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SAN FRANCISCO, SunNetwork 2003 Conference and Pavilion -- Sun Microsystems, Inc. (NASDAQ:SUNW) today broke security, price and feature barriers in the enterprise desktop market with the PC industry's first alternative in more than 15 years. Sun's desktop solution includes the Sun Java(TM) Desktop System (formerly known as Mad Hatter) secured by the now ubiquitous Java Card(TM) smartcard, the new StarOffice(TM) 7 productivity suite, and the latest enhancements to the Sun Ray(TM) product line. The company also announced an outpouring of support from industry leading Independent Software Vendors (ISVs) including Adobe, Computer Associates and RealNetworks and a partnership with EDS to develop enterprise migration and support services. The Sun Java Desktop System delivers a secure, familiar, affordable desktop solution for enterprise customers. At $100 per desktop, the system includes the full desktop environment and the latest release of Sun's fastest growing open and affordable office productivity suite, StarOffice 7, the latest release of the Java(TM) 2 Standard Edition (J2SE) platform and the popular Mozilla browser, plus e-mail, calendaring and instant messaging applications. "This week's onslaught of viruses and warnings make it painfully obvious that the proprietary desktop installed on 98 percent of the world's desktop PCs is a ticking time-bomb," said Jonathan Schwartz, executive vice president, Software at Sun. "Whether motivated by business continuity objectives, or a desire to save millions in licensing fees, enterprises, academic institutions and governments -- and ultimately consumers -- require a secure, credible and affordable alternative. By leveraging the security infrastructure in deployment on hundreds of millions of mobile phones and in use by the U.S. Government, the Java Card platform for microprocessor smartcard authentication is the foundation of the Java System, and its newest offering, the Java Desktop System." According to research firm IDC, the installed base of paid Linux client operating environments will increase by 43.9 percent compound annual growth rate from 2002-2007. Market surveys show that close to 50 percent of Fortune 2000 CIOs are seriously considering alternative desktops based on cost and the need for more secure systems. Sun is responding to this demand by delivering three new breakthrough client technologies designed to drive down the cost and complexity of desktop computing. Java Desktop System The Sun Java Desktop System, which runs on x86- and SPARC(R)-based systems using either the Solaris(TM) OS or Linux OS, is designed to lower computing costs and reduce desktop management complexities while providing a familiar and secure environment. By focusing on interoperability and user familiarity, the Java Desktop System provides decision makers with a solution that plugs seamlessly into existing environments, working with current files, applications, systems and services. The Java Desktop System supports connectivity to existing enterprise messaging servers as well as the new Java Enterprise System. Sun's desktop system also supports existing file and print services and includes the latest technology applications from RealNetworks, Adobe and Computer Associates. "Computer Associates and Sun recognize the rising importance of Linux in the enterprise and are developing solutions to fully leverage its business potential," said Sam Greenblatt, senior vice president and chief architect for CA's Linux Technology Group. "CA is working closely with Sun to ensure that Java Desktop System adopters can effectively integrate this innovative desktop platform into their existing enterprise environments." EDS Services Alliance Sun and EDS recognize that a diverse workforce requires a flexible desktop solution that varies based on specific worker needs. EDS' support services will map to specific worker requirements across the enterprise and will help keep the platform more resilient. These services are an integral part of the Java Desktop Systems strategy, enabling customers to attain the security, reduced cost and increased reliability via the Java Desktop System. "EDS is excited to support strategic alliance partner, Sun, in this unique desktop solution," stated Kim Stevenson, EDS Global Offering Executive, Desktop and Mobility Services. "We will assist Sun's efforts to drive down costs and complexity for the desktop environment by developing for customers a range of desktop services." The Java Desktop System will be available in Q4 03 for $100 per desktop user. Each user license will include the right to have multiple installations of the Java Desktop on up to two systems so that users can share the same environment at home and at work. For those companies that choose to adopt the $100 per employee model deployed in Sun's Java Enterprise System, the desktop system will be made available for an incremental $50 per employee. For a limited time, Sun will also be offering an aggressive trade-up program for users looking to move off of their existing desktop. By providing Sun their proof of purchase to their existing desktop environment, users will be able to purchase the Java Desktop System for $50. For more information, visit: www.sun.com/javadesktopsystem StarOffice 7 Suite Today Sun is also announcing StarOffice 7, the latest release of its popular, open source-based office productivity suite. StarOffice is available from over 60 OEMs and is distributed to more 40 million users worldwide, making it the highest volume open office productivity suite on the planet. StarOffice 7 will be available at one-fifth the cost of other proprietary office suites in Fall 2003. For more information, visit, www.sun.com/staroffice New features of StarOffice include: Stronger Interoperability -- Easy, fast export to open file formats such as PDF, Flash XML, et al. -- Improved MS Office compatibility -- to import of text formatting, graphics, charts, etc. -- Small device support to view, edit and exchange StarOffice documents with PDAs Ease of Use -- Modular workspace for more control and flexibility -- Keyboard/mouse macro recorder for customized functions New Enterprise Functionality -- StarOffice Software Developers Kit (SDK) for custom integration into third-party and enterprise applications -- Configuration Manager for central configuration of remote users and services Sun Ray Offerings Sun announces enhancements to its Sun Ray product line including the Sun Ray Building Blocks and a new and improved Sun Ray system. The Sun Ray Building Blocks is a maintenance-free desktop offering that combines 15 Sun Ray 1 ultra-thin clients and a Sun Fire(TM) V210 or V250 server with smartcards, for a complete workgroup solution. In addition, the Sun Ray 1g ultra-thin client is being added to the Sun Ray family of products. As the first ultra-thin client that supports resolutions up to 1920 x 1200 dpi at a full 24-bit color resolution, the Sun Ray 1g is targeted for EDA, publishing, software development, network operations centers and mission-critical defense customers. For more information, visit: www.sun.com/sunray