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Solaris Triggers Sun's Server Marketshare Growth

Analyst Firm Shows Sun Gaining Market Share In Worldwide Server Market

Sun's 15.5 Percent Year-to-Year Revenue Growth Tops Competition;
Other Top Four Server Vendors All See Year-Over-Year Revenue Decline

SANTA CLARA, Calif., August 23, 2006 - Sun Microsystems, Inc. (NASDAQ: SUNW) saw its year-to-year server market revenue share grow by 1.7 points as the other top-four server vendors lost share, according to the IDC Q206 Worldwide Quarterly Server Tracker, which was released today. Sun was the only top-four server vendor to achieve year-to-year server factory revenue growth, posting a 15.5% gain.

Sun is now number three in total server revenue, surpassing Dell.

In worldwide UNIX revenue, Sun established itself as the top server vendor by gaining four points of market share while its two nearest competitors declined. Sun now accounts for more than half of UNIX server shipments. Sun's year-to-year UNIX revenue was up 11.8%. Sun also continued to achieve significant growth in its x64 (x86, 64-bit) server line.

"We can attribute our share gains to three simple things," said John Fowler, executive vice president, Sun's systems group. "Mass adoption of the open source Solaris operating platform drives our ecosystem and visibility. Our SPARC and x64 products are absolutely decimating the competition with world record performance. And finally, our ability to provide roadmaps based on Sun's legendary research and development lets customers rely on Sun for the entirety of their systems needs. The data is irrefutable: we are back!"

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

Press Contacts
Sun Microsystems, Inc.
Mark Richardson
650.257-4038
Mark.richardson@sun.com

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