Sun Drops Prices on Popular Mid-Range and High-End Workstation and
Workgroup Server Lines

Sun Enables More Customers to Step Up to the Performance of
Multiprocessor UNIX Systems

PALO ALTO, Calif., Jan. 27 /PRNewswire/NEWSdesk -- Sun Microsystems,
Inc. (Nasdaq: SUNW) today dropped prices by as much as 35 percent on
its popular Ultra(TM) 60 and Ultra 2 workstations, once again
challenging the competition with even lower prices and improved
performance in its high-end multiprocessor-capable solutions.
Customers can now take advantage of Sun's highest-performance,
reliable, scalable workstations for as little as $9,995. In addition,
Sun also lowered prices by as much as 35 percent on its successful
Sun Enterprise(TM) 2, Sun Enterprise 250 and Sun Enterprise 450
servers. Sun's price cuts further strengthen the company's leadership
position, as well as opens the door for those customers who had
previously been limited to Windows NT or lower-performance UNIX(R)
systems.

Sun reduced prices without compromising performance in the Ultra 60
and Ultra 2 workstations and in the Sun Enterprise servers. As the
UNIX market leader, the large volumes and the commonality of
components across the product lines, results in an economies of scale
savings which Sun is able to pass on to its customers. All of the
systems take advantage of the robust Solaris Operating
Environment(TM) software and Sun's UltraSPARC(TM) processor
technology. As always, Sun's products are 100 percent binary
compatible, eliminating the hassles of recompiling code traditionally
associated with upgrading hardware or software.

"Having invigorated the entry-level market with the Ultra 5 and Ultra
10 workstations, Sun is now focusing on driving down prices for mid-
to high-end systems to offer workstation customers more
bang-for-their-buck," said Ken Okin, vice president and general
manager of Workstation Products, Sun Microsystems, Inc. "With these
price cuts, companies can now afford to increase compute power on
individual desks, boosting company productivity and employee
satisfaction."

Affordable Multiprocessor Computing

Compared with the SGI Octane 250, Sun's Ultra 60 Model 1360 features
a higher speed processor, four times the cache and 60 percent better
CDRS performance for a 60 percent lower cost(1). Living up to its
legacy of offering innovative technology and superior performance at
competitive prices, Sun's most successful high-end workstation, the
Ultra 60 workstation, is now available for under $10,000(2). The
multiprocessor-capable Ultra 60 workstation, used in technically
demanding markets such as medical imaging, 3D mechanical design,
simulation and analysis, delivers superior price/performance when
compared with other leading UNIX workstations in its class.

When comparing the dual-processor Ultra 60 workstation to a similarly
configured SGI Octane 250, Sun comes out on top with significantly
higher performance at a 70 percent lower cost(3). Dropping by 35
percent to $13,595(4), the dual-360MHz processor Ultra 60 system is
an excellent, reliable solution for compute-intensive markets such as
computer-aided engineering and design automation, where raw
multiprocessing performance and system flexibility are a must.

Delivering More Computing Power for Less

Sun has upgraded the base-level graphics and doubled the hard drive
capacity on its entry Ultra 2 configuration(5). These enhancements
come at a 30 percent lower base price. This popular system now offers
the latest generation of Sun's Creator3D graphics technology in its
base configuration.

Graphics on the Ultra 2, like all of Sun's workstations, are designed
as an integral part of the system -- not as an afterthought. Because
Sun's graphics are closely integrated with the Ultra 2 workstation's
UltraSPARC processor and memory subsystem through the system's high
bandwidth UPA interconnect, these workstations take full advantage of
floating-point processor speed, with visual instruction set
(VIS)(TM)(6) support and the memory capacity to deliver a truly
powerful graphics system. Creator3D technology features high
performance accelerated imaging, high resolution 2D and 24-bit double
and Z-buffered 3D rendering, making the Ultra 2 workstation an ideal
graphics workstation for high-end imaging, modeling and
visualization. Lower Prices on Workgroup Servers

Sun's aggressive price cuts across its industry-leading workgroup
server line once again prove the company's commitment to delivering
robust, yet affordable solutions for small businesses and workgroups.

Multiprocessor-capable servers, now available for just $7,995, help
Sun maintain its competitive advantage with proven enterprise-class
technologies. The servers deliver superior scalability and
availability over competitive systems based on PC technologies for
business critical applications such as database, Internet/intranet,
ERP and collaborative computing.

