SUN MICROSYSTEMS ANNOUNCES STOCK REPURCHASE PROGRAMSUN MICROSYSTEMS ANNOUNCES STOCK REPURCHASE PROGRAMSun Intends to Acquire up to $1.5 Billion of its Outstanding Common Stock
PALO ALTO, CA -- February 22, 2001 --- Sun Microsystems, Inc., (NASDAQ: SUNW), a leading provider of hardware, software and services that power the Internet, announced today that its Board of Directors authorized a stock repurchase program and that Sun intends to acquire up to $1.5 billion of its outstanding common stock in the open market. This repurchase program is in addition to Sun's ongoing systematic stock repurchase program. Under this new program, share purchases may be made from time to time depending on market conditions, share price and other factors. The purchase will be funded from available working capital and the repurchased shares will be held in treasury or used for ongoing stock issuances such as for employee stock plans. As of January 31, 2001, Sun had approximately 3.26 billion shares of common stock outstanding. Executive Vice President of Corporate Resources and Chief Financial Officer Michael E. Lehman remarked, "The Board's approval of this program reflects a strong belief in Sun's future. With the recent slow down of the U.S. economy and accompanying decline in Sun's stock price, Sun believes the current valuation does not reflect the underlying long term value of the company. Sun's balance sheet continues to remain strong with total assets of $18.1 billion as of December 31, 2000. This includes approximately $7.4 billion of cash and marketable securities. We believe repurchasing Sun stock is one of the best investments Sun can make right now and underscores our commitment to enhancing stockholder value." This news release contains forward-looking statements, including statements relating to Sun's future, Sun's belief about Sun's long-term value, the strength of Sun's balance sheet and Sun's belief that the repurchase of its stock is one of the best investments it can make. These forward looking statements are based on current expectations that involve risks and uncertainties. Sun's actual results may differ materially from the results discussed in these forward-looking statements. Factors that might cause such a difference include risks related to adverse changes in general economic conditions, failure to reduce costs, lack of success in technical advancements, the timely development, production and acceptance of new products and services, Sun's ability to compete in the highly competitive and rapidly changing marketplace and risks associated with acquisitions. These and other risks are detailed from time to time in Sun's periodic reports filed with the Securities and Exchange Commission, including, but not limited to, its annual report on Form 10-K for its fiscal year ended June 30, 2000 and its quarterly reports on Form 10-Q for the quarters ended October 1, 2000 and December 31, 2000. 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 power the Internet and allow companies worldwide to dot-com their businesses. With $17.6 billion in annual revenues, Sun can be found in more than 170 countries and on the World Wide Web at http://sun.com.
Sun, Sun Microsystems, the Sun logo, Sun StorEdge, Solaris, Sun Blade, Netra and The Network is The Computer are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries. All SPARC trademarks are used under license and are trademarks or registered trademarks of SPARC International, Inc. in the United States and other countries. Products bearing SPARC trademarks are based upon an architecture developed by Sun Microsystems, Inc.PR Contacts for Press and Analysts:
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