2007 Corporate Social Responsibility Report

Low-Cost Measures

We've introduced 27 low-cost or no-cost measures to optimize the operation of our facilities. For example, we've altered our operations to have all U.S. buildings cleaned during daylight hours to keep lights off outside working hours. We expect this change will save 334 metric tons of CO₂ annually.

Capital and Expense Projects

We've identified 45 projects that will reduce our overall energy costs by 4% annually. These include replacing light bulbs with lower wattage bulbs at our campus in Menlo Park, California, which is projected to save 90,584 kWh of electricity annually, and building management systems upgrades across our United Kingdom sites that will save 1000 metric tons of carbon annually.

Hardware Compression Program

In fiscal 2007, we continued our hardware compression program, replacing older technology with some of our newer products. This gives us more compute power from fewer machines while using less space and energy. One such project at our datacenter in Broomfield, Colorado, was discussed in our 2006 CSR report.

Other projects undertaken in fiscal 2007 include:

Working with our facilities management company, Jones Lang LaSalle, we made great progress in fiscal 2007 and are planning even more initiatives for fiscal 2008. Our efforts to reduce the energy consumption of our buildings have focused on:

• Reducing the total space Sun occupies through consolidation of our real estate
• Making the space we do occupy more efficient

In total, we reduced electricity consumption in our U.S. buildings by 22%, gas consumption by 32%, and carbon emissions by 21%.

Real Estate Consolidation Through Open Work

Our Open Work program has dramatically reduced our need for office space. Highly efficient servers have allowed us to consolidate our datacenters in both California and Colorado and reduce space in Massachusetts. We've reduced our real estate holdings by more than 15%, or 2.6 million square feet in fiscal 2007.

Peak-Load Reduction

In 2008, we intend to work with local utility companies to introduce peak-load reduction plans at all of our U.S. facilities. These will include shutting down overhead lighting and other nonessential electrical items during peak usage times. Reducing electricity consumption during peak hours helps improve the overall environmental impact of power generation because the standby generators used when permanent systems are operating at maximum capacity produce more harmful pollution.

LEED Certification

We continue to work toward ENERGY STAR and Leadership in Energy and Environmental Design (LEED) certification for our campuses. ENERGY STAR is a U.S. Environmental Protection Agency initiative that helps companies manage their energy use. LEED is a leading-edge system that helps businesses design, construct, operate, and certify green buildings.

Formed in December 2006, our LEED team includes members of our Environmental Health and Safety, Shared Lab Services, Energy Management, and Critical Operations teams, plus LEED existing-building professionals. The team is developing a strategic plan to ng usecertify Sun facilities to LEED standards. This plan should be completed by the end of the 2009 calendar year. A building at our campus in Menlo Park, California, is beid as a test facility for energy-saving projects. Results are expected by the end of the 2007 calendar year. The team hopes to certify the building and retrofit other buildings on the campus in fiscal 2008 and to begin the certification process for another 10 to 20 buildings in fiscal 2009.