Apple Enhances Revolutionary iPhone with Software Update

MACWORLD SAN FRANCISCO--January 15, 2008--Apple today announced a free
software update for its revolutionary iPhone that allows users to
automatically find their location using the redesigned Maps application*;
text message multiple people in one message; create Web Clips for their
favorite websites; customize their home screen; and watch movies rented
from the new iTunes Movie Rentals right on their iPhone. With its
revolutionary multi-touch user interface and pioneering software, users can
easily add significant new features to their iPhone through software
updates whenever an update becomes available. New iPhone products shipping
from the factory will include the software update and existing iPhone
customers will automatically get the update for free when they sync their
iPhone with iTunes (www.itunes.com).

"iPhone doesn't stand still--we're making it better and better all the
time," said Steve Jobs, Apple's CEO. "We've delighted millions of users
with this revolutionary and magical product and it's great to share these
improvements with them."

Maps, one of the most popular and helpful applications on iPhone, has a new
interface that is simpler and easier to use and adds incredible new
features such as the ability to find your location automatically. With just
the tap of a button, iPhone can now triangulate your position using nearby
Wi-Fi base stations or cellular towers. You can use this as a starting or
ending point for directions or to find local points of interest. The new
hybrid map view combines map view and satellite view so you can see major
street names overlaid on satellite imagery.

Users can now create Web Clips--icons on the home screen that take you
directly to your favorite websites, including to the exact spot you have
zoomed into. Web Clips are a great way to easily track websites that you
frequently check such as news, blogs, sports sites and movie listings. In
addition, users can now customize their home screen by repositioning any of
the icons, and even create up to nine different home screens that they can
easily flick between.

iPhone's new software update also adds the ability to send the same SMS
text message to multiple people, and iPhone saves a history of your text
messages, so with one tap you can send a new message to the same group.

With Apple's new iTunes Movie Rentals, movie fans can rent movies on their
computer, easily and quickly transfer them to their iPhone, and watch them
anywhere on iPhone's gorgeous 3.5 inch screen. Users can also now navigate
forward or backward through their movies by chapters, select alternate
language tracks and view subtitles, if available.

Pricing & Availability

The iPhone software update 1.1.3 is available immediately for free via
iTunes 7.5 or later for all existing iPhone customers in the US, UK,
Germany and France. New iPhone products shipping from the factory will
include the software update and existing iPhone customers will
automatically get the update for free when they sync their iPhone with
iTunes (www.itunes.com). iTunes Movie Rentals are available in the US only.
Further information for iPhone can be found at www.apple.com/iphone.

*Availability and precision of Maps positioning features will vary
depending on actual location.

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.