Business Practices

Board of Directors

As a publicly traded company, Sun is governed by a Board of Directors. The Board is composed of eleven directors, nine of whom meet the definition of director independence by NASDAQ. The three committees of the Board are: Audit; Corporate Governance and Nominating; and Leadership Development and Compensation. All directors serving on these committees are independent.

Sun's Board of Directors is held accountable to the same Standards of Business Conduct as all Sun employees. Periodically, Sun's Board members participate in a training session to strengthen their knowledge of the company's compliance and ethics related matters.

Board Members:

• Scott G. McNealy (Chairman)
• James L. Barksdale
• Stephen M. Bennett
• Peter L.S. Currie
• Robert J. Finocchio, Jr.
• James H. Greene, Jr.
• Michael E. Marks
• Rahul N. Merchant
• Patricia E. Mitchell
• M. Kenneth Oshman
• P. Anthony Ridder
• Jonathan I. Schwartz

Transparency and Accountability

Transparency is fundamental to building and maintaining trusted relationships with our stakeholders. Our openness allows them to know what is occurring within the company, see how we operate, and get acquainted with many of Sun's employees.

We are continually seeking opportunities to strengthen the policies and procedures necessary to provide openness throughout our organization, and to be held publicly accountable for our actions.

Providing Transparency About Stock Options
Recent events within the technology sector have underscored the need for greater disclosure with respect to how a company determines compensation, such as stock options. As part of Sun's commitment to transparency, we have included detailed information about how Sun grants stock options in our 2006 proxy statement filed with the SEC.

Sun Bloggers

Sun has embraced a progressive approach to transparency through the use of blogs. Today, more than 4,000 Sun employees (as well as former employees) maintain public blogs on our network. Blogging has become a defining aspect of Sun's culture and is something the company strongly encourages. Our employees express their ideas, share their points of view, and communicate with our stakeholders through this online forum.

The content on these blogs is entirely author driven. Our employees are not required to obtain approval for their content, even though Sun does not necessarily agree with everything written. And that fact alone demonstrates how important providing transparency is to Sun.

Sun's Community of Bloggers Includes: