2007 Corporate Social Responsibility Report

In fiscal 2008, we plan to release our next-generation processor with CoolThreads technology — the Sun UltraSPARC T2. Part of our Niagara family of processors, the UltraSPARC T2 provides 8 cores, with 8 threads per core, for a total of 64 threads. This increases capacity and performance while integrating additional networking and security features — all while maintaining our commitment to energy efficiency. Staying true to our belief in open source, we also plan to release the chip architecture to the OpenSPARC community so that chip developers everywhere can build on our innovation.

We intend to release two new servers that feature the UltraSPARC T2 processor. These servers will provide the increased performance and extra features of the new processor without any increase in size or energy use compared with the previous generation of servers, the Sun Fire and Sun SPARC Enterprise T1000 and T2000.

Victoria Falls Processor and Future Systems

Sun is committed to expanding our chip multithreaded CoolThreads technology-based product line, which delivers industry-leading performance, space, and energy savings. In the latter half of fiscal 2008, Sun intends to introduce the Victoria Falls processor, which will enable us to create two-processor-based systems. Part of the Niagara processor family, Victoria Falls is planned to be featured in several new systems that will extend the Sun Fire and Sun SPARC Enterprise server line with CoolThreads technology to our midrange segment. This will allow customers to increase performance on more complex, back-office workloads and increase virtualization and consolidation options for their IT infrastructure.