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SUN EXTENDS TOTAL MARKET LEADERSHIP IN SERVER SHIPMENTS

SUN EXTENDS TOTAL MARKET LEADERSHIP IN SERVER SHIPMENTS

Sun Maintains Number One Position in Worldwide UNIX Marketshare and Strengthens its Overall Market Position While Competitors See a Decline in Shipments


SANTA CLARA, Calif. - May 30, 2002 -- Sun Microsystems (Nasdaq: SUNW) has bolstered its total market position and extended its lead in the UNIX® market where it remains number one while the competition has remained flat or seen a decrease in server marketshare sequentially from 4Q01, according to the 1Q02 Gartner Dataquest Worldwide server quarterly statistics database.

Gartner Dataquest reports that Sun maintains the lead in UNIX marketshare worldwide in terms of both shipments and revenue for 1Q02. With 56% marketshare in shipments, Sun gained 6.2 marketshare percentage points year-over-year and 5.5 points sequentially, while its top three competitors posted declines. Additionally, with 41% revenue marketshare, Sun saw a 4% sequential increase while its top three competitors lost revenue marketshare or remained flat.

"Worldwide and across the market, as well as in UNIX shipments and revenue, Sun is gaining marketshare while our competition is flat or declining," said Shahin Khan, Chief Competitive Officer, Sun Microsystems. "Our position is strong and getting stronger by the quarter. This is a decisive victory!"

These results come on the heels of similarly positive marketshare results posted by Gartner Dataquest for the US, EMEA (Europe, Middle East and Africa) and Asia Pacific regions:

In the US, Sun shipped more UNIX systems than all of its competitors combined, with growth rates of almost 17% year-on-year and 5% sequentially. Additionally, in the US, Sun's Solaris Operating Environment and UltraSPARC®-based systems experienced the highest level of revenue growth year-over-year of the top five IT vendors.

In EMEA, Sun saw sequential growth in the UNIX market both in terms of revenue and shipments. According to the report, Sun ships over half of the UNIX servers in the EMEA region and has seen a 9% increase in shipments and a 10% increase in revenue from last quarter while its top three competitors saw declines.

In Asia Pacific, Sun demonstrated similarly strong growth both year-on-year and sequentially in the UNIX market and remains number one. Sequentially, Sun increased its lead in shipments by over 6% and, as a result, ships more UNIX servers in the region than its top three competitors combined. Sun also posted the strongest sequential revenue marketshare gain of all its competitors in the Asia Pacific region.

These worldwide marketshare gains can be attributed to Sun's strong UltraSPARC III-based product line spanning low to high-end systems. In the entry-level, the Sun Fire V880 continues to shine with sequential growth of nearly 183% in shipments and 178% in revenue. In the high-end, the Sun Fire 15K grew by over 100% in shipments and 65% in revenue sequentially. And in the midrange, the Sun Fire 6800 continued its growth by another 18 percent from last quarter.

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 170 countries and on the World Wide Web at http://sun.com


Sun, Sun Microsystems, the Sun logo, Sun Fire, Solaris, 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 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. UNIX is a registered trademark in the United States and other countries, exclusively licensed through X/Open Company, Ltd.

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