Sun Microsystems and Capgemini Launch RFID Solution for Retail and Comsumer Package Goods Companies

Solution Addresses Industry Mandates Established by Leading Retailers

SANTA CLARA, Calif. and PARIS
May 5 , 2004

Sun Microsystems, Inc. (NASDAQ: SUNW) and Capgemini today announced the launch of a jointly developed Radio Frequency Identification (RFID) solution. The solution will help enable retail and consumer packaged goods (CPG) companies to comply with RFID mandates issued by a growing number of leading retailers such as Wal-Mart, Target, and Albertsons. Sun and Capgemini provide a complete end-to-end solution including hardware, software and consulting services.

The Sun and Capgemini RFID solution is unique in that it has been designed from the ground up to optimize the full supply chain. The solution addresses business justification and supply chain modeling, as well as expertise in the application landscape at both the enterprise and middleware levels. Capgemini and Sun’s in-depth experience of complex integration and the handling of high volumes of data compliment this solution.

“RFID adds a new level of granularity to supply chain data and has great potential to optimize inventory management across enterprises,” says Christopher Boone, program manager with IDC. “To take advantage of RFID, retailers and CPG companies will have to reevaluate and reengineer supply chain processes as well as the applications and databases that support these processes.” IDC forecasts that spending on RFID for the retail supply chain in the United States will grow from $91.5 million in 2003 to approximately $1.3 billion by 2008.

Capgemini and Sun have collaborated for more than 12 years and have helped their customer’s gauge and respond quickly to changes in the market, accelerate return on capital investments and maintain a competitive advantage. Companies can leverage Capgemini’s Advanced Development Centers (ADC) and Accelerated Solutions Environment (ASE) centers, as well as Sun’s RFID Test Centers where suppliers can test their RFID implementations before investing money on the technology and services. Today, Sun’s Dallas-based RFID Test Center will host an open house at the facility. To register or get further details, visit http://www.avim.com/sun/index.html.

Sun and Capgemini RFID solutions are based on the Sun Java(TM) Enterprise System software, an open and integrated software system, and Sun’s RFID infrastructure software that features self-healing and provisioning and works with leading EPC-enabled readers. Sun’s EPC-compliant RFID software is supported on a full range of systems available from Sun, including Solaris x86 or Linux -based Operating Systems through high-end SMP environments leveraging UltraSPARC(R) processors and Solaris OS.

“Capgemini and Sun are working together with customers to build collaborative RFID solutions that allow organizations of all shapes and sizes to go ‘beyond compliance’ to seek competitive advantage in their supply chain,” stated Mal Postings, global Mobility leader, Capgemini. “We provide companies with an expertise based on first-hand experience and real-world implementations.”

“Our co-developed solution is part of an ongoing effort to deliver the most secure, RFID solutions to the market,” said Julie Sarbacker, director of the Auto-ID Business Unit at Sun Microsystems. “We understand the pain points in the transition and process for retailers and distributors, and we’re designing end-to-end solutions with our partners to reduce the complexity and costs from the equation.”

About Sun Microsystems’ Work With RFID

Sun Microsystems’ industry-leading, standards-based, RFID solution is a comprehensive end-to-end offering that includes hardware, software, services and best-in-class partnerships. For over three years, Sun has been working to make RFID technology an extension of web services and a seamless part of software infrastructure such as the Sun Java Enterprise System. Sun has been a leading member of and advisor to the MIT Auto-ID Center – the driving force for Auto-ID standards, and has participated in numerous successful pilots and deployments. Sun is opening RFID Test Centers around the world to help companies test their RFID implementations before they invest – from tagging products, integrating data into back-end systems and sharing this data with supply chain partners. For more information on Sun’s leading role with RFID visit http://www.sun.com/rfid. To start testing in a Sun RFID Test Center and learn how to get the competitive advantage necessary, email rfid-testcenter@sun.com today.

About the Capgemini Group

Capgemini, one of the world’s foremost providers of Consulting, Technology and Outsourcing services, has a unique way of working with its clients, which it calls the Collaborative Business Experience. Through commitment to mutual success and the achievements of tangible value, the company helps businesses implement growth strategies, leverage technology, and thrive through the power of collaboration. Capgemini employs approximately 48,000 people worldwide (55,000 including Transiciel) and reporting 2003 global revenues of 5.754 billion euros.

More information about individual service lines, offices and research is available at www.capgemini.com

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, Java, 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.