Priced competitively for the workgroup space, the rack-ready Sun
Enterprise 250 server was reduced by 20 percent to just $7,995 (7).
The Sun Enterprise 2 server prices were cut by up to 35 percent,
dropping the system to $16,975.(8) Sun also dropped prices on its Sun
Enterprise 450 server by as much as 13 percent(9).

"Sun is enjoying tremendous success with its Sun Enterprise workgroup
server line," said Mark Canepa, vice president and general manager of
workgroup servers, Sun Microsystems, Inc. "The volumes for Sun's
workgroup servers and its workstations provide great economies of
scale. We're thrilled to be able to pass these savings along to the
customer."

Availability and Support

All of the new prices are available immediately. All systems are
available worldwide through Sun's direct sales force, including Sun
telesales, and its indirect channels, including Sun authorized
resellers and systems integrators. Complete pricing information is
available through a Sun sales representative, Sun telesales or Sun's
indirect channel. Sun provides comprehensive services through
hardware and software support, flexible training, and expert
integration, consulting and management services designed to meet
customer needs. Worldwide availability of services will vary by
country. All prices listed are US list price and subject to change.

About Sun Microsystems, Inc.

Since its inception in 1982, a singular vision, "The Network Is The
Computer(TM)," has propelled Sun Microsystems, Inc., to its position
as a leading provider of high quality hardware, software and services
for establishing enterprise-wide intranets and expanding the power of
the Internet. With more than $10 billion in annual revenues, Sun can
be found in more than 150 countries and on the World Wide Web at
http://sun.com.
(1) - Ultra 60 Model 1360 vs. SGI Octane 250
Ultra 60 SGI Octane 250
360MHz UltraSPARC-II 250MHz R10000 processor
256MB memory 256MB memory
4MB cache 1MB cache -) 4 x the cache
9GB hard drive 9GB hard drive
Elite3D m6 graphics MXE graphics
CDRS: 139.3 CDRS: 55.52 -) 151% better performance
$/CDRS: $118 $/CDRS: $758 -) 84% better price/perf
$16,495 $42,095 -) 60% lower price

(2) - Ultra 60 Model 1360
1 x 360MHz UltraSPARC-II, 128MB memory, 9GB hard drive, 4MB cache,
Creator3D Graphics. Was $13,595 -) Now $9,995 = 26% price red

(3) - Ultra 60 Model 2360 vs. dual-processor SGI Octane 250
Ultra 60 SGI Octane 250
2x360MHz UltraSPARC-II 2x250MHz R10000 processor
256MB memory 256MB memory
4MB cache 1MB cache -) 4 x the cache
9GB hard drive 9GB hard drive
Elite3D m6 graphics MXE graphics
CDRS: 139.3 CDRS: 55.52 -) 151% better performance
$/CDRS: $136 $/CDRS: $1,124 -) 88% lower price/perf
$18,995 $62,395 -) 70% lower price

(4) - Ultra 60 Model 2360
2 x 360MHz UltraSPARC-II, 256MB memory, 9GB hard drive, 4MB cache,
Creator3D Graphics. Was $20,870 -) Now $13,595 = 35% price
reduction

(5) - Ultra 2 Model 1300
Current Base Configuration -) January 26, 1999 Base Configuration
1 x 300MHz UltraSPARC-II 1 x 300MHz UltraSPARC-II
128MB memory 128MB memory
2MB cache 2MB cache
4GB hard drive 9GB hard drive -) faster, bigger hard drive
Creator Graphics Creator3D Graphics -) improved, 3D graphics
$15,645 $10,900 -) 30% price reduction

(6) - Visual Instruction Set (VIS)
VIS is a RISC instruction set designed to accelerate multimedia,
image processing and networking applications. UltraSPARC was the
first microprocessor to incorporate support for 2D and 3D imaging
and graphics, video compression and decompression, audio, networking,
encryption and other algorithms.

(7) - Sun Enterprise 250 Server
1 x 250MHz UltraSPARC-II, 128MB memory, 9GB hard drive, 1MB cache.
Was $9,960 -) Now $7,995 = 20% price reduction

(8) - Sun Enterprise 2 Server Model 2300
2 x 300MHz UltraSPARC-II, 512MB memory, 9GB hard drive, 2MB cache.
Was $26,245 -) Now $16,975 = 35% price reduction

(9) - Sun Enterprise 450 Server
1 x 300MHz UltraSPARC-II, 128MB memory, 4GB hard drive, 2MB cache.
Was $19,735 -) Now $17,235 = 13% price reduction