Apple Announces iPhone 2.0 Software Beta

Includes SDK & Built-in Microsoft Exchange ActiveSync

CUPERTINO, California--March 6, 2008--Apple today previewed its iPhone 2.0
software, scheduled for release this June, and announced the immediate
availability of a beta release of the software to selected developers and
enterprise customers. The iPhone 2.0 beta release includes both the iPhone
Software Development Kit (SDK) as well as new enterprise features such as
support for Microsoft Exchange ActiveSync to provide secure, over-the-air
push email, contacts and calendars as well as remote wipe, and the addition
of Cisco IPsec VPN for encrypted access to private corporate networks.

"We're excited about creating a vibrant third party developer community
with potentially thousands of native applications for iPhone and iPod
touch," said Steve Jobs, Apple's CEO. "iPhone's enterprise features
combined with its revolutionary Multi-Touch user interface and advanced
software architecture provide the best user experience and the most
advanced software platform ever for a mobile device."

The iPhone SDK provides developers with a rich set of Application
Programming Interfaces (APIs) and tools to create innovative applications
for iPhone and iPod touch. Starting today, anyone can download the beta
iPhone SDK for free and run the iPhone Simulator on their Mac. Apple today
also introduced its new iPhone Developer Program, giving developers
everything they need to create native applications, and the new App Store,
a breakthrough way for developers to wirelessly deliver their applications
to iPhone and iPod touch users.

With the iPhone SDK, third party developers will be able to build native
applications for the iPhone with a rich set of APIs, including programming
interfaces for Core OS, Core Services, Media and Cocoa Touch technologies.
The iPhone SDK will allow developers to create amazing applications that
leverage the iPhone's groundbreaking Multi-Touch user interface, animation
technology, large storage, built-in three-axis accelerometer and
geographical location technology to deliver truly innovative mobile
applications.

Apple has licensed Exchange ActiveSync from Microsoft and is building it
right into the iPhone, so that iPhone will connect out-of-the-box to
Microsoft Exchange Servers 2003 and 2007 for secure over-the-air push
email, contacts, calendars and global address lists. Built-in Exchange
ActiveSync support also enables security features such as remote wipe,
password policies and auto-discovery. The iPhone 2.0 software supports
Cisco IPsec VPN to ensure the highest level of IP-based encryption
available for transmission of sensitive corporate data, as well as the
ability to authenticate using digital certificates or password-based,
multi-factor authentication. The addition of WPA2 Enterprise with 802.1x
authentication enables enterprise customers to deploy iPhone and iPod touch
with the latest standards for protection of Wi-Fi networks.

The iPhone 2.0 software provides a configuration utility that allows IT
administrators to easily and quickly set up many iPhones, including
password policies, VPN setting, installing certificates, email server
settings and more. Once the configuration is defined it can be easily and
securely delivered via web link or email to the user. To install, all the
user has to do is authenticate with a user ID or password, download the
configuration and tap install. Once installed, the user will have access to
all their corporate IT services.

The iPhone 2.0 software release will contain the App Store, a new
application that lets users browse, search, purchase and wirelessly
download third party applications directly onto their iPhone or iPod touch.
The App Store enables developers to reach every iPhone and iPod touch user.
Developers set the price for their applications--including free--and retain
70 percent of all sales revenues. Users can download free applications at
no charge to either the user or developer, or purchase priced applications
with just one click. Enterprise customers will be able to create a secure,
private page on the App Store accessible only by their employees. Apple
will cover all credit card, web hosting, infrastructure and DRM costs
associated with offering applications on the App Store. Third party iPhone
and iPod touch applications must be approved by Apple and will be available
exclusively through the App Store.

The iPhone SDK provides a reliable, fast and secure way to create
innovative applications for the iPhone and iPod touch. In addition to the
rich set of iPhone OS APIs, the iPhone SDK also provides advanced tools for
creating native iPhone and iPod touch applications including: Xcode for
source code editing, project management and graphical debugging; Interface
Builder with drag and drop interface creation and live preview; Instruments
to monitor and optimize iPhone application performance in real time; and
the iPhone Simulator to run and debug applications.

During the beta iPhone SDK program, a limited number of developers will be
accepted into Apple's new iPhone Developer Program and offered the ability
to get code onto iPhones for testing. The Standard Program costs $99 (US)
per year and gives members an iPhone SDK and development tools; access to
pre-release iPhone software; technical support; the ability to get code
onto iPhones for testing; and distribution of applications via the new App
Store. The Enterprise Program costs $299 (US) per year.

In addition to these new iPhone network and security features, the beta
iPhone 2.0 software provides several new Mail features such as the ability
to view PowerPoint attachments, in addition to Word and Excel, as well as
the ability to mass delete and move email messages.

Pricing & Availability

Apple plans to release the final iPhone 2.0 software, including the iPhone
SDK and new enterprise features, as a free software update for all iPhone
customers by the end of June. Third party applications created for the
iPhone will also run on the iPod touch, and iPod touch users will be
required to purchase a software update to run these applications. The free
beta iPhone SDK is available immediately worldwide and can be downloaded at
(developer.apple.com/iphone/program). The iPhone Developer Program will
initially be available in the US and will expand to other countries in the
coming months. Apple is accepting applications beginning today from
enterprise customers who would like to join the private iPhone Enterprise
Beta Program (www.apple.com/iphone/enterprise).

Apple ignited the personal computer revolution in the 1970s with the Apple
II and reinvented the personal computer in the 1980s with the Macintosh.
Today, Apple continues to lead the industry in innovation with its
award-winning computers, OS X operating system and iLife and professional
applications. Apple is also spearheading the digital media revolution with
its iPod portable music and video players and iTunes online store, and has
entered the mobile phone market with its revolutionary iPhone.