Apple Ships First Xserve Rack-Mount Servers to Customers

Performance Tests Show Xserve Outperforms More Expensive Servers

CUPERTINO, California-July 1, 2002-Apple=AE today announced that is has begu=
n
shipping Xserve=81, its powerful new rack-mount server, and has received
orders for over 4,000 Xserve servers since its introduction in May. Apple
also announced that industry standard performance tests show Xserve
outperforms more expensive, similarly configured server offerings in web
serving, disk performance and running the mission-critical Biotech
application BLAST.

"We introduced Xserve only a few weeks ago, and we've already received
orders for over 4,000 of them," said Phil Schiller, Apple's senior vice
president, Worldwide Product Marketing. "Xserve's G4 processing power,
massive storage, incredible I/O performance and Mac OS X Server software
with unlimited-client licenses are making it a hit with customers who want
an affordable, powerful 1U rack-mount server."

Industry standard tests show Xserve delivers exceptional performance,
out-classing more expensive, similarly configured servers from Dell, IBM
and Sun. As measured side-by-side in web serving, BLAST implementation and
disk performance, Xserve outperforms its competitors in the following ways:

* Apache Web Server-Xserve can support 60 percent more connections on an
Apache Web Server than an IBM eServer x330. Under industry standard
WebBench* performance benchmarks, an Xserve running Apache on Mac=AE OS X
Server can support 4,051 web connections per second compared to 2,547
connections per second on an IBM eServer x330 running Apache on Linux.
Xserve provides an affordable and robust server platform for even the most
industrial strength web applications.

* BLAST implementation-Xserve is up to 19 times faster than Sun for DNA
searches running BLAST. This is based on a standard search of over 34MB of
data, with Xserve running Apple/Genentech BLAST, a Sun Fire V100 running
NCBI BLAST on Solaris and an IBM x330 running NCBI BLAST on Linux. On a
word length of 8, Apple's Xserve is nearly 8 times faster than IBM and over
19 times faster than Sun. On a word length of 40, Xserve is 5.8 times
faster than IBM and 13.9 times faster than Sun. An Xserve running
Apple/Genentech BLAST reduces search time from hours to minutes for the
kinds of gene searches life sciences customers perform every day.

* Disk performance-Apple's integrated hardware and software and a unique
independent ATA drive architecture allow Xserve to offer higher disk
performance at a lower cost than SCSI drive based servers. Xserve provides
performance of over 110MB using a four way ATA RAID stripe compared with a
Dell PowerEdge 1650 with hardware RAID controller with a three way SCSI
RAID stripe which provides only around 70MB sustained throughput.

Xserve provides an industry leading balance of performance, capacity and
price. Its dual 1 GHz PowerPC G4 processors each have 2MB of Double Data
Rate (DDR) L3 cache, and 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-client 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.

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

Pricing & Availability

Xserve is available immediately through the Apple Store (www.apple.com) and
through Apple Authorized Resellers. Xserve comes 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).

* WebBench(TM) is a trademark of Ziff Davis Publishing Holdings Inc., an
affiliate of eTesting Labs Inc. in the U.S. and other countries. The test
run by Apple used Ziff Davis Media's WebBench(TM) version 4.1 with the
standard test suite STATIC_WB41.TST

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.