Competitive Profiles Monitors Many More

Financials Headquarters

SUN 2001 2000 1999 901 San Antonio Rd. Revenue $ 18,250 $ 15,721 $ 11,726 Palo Alto, CA 94303 650-960-1300 Cost of Goods Sold $ 10,302 $ 7,549 $ 5,648 http://www.sun.com/ Gross Profit Margin 44% 52% 52% SG&A Expense $ 6,560 $ 5,779 $ 4,436 Management Operating Income $ 1,388 $ 2,393 $ 1,642 Total Net Income $ 927 $ 1,854 $ 1,031 Revenue by Product Line 2000

CEO Microelec. $326 M Add-Ons $645 M SW Storage $2,838 M 6% Wkstn. $1,373 M Pres. HW Services 80% HE $2,107M StarFire+StarCat 15% Servers MR $3,487M Enterprise+SunFire $7,216 M LE $4,691M Ultra, Netra, Cobalt Comp. Systems

Total Revenue: $15,720

Business S un Microsystems is a leading maker of UNIX-based, number-crunching workstation computers, storage devices, and servers for p owering corporate computer networks and Web sites. The company is the largest to make computers that use its own chips, SPARC, a nd operating systems, Solaris. Sun's most talked-about product may be Java, a programming language intended to create software that can run unchanged on any kind of computer. Its Jini technology enables electronic devices to communicate with each other and o ver networks. Sun sells to customers in the telecommunications, financial, healthcare, retail, government, manufacturing, and e ducation markets. Since the company's inception in 1982, a singular vision -- The Network Is The Computer-- has propelled Sun M icrosystems to its position as a leading provider of industrial-strength hardware, software, and services that power the Net and allow e nterprises worldwide to take their businesses to the nth. Industry & Competition (for subscribed clients only) WW Market Forecasts – Enterprise Servers, Storage, Software, Appliances, Services Sun Market Shares – Servers (HE,MR,WkStns), Storage, Software (Java,Sunsoft), Services Sun Competitive Positioning by Products – Servers, Storage, Software, Enterprise & Web Services Sun Market Strategy - Enterprise, Midrange, SMB, Service Providers Sun Financials by Business Segments, Product Lines, Geography, Sales & Earnings Model Product Summary

Desktop T Information Appliances T Storage T UltraSparc Wkstn. SunRay Appliance 1, 100, 150 Sun StorEdge Sun Blade 100, 1000 Ultra 5, 10, 60, 80

Peripherals T Software T Servers T Network Cards Sun Cluster Sun Netra Chips Sun Management Sun Cobalt Boards Sun HighGround SunFire Printers Java SunEnterprise Competitive Profiles Monitors many more...

FINANCIALS 1997 1998 1999 2000 2001

Revenue $ 8,598 $ 9,811 $ 11,726 $ 15,721 $ 18,250 Cost of Goods Sold n/a n/a $ 5,648 $ 7,549 $ 10,302

Gross Profit $ 4,278 $ 5,112 $ 6,078 $ 8,172 $ 7,948 Gross Profit Margin 50% 52% 52% 52% 44%

SG&A Expense $ 2,402 $ 2,792 $ 4,436 $ 5,779 $ 6,560

Operating Income $ 1,027 $ 1,126 $ 1,642 $ 2,393 $ 1,388

Operating Margin 12% 12% 14% 15% 8%

Net Income $ 736 $ 902 $ 1,031 $ 1,854 $ 927 Net Profit Margin 9% 9% 9% 12% 5%

Sun Microsystem - Financials

20,000

18,000

16,000 Revenues 14,000

12,000

10,000 $M Gross Profit 8,000

6,000

4,000 Oper Income

2,000 Net Income 0 1997 1998 1999 2000 2001

IBM

DELL

CPQ HWP

SUNW

Revenues by Product line

1999 2000 2001 2002E

High-end Workstations>$15K $ 830 $ 803 $ 775 $ 545 Low-end Workstations<$15K 615 570 525 420

Servers 4,880 7,216 8,481 7,917 Hardware Workstation & Server Add-ons 606 645 600 565 Storage 2,265 2,838 3,285 3,365

