Apple Introduces Xserve 1U Rack-Mount Server
New Server Delivers Multiprocessing, Large Storage & Fast Networking

CUPERTINO, California-May 14, 2002-Apple=AE today introduced Xserve=81, a
powerful 1U rack-mount server designed with Apple's legendary ease-of-use
for groundbreakingly simple set up and remote management. Designed from the
ground up as the perfect complement to Apple's UNIX-based Mac=AE OS X Server
software, Xserve is ideal for business and education customers.

Xserve provides exceptional performance in a compact 1U rack-mount server.
Its dual 1 GHz PowerPC G4 processors each have 2MB of Double Data Rate
(DDR) L3 cache, and Xserve is the first 1U server to use DDR SDRAM memory
with up to 2GB capacity. Xserve offers best-in-class storage, with up to
480GB on four hot-plug ATA/100 drives, and best-in-class networking with
standard dual Gigabit Ethernet ports. Xserve includes an unlimited user
license to Mac OS X Server software, offering users a perfect combination
for file/print service, video streaming, database applications,
computational clustering and web and mail serving.

"Xserve is the result of listening to our customers," said Steve Jobs,
Apple's CEO. "Xserve is super easy to set up, and is easily integrated into
existing networks. Plus, with its unlimited-user software license at no
extra cost, Xserve is a tremendously cost effective server with real UNIX
under the hood."

"We saw Xserve and were blown away. We are adding 40 new servers before the
end of the year, and Xserve is perfect for our outdoor creative and media
production needs," said Joe Shannon, Clear Channel Worldwide's CTO. "As the
global leader in outdoor advertising, radio broadcasting and live
entertainment, Clear Channel will be using Xserve to satisfy our demanding
network requirements."

"Apple's powerful new Xserve rack-mount workgroup server solution combined
with Apple's UNIX-based Mac OS X Server software is a superior platform for
Oracle9i Database" said Michael Rocha, senior vice president, Product
Services and Platform Technologies, Oracle Corp. "Oracle's leading database
clustering technology, Oracle9i Real Application Clusters, running on
Xserve will deliver enterprise-class solutions to our joint customers and
create new opportunities for both companies."

Xserve is perfect for I/O intensive applications such as digital video,
high-resolution digital imagery and large scientific datasets. With
capacity and performance rivaling much more expensive servers from Dell,
HP, IBM and Sun, Xserve delivers high-speed networking, 15 gigaflops of
computational power and nearly a half terabyte of hot-plug storage. With
four independent ATA/100 drive channels, Xserve offers nearly double the
performance of other 1U servers that utilize more expensive Ultra3 SCSI
drives.

Xserve features several new capabilities designed to make server set up and
remote management easier than ever before. Server Admin=81, a powerful new
services monitoring and remote management tool, allows administrators to
easily set up and manage all key Mac OS X Server network services remotely.
Server Monitor=81, a powerful new hardware monitoring tool, allows system
administrators to remotely monitor one or many servers, get detailed
subsystem views instantly, produce reports and receive system notification
alerts via text capable email, pager, cell phones or PDAs.

Apple is offering a choice of world-class services and support programs
including 4-hour onsite response, 24x7 technical support, AppleCare Service
Parts Kits and the AppleCare Professional SupportLine and Tools program.

Additional Xserve features include:

* single or dual 1 GHz PowerPC G4 processors;
* 2MB DDR L3 cache per processor;
* three PCI slots, two of which are 64-bit, 66 MHz PCI slots for high
performance I/O-the fastest ever in a Mac=AE;
* up to 2GB of DDR high-performance memory running at 266 MHz-the first DDR
main memory in a Mac;
* software RAID mirroring for protection of important data and RAID
striping for additional performance;
* a VGA graphics card that supports headless booting and enables easy
connectivity to industry standard cross-platform devices;
* an optional AGP 4X graphics card to connect displays, keyboards and a
mouse for "Mac-in-a-rack" solutions;
* three 400Mbps FireWire=AE ports with two accessible on the back panel and
one on the front panel for quick access;
* two USB ports, one DB-9 serial console port and an optional Ultra3 SCSI
card for connecting to external storage and backup devices;
* an optional fiber Gigabit Ethernet adapter;
* Mac OS X Server software featuring QuickTime=AE Streaming Server,
WebObjects and the latest advancements from the Open Source community such
as Apache, Samba, PHP, MySQL and Tomcat; and
* Native protocol support for AFP over TCP/IP, SMB/CIFS, FTP and NFS
enables easy integration into existing Mac, UNIX or Windows networks.

Pricing & Availability
Xserve will be available in June 2002, and customers can place orders
beginning today through the Apple Store=AE (www.apple.com) and through Apple
Authorized Resellers. Xserve will come in two standard configurations, or
can be fully customized to meet specific customer requirements. The two
standard configurations are:

* single 1 GHz PowerPC G4 processor, 256MB DDR RAM, 60GB ATA/100 Apple
Drive Module, dual Gigabit Ethernet, CD-ROM and Mac OS X Server with
unlimited clients for a suggested list price of $2,999 (US); and

* dual 1 GHz PowerPC G4 processors, 512MB DDR RAM, 60GB ATA/100 Apple Drive
Module, dual Gigabit Ethernet, CD-ROM and Mac OS X Server with unlimited
clients for a suggested list price of $3,999 (US).

Apple today also previewed its new high-performance RAID storage product
featuring industry standard 2Gb Fiber Channel, which will be introduced
later this year.

Apple ignited the personal computer revolution in the 1970s with the Apple
II and reinvented the personal computer in the 1980s with the Macintosh.
Apple is committed to bringing the best personal computing experience to
students, educators, creative professionals and consumers around the world
through its innovative hardware, software and Internet offerings.