statements relating to the acquisition of Tarantella to enable Sun to provide the industry’s best interoperability and to deliver desktop as a service, to deliver secure access to desktop data and applications anywhere on virtually any Java enabled device for dollars per day, the belief that this combination will be a catalyst for accelerating the adoption of a utility computing model for the desktop, the implementation of Sun’s Sun Ray ultra-thin clients with full Microsoft Interoperability and access to Linux and other applications, the furthering of Sun’s strategy to deliver the most comprehensive set of services in Solaris, the belief that Sun is poised to capture significant share in this market by providing the most advanced, secure, and interoperable platform for network based client computing, the belief that Sun will create a whole new desktop experience by securely and seamlessly bridging application platform, device type, and location and the expected close of the acquisition in the first quarter of Sun’s fiscal year 2006. Such statements are just predictions and involve risks and uncertainties such that actual results and performance may differ materially. Factors that might cause such a difference include uncertainties as to the timing of the merger, approval of the transaction by Tarantella’s shareholders and the satisfaction of closing conditions to the transaction, including closing conditions related to the consent of third parties, successful integration of Tarantella and its products, services, technologies and employees into Sun, developing and marketing new products, lack of success in the timely development, production and acceptance of new products and services and in technical advancements, Sun’s inability to compete successfully in the highly competitive and rapidly changing marketplace, failure to retain key employees, cancellation or delay of projects, increased competition and continued adverse general economic conditions in the U.S. and internationally. These and other risks are detailed from time to time in Sun’s periodic reports that are filed with the Securities and Exchange Commission, including Sun’s annual report on Form 10-K for the fiscal year ended June 30, 2004 and Sun’s quarterly reports on Form 10-Q for the fiscal quarters ended September 26, 2004, December 26, 2004 and March 27, 2005.