Third Part Electronics 240 326 355 245 JavaSoft Division 141 153 165 170

Software SunSoft Division 593 870 841 818 SunService Division 1,635 2,301 3,234 4,225

Systems and Technology

Market Shares

W.W. Server Market Share - 2000 W.W. Disk Storage Market - 2000 Total Revenue : $59,853 M Total Revenue : $31,737 M

CPQ CPQ IBM 18% 17% 22% IBM 11%

EMC 18%

SUN SUN 10% 17%

Other HP

23% 9%

HP Other DELL 15% 34% 6%

W.W. Storage SW Market - 2000 W.W. Services Market - 2000 Total Revenue: $5,252 M Total Revenue: $384, 960 M

Other IBM EOS 37% 9% HP 5%Fujitsu 2% 3% Anderson CPQ 3% 3% CSC Sun 3%

IBM 1% Sun 16% 1%

EMC Other Veritas 25% 76% 16%

Sun Products UltraSparc Workstations

Sun Blade[tm] 100 Sun Blade[tm] 1000

Workstations Ultra[tm] 5 Ultra[tm] 10

Ultra[tm] 60 Ultra[tm] 80

Sun Ray 1, 100, 150 Appliance Information Appliances

High-End Data Center Systems

Sun StorEdge 9910, 9960 Mid-Range Storage Arrays

Sun StorEdge T3 (Enterprise) Sun StorEdge A5200

Workgroup Storage Arrays Sun StorEdge T3 (Workgroup)

Sun StorEdge A3500/A3500 FC

Sun StorEdge A1000/D1000 Storage Sun StorEdge S1 Arrays

Desktop Storage Sun StorEdge Multipack

Sun StorEdge Unipack NAS solutions

Sun StorEdge N8200 Sun StorEdge N8400

Sun StorEdge N8600

Storage SW Sun Highground

Servers Netra t 1120/1125

Netra t 1400/1405 Netra t1 and Netra T1 AC200/DC200 Rack Optimized Servers and Netra X1 Storage Storage Systems Netra st A1000/D1000

Netra st D130 Netra E1

Sun Cobalt[tm] Qube 3 Server Appliance Sun Cobalt[tm] RaQ XTR Server Appliance Server Appliances Sun Cobalt[tm] RaQ 4 Server Appliance Sun Cobalt[tm] CacheRaQ 4 Server Appliance

Workgroup Sun Enterprise U5S

Sun Enterprise U10S

Sun Enterprise 220R Sun Enterprise 250

Sun Fire 280R Sun Enterprise 420R

Sun Enterprise 450 Midrange

Sun Fire 3800 Servers Sun Fire 4800

Sun Fire 4810

Sun Fire 6800 Sun Enterprise 3500

Sun Enterprise 4500 Sun Enterprise 5500

Sun Enterprise 6500 High-End

Sun Fire 15K Sun Enterprise 10000

Solaris 9 Development

Forte Java Forte C++

Forte Fortran/HPC Forte C Software Network Connectivity

SunLink Server Performance

SunCluster Storage

Sun StorEdge DataShare

World Wide IT Market Forecast

$1,600,000

Services

Enterprise SW

Storage Workstations HW Servers $- PC

2000 2001 2002 2003 2004

Software Partnerships

Integrated Apps.: Content Management: Security & Payment: Ariba Bulldog Baltimore ATG Interwoven Entrust Broadvision Vignette ISS iPlanet (Sun-Netscape Virage Trintech Alliance) Intershop Interactive Media: E-marketplace: Macromedia Interworld Moai Technologies Open Market RealNetworks Trading Dynamics (Ariba) Oracle Web/App Server: Portal Builders: Profiling/Personalization: BEA (WebLogic) Autonomy Accrue IPlanet Epicentric Andromedia (Macromedia) Lotus Engage Billing/IBP & P: TIBCO.net net.Genesis Portal NetPerceptions iPlanet Catalogs & Configurators: Just-in-time Selectica Customer Care: Trilogy Graham Performance: Siebel Inktomi Workflow/Collaboration: Vantive (Peoplesoft) Resonate FileNet TimesTen Documentum Storage Management: Lotus VERITAS