Apple Unveils New iPods

5GB, 10GB and 20GB Versions for Mac & Windows

MACWORLD EXPO, NEW YORK-July 17, 2002-Apple=AE today extended its lead in th=
e
portable digital music market with the introduction of the next generation
iPod=81, available in three configurations: a 5GB model that now starts at
just $299 (US); a 10GB model that is 10 percent thinner for just $399 (US);
and a new 20GB model that can hold 4,000 songs for just $499 (US). Both the
10GB and the 20GB models feature the industry's first solid-state touch
wheel for incredible precision, accuracy and durability, and include a new
Apple carrying case and wired remote. The new iPods will be available for
the first time to both Mac=AE and Windows customers.

"The award-winning iPod now comes in models that are more affordable,
thinner and hold up to 4,000 songs in your pocket," said Steve Jobs,
Apple's CEO. "But the biggest news is that we're bringing the iPod to
Windows users, so they can join this amazing portable digital music
revolution."

iPod is the only portable digital music player with Auto-sync, an
innovative feature that automatically downloads an entire digital music
library into an iPod and keeps it up-to-date whenever the iPod is plugged
back into a Mac. With iPod's built-in FireWire=AE port, a massive 4,000 song
library can be downloaded in just over 30 minutes verses the more than 13
hours it would take to transfer 4,000 songs with USB-based devices. The
iPod's battery provides up to 10 hours of continuous music and recharges
automatically whenever iPod is connected, using power supplied over the
FireWire cable. For Mac users, the new iPod will include the new
iTunes=81 3, Apple's award-winning digital music software.* iTunes 3 adds
dozens of new features including Smart Playlists that automatically and
dynamically update playlists based on simple rules set by the user, Sound
Check for consistent volume playback and support for audio programming from
Audible.com. With these new features, Mac users can easily transfer audio
programming and sound quality adjustments to their iPod to use wherever
they go. Users can now sync information back to iTunes to bookmark where
they left off listening to Audible programming, or to update song
play-counts or last-played dates for iTunes' Smart Playlists. iPod's new
digital clock adds the necessary time and date stamp to individual songs.

For Windows users, the iPod now works seamlessly with MUSICMATCH Jukebox,
the number one selling music software for PCs. iPod is the only MP3 player
to provide Windows customers with Apple's exclusive Auto-sync technology,
to keep their iPod automatically updated every time it is plugged into
their PC. Users also have the option to manually transfer individual songs
or playlists from their MUSICMATCH library to their iPod. iPod for Windows
will ship with MUSICMATCH Jukebox.

iPod for Mac or Windows comes with improved headphones that offer enhanced
bass response, smoother transitions and more accurate high-end sound
reproduction. iPod also features a redesigned and more portable thin
FireWire cable; 20GB and 10GB iPod models include a built-in protective
cover for the FireWire port.

Pricing & Availability
The new iPod will be available for a suggested retail price of $299 (US)
for the 5GB iPod, $399 (US) for the 10GB iPod and $499 (US) for the 20GB
iPod through the Apple Store=AE (www.apple.com), Apple's retail stores and
Apple Authorized Resellers. iPod for Mac will be available in early August
and iPod for Windows will be available in late August. Laser engraving is
available for $49 (US) and can include two lines of text with up to 27
characters per line.

All iPod models include earbud headphones, Apple iPod Power Adapter and
FireWire cable. 10GB and 20GB iPod models include carrying case and wired
remote; optional remote and carrying case are available for 5GB iPod
models. iPod for Windows also includes a 4-pin-to-6-pin FireWire adapter.
iPod for Mac includes iTunes 3; iPod for Windows includes MUSICMATCH
Jukebox software.

iPod for Mac requires Mac=AE OS X version 10.1 or Mac OS 9.2, iTunes 2.0.4
and a Macintosh with built-in FireWire port. iPod for Windows requires a PC
with built-in FireWire or a Windows-certified FireWire card and Windows Me,
Windows 2000, or Windows XP Home or Professional.

*Some iPod features require a Mac and iTunes 3.

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.