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Sun Microsystems Completes SeeBeyond Acquisition

Sun Microsystems Completes SeeBeyond Acquisition

Company Announces Immediate Availability of the Sixth Suite of the Java Enterprise System, Delivering Industry's Most Comprehensive Offering for Development of Service Oriented Architecture-Based Enterprise Applications

Completion of Deal for $383 Million Reflects Sun's Strategic Investment in Business Integration Market

SANTA CLARA, CALIF. -- August 25, 2005 - Sun Microsystems, Inc. (NASDAQ: SUNW) today announced it has completed its acquisition of SeeBeyond Technology Corporation (NASDAQ: SBYN) following approval of SeeBeyond stockholders. Trading of SeeBeyond common stock has been suspended. Under the terms of the agreement, SeeBeyond stockholders will receive $4.25 per share for an aggregate consideration of approximately $383 million, which includes the assumption of employee stock options. With the close of the acquisition, SeeBeyond becomes a subsidiary operating within Sun's Software Division.

Sun also announced today the availability of the Sun Java Integration Suite, the sixth suite in Sun's Java Enterprise System (Java ES). Combined with the most advanced operating system on earth, Solaris 10, this new suite makes the Java ES an even more attractive environment for businesses and system integrators to build next-generation customer solutions. More details on the the sixth Java ES suite are outlined in a separate press release to be issued today.

"The SeeBeyond technology dramatically enhances the value of our Java Enterprise System platform and delivers a whole solution with next-generation technology and services to integrate legacy application into new composite applications," said Jonathan Schwartz, president and chief operating officer, Sun Microsystems, Inc. "The synergies between the two companies are remarkable - we have completed the acquisition ahead of schedule, we have integrated core technologies into our product portfolio, and we have formally engaged with more than 2,000 customers worldwide to solve their complex integration problems."

About Sun Microsystems, Inc.

A singular vision -- "The Network Is The Computer" -- guides Sun in the development of technologies that power the world's most important markets. Sun's philosophy of sharing innovation and building communities is at the forefront of the next wave of computing: the Participation Age. Sun can be found in more than 100 countries and on the Web at http://sun.com.


Sun, Sun Microsystems, the Sun logo, Solaris, Java, and The Network Is The Computer are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries.

Safe Harbor
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding the expected financial performance of Sun Microsystems, Inc. following the consummation of the acquisition, Sun's ability to make the Java ES an even more attractive environment for businesses and system integrators, Sun's ability to dramatically enhance the value of our Java Enterprise System stack and our ability to deliver a whole solution with next-generation technology and services. Such statements are just predictions and involve risks and uncertainties such that actual results and performance may differ materially. Factors that might cause such a difference include the failure to successfully integrate SeeBeyond and its employees into Sun and achieve expected synergies, compete successfully in this highly competitive and rapidly changing marketplace, and retain key employees. These and other risks are detailed from time to time in Sun's periodic reports that are filed with the Securities and Exchange Commission, including Sun's annual report on Form 10-K for the fiscal year ended June 30, 2004 and its quarterly reports on Form 10-Q for the fiscal quarters ended September 26, 2004, December 26, 2004 and March 27, 2005.

 
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