Apple Upgrades Xserve

Dual 1.33 GHz PowerPC G4 Processors, FireWire 800 & up to 720GB of Storage

CUPERTINO, California-February 10, 2003-Apple=AE today upgraded its Xserve=
=81
1U rack servers to deliver incredible price performance through dual 1.33
GHz PowerPC G4 processors, up to 2GB of 333 MHz Double Data Rate (DDR)
memory and up to 720GB of hot-plug storage, with configurations starting at
just $2,799 (US). Building on the success of its predecessor, the new
Xserve delivers even greater performance at a more affordable price and is
designed to be the perfect complement to Apple's new Xserve RAID storage
system.

"Just six months after we shipped the first Xserve, we're now offering more
power and more storage at an even lower price," said Philip Schiller,
Apple's senior vice president of Worldwide Product Marketing. "Xserve is
already in use at over 100 Fortune 500 companies and hundreds of
universities and schools across the country, and we're making it even
better based on their feedback."

"Apple did their homework about thin servers, and they got it right," said
Jean S. Bozman, research vice president with IDC's Worldwide Server Group.
"Xserve has all the ease of use that Mac customers expect, plus it has the
familiarity and power of UNIX that draws the respect of network
administrators who haven't looked to Apple in years. IDC has already
noticed an uptick in Apple's server shipments since the Xserve first
shipped in July, 2002."

"We were originally looking at a Linux cluster but when Apple announced
Xserve, with its promise of great management tools on a UNIX foundation at
an affordable price, the decision became easy," said Michael Giddings,
assistant professor, Departments of Microbiology/Immunology and Biomedical
Engineering, UNC-Chapel Hill. "Xserve offers significant processing power
and ease of use without the management challenges of Linux or the high
price of Sun."

Now equipped with dual 1.33 GHz PowerPC G4 processors, 2MB of dedicated L3
cache memory per processor, and up to 2GB of 333 MHz DDR memory, the new
Xserve packs phenomenal computational power and a rich feature set into an
affordable 1U rack-optimized enclosure. Xserve enhances the power of its
processors with a 167 MHz system bus and up to 2GB of PC2700 DDR SDRAM for
running demanding applications and working with huge files. Two full-length
64-bit, 66 MHz PCI slots provide up to 533 MB/s throughput and allow easy
expansion to external SCSI and Fibre Channel devices including virtually
unlimited storage with Apple's new Xserve RAID system. One half-length
PCI/AGP slot provides additional PCI expansion or connectivity to a
high-performance graphics card. Dual independent Gigabit Ethernet ports and
FireWire=AE 800 interfaces offer high-performance connectivity.

Xserve comes with the unlimited client edition of Apple's Mac=AE OS X Server
software with built-in file and printer sharing and a robust new journaled
file system that enhances availability by providing rapid file system
recovery following an unplanned shutdown. Xserve with Mac OS X Server
features a number of powerful remote management and monitoring tools that
allow administrators to easily set up and manage all key Mac OS X Server
network services remotely. Xserve is the ideal server solution for file and
print, workgroup management, video streaming, database applications,
computational clustering and web and mail serving. When combined with
Apple's professional video and film editing software Final Cut Pro=AE, Xserv=
e
becomes the ultimate video workstation with flexible storage that can scale
as digital media files grow.

Third party developer momentum for Mac OS X Server continues to build with
recently announced solutions including Macromedia's JRUN J2EE Application
Server and their popular ColdFusion scripting tool; Stalker Communicate
Pro's Mail Server; network, file and printer sharing tools from Helios; and
a clustered failover solution from HA Tech Solutions.

Xserve connects easily to the newly introduced Xserve RAID storage system
using the dual channel 2Gb Apple Fibre Channel PCI Card sold separately at
a industry breakthrough price of $499 (US) (SRP). This high-speed industry
standard storage interface offers dedicated bandwidth with a throughput of
up to 400MB/s. Apple's PCI card comes with two high-speed 2.9-meter copper
cables and accepts SFP (Small Form-factor Pluggable) coppor or optical
transceivers for use with fiber-optic cables.

Apple offers a choice of world-class services and support programs for
Xserve including 4-hour on-site response, 24x7 technical support,
AppleCare=AE Service Parts Kits and the AppleCare Professional SupportLine
and Tools program.

Pricing & Availability The new Xserve will be available in March through
the Apple Store=AE (www.apple.com) and through Apple Authorized Resellers.
Xserve comes in two standard configurations or can be fully customized to
meet specific customer requirements. Build-to-order options can include
memory, storage, optical drives, graphics cards and SCSI and Fibre Channel
cards.

The two standard configurations are:

* single 1.33 GHz PowerPC G4 processor, 256MB DDR 333 RAM, 60GB ATA/133
Apple Drive Module, dual Gigabit Ethernet, CD-ROM and Mac OS X Server with
unlimited clients for an estimated retail price of $2,799 (US); and
* dual 1.33 GHz PowerPC G4 processors, 512MB DDR 333 RAM, 60GB ATA/133
Apple Drive Module, dual Gigabit Ethernet, CD-ROM and Mac OS X Server with
unlimited clients for an estimated retail price of $3,799 (US).

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.