November 29, 2004

Sun Aggressively Extends Multi-Platform Managed Services Offerings With SevenSpace Acquisition

SANTA CLARA, Calif., Nov. 29 /PRNewswire-FirstCall/ -- Sun Microsystems, Inc. today announced that it has entered into an agreement to acquire SevenSpace, a privately-held company based in Ashburn, Va. SevenSpace will broaden Sun's Managed Services offerings to include heterogeneous environments, adding support for Hewlett-Packard's legacy HP-UX and IBM's AIX systems, along with Microsoft Windows and Red Hat Linux.

"It is growing more evident by the day that 'one size fits all' outsourcing is history, replaced by Managed Services that improve service levels at reduced costs while allowing customers to maintain control of their competitive advantage," said Marissa Peterson, executive vice president, Sun Services, Worldwide Operations and Chief Customer Advocate. "Sun is focused on addressing these requirements for all platforms, not simply Sun's. The acquisition of SevenSpace reinforces that commitment, and builds upon Sun's remote servicing expertise to extend to a world of new customers. Now they too can take advantage of Sun's pricing and service superiority to lower cost, while dramatically improving service levels."

SevenSpace technology manages enterprise applications, including SAP, Oracle e-business suites, PeopleSoft and Siebel; databases, including Oracle and Microsoft SQL Server; operating systems, including Solaris(TM) OS, Windows and Linux platforms; and network devices while allowing customers to maintain ownership of their people and heterogeneous IT assets. Unlike other outsourcing solutions that are largely people and equipment intensive, SevenSpace has a low equipment and people footprint. As a result, SevenSpace solutions may be implemented in a matter of days, not months or years.

SevenSpace employs a flexible, customer-defined solution methodology that enables customers to tailor an outsourced system management solution to their specific business needs and level of control desired. SevenSpace technologies enable remote system monitoring and management with high levels of operational efficiency and committed service levels. These technologies and processes enable rapid identification, acknowledgment, assessment and resolution of system events as well as change control and system management. The processes are designed to improve customer environment stability and availability while potentially reducing customer system management costs. SevenSpace has more than 100 customers in industries such as financial services, government, manufacturing and retail.

Pursuant to the terms of the agreement, Sun will acquire SevenSpace in an all cash transaction. The acquisition is expected to close by the third quarter of Sun's 2005 fiscal year, ending March 27, 2005. This acquisition is subject to customary closing conditions. Following completion of the acquisition, SevenSpace will become an integral part of Sun's Services organization under the leadership of Peterson.

Sun is planning on offering SevenSpace capabilities as part of the Sun services portfolio to its traditional markets, while developing new service offerings joining SevenSpace technologies and processes with existing Connected Customer investments to address new market opportunities. SevenSpace will continue to support its customers as Sun integrates its support processes. SevenSpace will be sold through direct and partner channels. Further details will be available after the acquisition closes.

"We are excited about the opportunity to extend the benefits of Sun's Connected Customer vision of reduced cost and complexity and accelerated network service deployments to our customers," said Peter Weber, president and chief executive officer, SevenSpace. "We look forward to combining our remote management expertise with Sun to continue to deliver our customers the outstanding solutions, service and support that they have come to expect."

This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding future results or financial performance of Sun Microsystems, Inc., including statements relating to the acquisition of SevenSpace, giving customers improved service levels at lower costs, broadening Sun's Managed Services offerings, enabling high levels of operational efficiency and committed service levels, rapid identification, acknowledgment, assessment and resolution of system events, improvement of environment stability and availability, implementation in a matter of days, the acquisition of SevenSpace in an all cash transaction, the expected close of the acquisition in the third quarter of Sun's 2005 fiscal year, SevenSpace becoming an integral part of Sun's Services organization under the leadership of Marissa Peterson and SevenSpace providing key elements of Sun's connected customer infrastructure. Such statements are just predictions and involve risks and uncertainties such that actual results and performance may differ materially. Factors that might cause such a difference include the closing of the acquisition, successful integration of SevenSpace and its products, services, customers and technologies into Sun, developing and marketing new products and services and obtaining new customers, lack of success in the timely development, production and acceptance of new products and services and in technical advancements, Sun's inability to compete successfully in the highly competitive and rapidly changing marketplace, failure to retain key employees, cancellation or delay of projects, increased competition and continued adverse general economic conditions in the U.S. and internationally. These and other risks are detailed from time to time in Sun's periodic reports that are filed with the Securities and Exchange Commission, including Sun's annual report on Form 10-K for the fiscal year ended June 30, 2004 and our quarterly report on Form 10-Q for the fiscal quarter ended September 26, 2004.

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 industrial-strength hardware, software and services that make the Net work. Sun can be found in more than 100 countries and on the World Wide Web at .

NOTE: Sun, Sun Microsystems, the Sun logo, Solaris and The Network Is The Computer are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries.


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