Apple Merges iPod & iPod photo Lines

CUPERTINO, California--June 28, 2005--Apple today announced that the iPod
and iPod photo lines are merging, creating a single line of white iPods
that all feature color displays with the ability to view album artwork,
photos and play slideshows in stunning color. The simplified iPod lineup
features a 20GB model, holding up to 5,000 songs priced at just $299 and a
60GB model, holding up to 15,000 songs priced at $399. Also starting today,
iPods will offer an easy to use Podcast menu, including bookmarking within
a Podcast and the ability to display Podcast artwork in color.

"iPod customers love to enhance their listening experience with color,"
said Greg Joswiak, Apple's vice president of iPod Product Marketing. "By
simplifying our iPod lineup to include 20GB and 60GB models with color
screens and the new Podcast menu, iPod and iTunes provide the world's
easiest and appealing way to discover, subscribe, manage and listen to
Podcasts."

iPod's color display provides a crisp, clear full color experience for
users to take their entire photo library with them or for viewing album
artwork, calendars, contacts and games. The 60GB iPod holds up to 25,000
digital photos, and the 20GB iPod holds up to 20,000 digital photos. Both
models feature the ability to import photos from a digital camera with the
optional iPod Camera Connector and let users combine their favorite music
and photos to create slideshows for viewing right on their iPod or for
sharing with family and friends on a big screen TV.

The new version of iTunes (also announced today) enables anyone to quickly
and easily find and subscribe to their favorite Podcasts so that every time
there's a new episode, it's automatically downloaded to their Mac or PC and
Auto-Synced to their iPod. iTunes also makes it easy to manage multiple
Podcast subscriptions with simple organization and display by episode and
date.

iPod and iTunes are leading the digital music revolution. With over 15
million iPods sold as of March 31, the iPod is the world's most popular
digital music player, and the iTunes Music Store is the number one online
music store with over 430 million songs purchased and downloaded worldwide.

Pricing & Availability
The 20GB and 60GB iPods for Mac or Windows are available immediately
worldwide for a suggested retail price of $299 (US) and $399 (US)
respectively. The new iPod U2 Special Edition also includes a color screen
and is now more affordable at just $329, and the 1GB iPod shuffle is now
just $129. The new Podcast menu is available starting today via a free iPod
software update for all Click Wheel iPods and iPod minis from
www.apple.com/ipod. All iPods are available through the Apple Store
(www.apple.com), Apple's retail stores and Apple Authorized Resellers.

Each iPod with color display includes earbud headphones, a USB 2.0 cable, a
USB power adapter and iTunes for Mac and Windows computers. iPod shuffle
includes earbud headphones, lanyard and iTunes for Mac and Windows
computers. Optional accessories with the following suggested retail prices
include the iPod dock kit for $39 (US), in-ear headphones for $39 (US), the
iPod Camera Connector for $29 (US) and FireWire cable for $19 (US). Laser
engraving is available for iPod for free from the Apple Store
(www.apple.com) and can include two lines of text with up to 27 characters
per line.

iPod requires a Mac with a USB 2.0 port or FireWire*, Mac OS X version
10.2.8 or 10.3.4 or later and iPhoto 4.0.3 or later; or a Windows PC with a
USB 2.0 or FireWire port or USB 2.0 or FireWire card and Windows 2000 with
Service Pack 4 or later, or Windows XP Home or Professional with Service
Pack 2 or later, and Adobe Photoshop Album 2.0 or Elements 3.0 or later.

Battery life and number of charge cycles vary by use and settings. See
www.apple.com/batteries for more information. Music capacity is based on
four minutes per song and 128-Kbps AAC encoding; photo capacity is based on
iPod-viewable photos transferred from iTunes.

*Firewire options require an optional cable, 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 desktop and notebook computers, OS X operating system, and
iLife and professional applications. Apple is also spearheading the digital
music revolution with its iPod portable music players and iTunes online
music store.