INDUSTRY

SANTA CLARA, CA -- According to the 2Q02 Worldwide Server Database by Gartner Dataquest, Sun Microsystems, Inc. (Nasdaq: SUNW) increased its revenue position with marketshare growth of 10.75% year-over-year and now holds second place with 18.44% marketshare. Furthermore, with just under 80,000 units shipped and $1.86 billion in revenue, Sun reportedly maintains a lead as the number one vendor in the UNIX (R) market worldwide. Overall, Gartner Dataquest's quarterly database shows that Sun's Solaris(TM) Operating Environment and UltraSPARC®-based systems experienced the highest level of revenue and shipment growth year-over-year of the top five IT vendors while most competing systems saw a decline. In the UNIX market, with 63% marketshare in shipments and 44% revenue share, Sun is clearly number one. Compared to the same quarter last year, Sun grew its marketshare in UNIX shipments by 32% while its three closest competitors lost share in double-digit increments. Sun also led the pack in year-over-year UNIX revenue marketshare, where it grew by 15.4%. "Customers continue to vote for Sun as our SPARC/Solaris architecture gains at the expense of the competition across all operating environments," said Shahin Khan, Chief Competitive Officer, Sun Microsystems. "Sun is leading in the commoditization of 64-bit computing and the recent addition of the 32-bit Sun LX50 server running Linux and Solaris enables Sun to serve a larger customer base." These results are based on similarly positive marketshare results posted by Gartner Dataquest for the US, EMEA (Europe, Middle East and Africa) and Asia Pacific regions: In the US, Sun gained revenue marketshare with a 13.5% increase from last year. Sun was also the only company of the top-five UNIX vendors to grow marketshare in revenue and shipments both quarter-over-quarter and year-over-year. With more than $945 million, Sun is number one with 55.6% of the Unix marketshare in revenue. Sun's number one position in the US extends to shipments where its 42,440 units shipped represent 68.4% of the marketshare. Similarly positive growth was seen in EMEA where Sun grew its marketshare leadership position in the UNIX market by nearly 37% in shipments and over 10% in revenue year-over-year. With over 21,700 units shipped in EMEA in 2Q02, Sun has 60.61% marketshare in UNIX shipments and 37% revenue marketshare with over $519 million. In Asia Pacific, Sun's UNIX business grew by almost 21% in revenue year-over-year and 28.2% quarter over quarter with over $211 million. Sun saw a 5.2% increase in Unix shipments compared to the same quarter last year when its top three competitors saw double-digit declines. With almost 7,000 units shipped, Sun posted the strongest sequential revenue marketshare gain (22.9%) of the top 5 vendors in the Asia Pacific region. SunNetwork(SM) 2002 Conference Registration Now Open The SunNetwork(SM) Conference and Pavilion is the only conference dedicated to showcasing end-to-end solutions from Sun and its partners that have revolutionized the Internet, networking and computing industries. The SunNetwork Conference will take place September 18-20, 2002 at the Moscone Center in San Francisco. Register now at http://sun.com/sunnetwork and be among the first to see a new generation of technologies that make the Net work.