Apple Upgrades Xserve G5

Dual 2.3 GHz PowerPC G5 Processors, 1.15 GHz System Bus & Up to 1.2TB of
Storage

CUPERTINO, California-January 4, 2005-Apple today upgraded its Xserve 1U
rack optimized server to deliver dual 64-bit 2.3 GHz PowerPC G5 processors
with over 35 gigaflops of processing power per system and the industry's
fastest front side 1U server system bus, running at up to 1.15 GHz,
providing up to 9.2 GBps of bandwidth per processor and up to three 400GB
drives, achieving a groundbreaking 1.2TB of hot-plug storage. With
configurations starting at just $2,999, it is the ideal server for
everything from file and print serving to computational clusters.

"We improved the best 1U server in the industry with more power and more
storage for the same breakthrough price," said Philip Schiller, Apple's
senior vice president of Worldwide Product Marketing. "With 64-bit
processing power coupled with Apple's legendary ease of use, Xserve G5
delivers unbeatable price performance and manageability. Xserve G5 ships
with an unlimited client access license of Mac OS X Server that allows
users to connect an unlimited number of Mac, Windows or Linux clients to
the server without additional software licensing fees."

"The 2.3 GHz Xserve formed the basis of Virginia Tech's upgraded System X
supercomputer cluster. 1,100 Xserve servers are now achieving over 12.25
trillion operations per second, a speed increase of 20 percent over the
original system's performance," said Srinidhi Varadarajan, director of the
Terascale Computing Facility at Virginia Tech. "The Xserve G5 cluster
delivers unrivaled computing power per unit density, low power consumption
and lower heat dissipation at a fraction of the cost of other
supercomputers."

Now equipped with dual 2.3 GHz PowerPC G5 processors and up to 8GB of 400
MHz DDR memory, the new Xserve packs phenomenal computational power,
revolutionary I/O and storage performance along with best-in-class
management tools in an optimized 1U rack-optimized enclosure. Xserve G5
supports up to three 7200 rpm 400GB Serial ATA Apple Drive modules,
offering an industry leading 1.2TB of internal storage that can deliver
800GB of internal RAID 5 protected storage when combined with Apple's PCI
Hardware RAID card. Two full-length 64-bit, 133 MHz PCI-X slots provide up
to 1 GBps throughput and allow easy expansion to high performance storage
and networking cards, such as SCSI, Fibre Channel and third party solutions
such as InfiniBand.

Xserve G5 ships with an unlimited client edition of Mac OS X Server version
10.3 "Panther" software pre-installed. Panther Server integrates leading
open source and open standards software with easy-to-use management tools
that make it easy to deploy popular open source solutions for Mac, Windows
and Linux clients.

Apple offers a choice of world-class services and support programs for
Xserve including AppleCare Premium Service that offers four hour on-site
response and 24x7 technical support. For self-servicing customers, Apple
offers complete Service Parts Kits, which address over ninety percent of
potential field problems.

Pricing & Availability Xserve G5 is available immediately through the Apple
Store (www.apple.com) and Apple Authorized Resellers. Xserve G5 comes in
three standard configurations or can be fully customized to meet specific
customer requirements. The three standard Xserve G5 configurations include:

* a single 2.0 GHz PowerPC G5 processor with 1GB of PC3200 ECC RAM, a
single 80GB Apple Drive Module with expandability for up to 1.2TB, dual
Gigabit Ethernet on-board, a Combo (DVD-ROM/CD-RW) drive, FireWire 800 and
USB 2.0, and an unlimited client license of Mac OS X Server for a suggested
retail price of $2,999 (US);

* dual 2.3 GHz PowerPC G5 processors with 1GB of PC3200 ECC RAM, a single
80GB Apple Drive Module with expandability for up to 1.2TB, dual Gigabit
Ethernet on-board, a Combo (DVD-ROM/CD-RW) drive, FireWire 800 and USB 2.0,
and an unlimited client license of Mac OS X Server for a suggested retail
price of $3,999 (US); and

* cluster-optimized dual 2.3 GHz PowerPC G5 processors with 512MB of PC3200
ECC RAM, a single 80GB Apple Drive Module, dual Gigabit Ethernet on-board,
FireWire 800 and USB 2.0, and a 10-client license of Mac OS X Server for a
suggested retail price that starts at $2,999 (US) per cluster node.

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.