Apple Introduces the New iPhone 3G

Twice as Fast at Half the Price

SAN FRANCISCO--June 9, 2008--Apple today introduced the new iPhone 3G,
combining all the revolutionary features of iPhone with 3G networking that
is twice as fast* as the first generation iPhone, built-in GPS for expanded
location based mobile services, and iPhone 2.0 software which includes
support for Microsoft Exchange ActiveSync and runs the hundreds of third
party applications already built with the recently released iPhone SDK. In
the US the new iPhone 3G is priced at a stunning $199 for the 8GB model,
and just $299 for the 16GB model.** iPhone 3G will be available in more
than 70 countries later this year, beginning with customer availability in
22 countries--Australia, Austria, Belgium, Canada, Denmark, Finland,
France, Germany, Hong Kong, Ireland, Italy, Japan, Mexico, Netherlands, New
Zealand, Norway, Portugal, Spain, Sweden, Switzerland, UK and the US--on
July 11.

"Just one year after launching the iPhone, we're launching the new iPhone
3G that is twice as fast at half the price," said Steve Jobs, Apple's CEO.
" iPhone 3G supports Microsoft Exchange ActiveSync right out of the box,
runs the incredible third party apps created with the iPhone SDK, and will
be available in more than 70 countries around the world this year."

iPhone 3G gives users ever faster access to the Internet and email over
their cellular network with quad-band GSM and tri-band HSDPA for voice and
data connectivity around the world. iPhone 3G supports Wi-Fi, 3G and EDGE
networks and automatically switches between them to ensure the fastest
possible download speeds. The new iPhone 3G also makes it easier to
multi-task with simultaneous voice and data communications, so with iPhone
3G you can browse the web, get map directions, or check your email while
you are on a call.

iPhone 3G includes the new iPhone 2.0 software with both the iPhone SDK and
key enterprise features such as support for Microsoft Exchange ActiveSync
to provide over-the-air push email, contact and calendar syncing as well as
remote wipe and Cisco IPsec VPN for encrypted access to corporate networks.
The iPhone SDK allows developers to create amazing applications that
leverage the iPhone's groundbreaking Multi-Touch user interface, animation
technology, accelerometer and GPS technology on the world's most advanced
mobile platform.

iPhone 3G includes the new App Store, providing iPhone users with native
applications in a variety of categories including games, business, news,
sports, health, reference and travel. The App Store on iPhone works over
cellular networks and Wi-Fi, which means it is accessible from just about
anywhere, so you can purchase and download applications wirelessly and
start using them instantly. Some applications are even free and the App
Store notifies you when application updates are available. The App Store
will be available in 62 countries at launch.

Additional features available with the iPhone 2.0 software include the
ability to do real-time mapping and track your progress with GPS
technology, mass move and delete multiple email messages, search for
contacts, access a new scientific calculator, turn on parental control
restrictions for specified content, save images directly from a web page or
email them to your iPhone and easily transfer them back to your photo
library on your Mac or PC. iPhone 3G delivers an amazing 10 hours of talk
time on 2G networks and 5 hours using 3G, with up to 5 to 6 hours of web
browsing, up to 7 hours for video playback and up to 24 hours for audio
playback.

iPhone 3G takes advantage of MobileMe, a new Internet service that pushes
email, contacts, and calendars from an online "cloud" to native
applications on iPhone, iPod touch, Macs and PCs. With MobileMe email,
messages are pushed instantly to iPhone, removing the need to manually
check email and wait for downloads, and push keeps contacts and calendars
continuously up-to-date so changes made on one device are automatically
updated on other devices. With iPhone, you can even snap a photo and post
it directly to a MobileMe Gallery to share with friends and family.

iPhone 3G will be available in the US on July 11 for a suggested retail
price of $199 (US) for the 8GB model and $299 (US) for the 16GB model in
both Apple and AT&T's retail stores and requires a new two year contract
with AT&T for qualifying customers. iPhone 2.0 software will be available
on July 11 as a free software update via iTunes 7.7 or later for all iPhone
customers. For further information about iPhone 3G pricing and availability
in the US and internationally, visit www.apple.com/iphone.

*Based on 3G and EDGE testing. Actual speeds vary by site conditions.

**Based on iPhone 3G (8GB) and first generation iPhone (8GB) purchases.
Requires new two year AT&T rate plan, sold separately.

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.