CalPERS to Honor Leaders in Corporate Governance May 15.

Business Editors

SACRAMENTO, Calif.--(BUSINESS WIRE)--April 27, 2000

The California Public Employees' Retirement System (CalPERS) announced today it will honor a U.S corporation, a board of directors, a chief executive officer and an independent director for positive and courageous contributions in corporate governance.

Apple Computer, the Texas Instrument's Board of Directors, Time Warner's Chairman and CEO Gerald M. Levin, and retiring General Motor' s director John G. Smale are the recipients of CalPERS Corporate Governance Award of Courage for advancing good corporate governance in today's marketplace. Award recipients will be honored at a dinner on May 15, 2000 at CalPERS headquarters in Sacramento, California. "We are honoring these companies and individuals for their courage and dedication to shareowner interests and the advancement of good corporate governance," said William D. Crist, President of CalPERS Board of Administration. "In each area, they represent shining examples of effective governance in corporate America."

Corporate Award --         Apple Computer, Inc.
                           Cupertino, California

Apple Computer is being honored for its achievement in financial performance and improved corporate governance practices since being named to CalPERS "Focus List" of underperformers in 1996.

CalPERS named Apple to the "Focus List" at a time when the computer manufacturer's annualized three-year return was 8.3 percent, trailing the 32.7 percent return for its industry peers.

Over the next year, CalPERS met with the company's officers and heard from its employees who shared the goal of improving Apple's performance. In the Fall of 1997, Steve Jobs was appointed interim CEO and Apple experienced dramatic change. Jobs formed a new board of directors that included industry leaders Larry Elison, Chief Executive Officer of Oracle, Jerry York, former Chief Financial Officer of IBM, and Bill Campbell, then CEO of Intuit. A new senior management team was put in place, and a new relationship was forged with Microsoft. Apple has made innovative improvements to its product portfolio and iMac was designed and successfully launched as one of the company's most successful personal computers to date.

Since 1996, Apple has earned a cumulative 512 percent return as of March 31, 2000. CalPERS owns more than 971,000 shares of Apple stock.

Board of Directors Award --      Texas Instruments Incorporated
                                 Dallas, Texas

Texas Instruments' (TI) Board of Directors will be honored for its dedication to shareowner interests, for its advancement of good corporate governance practices on its board, and for the company's financial performance.

The governance structure of TI's Board encourages active participation in the oversight and evaluation of the company's business affairs and management's strategic plans. The strength of TI's dedication to governance is reflected in the practices of the Board, which include:

--  A Board composed of independent directors;
--  A strong committee structure that keeps the Board informed and
    involved;
--  Different directors who assume leadership roles to meet the
    changing demands of the company;
--  Open lines of communication between the Board and senior
    management to ensure the Board does not exclusively rely on the
    CEO for information;
--  In recognition of directors' significant commitment of time and
    energy, adequate compensation, including stock-based compensation,
    to align directors' interests with those of shareowners;
--  Board evaluations to improve the quality of its oversight; and
--  An established corporate governance training program for senior
    managers.

TI's governance practices are designed to be both appropriate and flexible and to ensure accountability to the company's shareowners.

The company's one-year cumulative return was approximately 223 percent as of March 31, 2000, compared to a 146 percent return for its industry peers. CalPERS owns 3.8 million shares in Texas Instruments stock.

Chief Executive Officer Award --    Gerald M. Levin
                                    Time Warner Inc.

CalPERS will honor Gerald M. Levin for his commitment to the principle that CEOs are responsible to shareowners and accountable to the Board of Directors. CalPERS has been a steadfast investor in Time Warner during the past 15 years, and has - on occasion - questioned certain aspects of the company's governance structure. Levin has listened to the System's concerns and recognized the value of an effective corporate-shareowner dialogue. Most recently, Time Warner and AOL announced one of the largest mergers in American business - a merger that will create the world's first Internet-age media and communications company. Levin will become CEO of the new AOL Time Warner and Steve Case, currently chairman and CEO of America Online, will become chairman of the board. CalPERS believes this combination of business talent and leadership, coupled with the split of authority, further demonstrates Levin's vision, courage and dedication to shareowner and corporate governance interests.

From the date Levin became Chairman of the Board in 1992 through March 31, 2000, Time Warner's stock price earned a compound annual return of approximately 30 percent versus an 18 percent compound annual return for the S&P 500 Index. CalPERS owns more than 5.6 million shares of Time Warner stock.

Independent Director Award --       John G. Smale
                                    General Motors' Board of Directors

CalPERS honors Smale for his work in leading General Motors' re-examination of fundamental governance processes, including CEO succession planning. Through the adoption of the now-renowned "GM Corporate Governance Guidelines," General Motors -- under the direction of Smale -- brought corporate governance into the mainstream. The "GM Corporate Governance Guidelines" have become a leading benchmark against which all other governance structures are judged. Nearly every major company in America has followed the lead of General Motors. Smale also held the daunting role of Independent Chair of the GM Board, and guided GM through a CEO succession in that role. Smale is a leading example of how much change value an individual independent director can bring.

General Motors has earned a one-year cumulative return of approximately 18 percent compared to the S&P Auto Index return of a negative 2.3 percent. CalPERS owns more than 3.3 million shares of General Motors stock.

CalPERS is the nation's largest public pension fund with assets totaling more than $170 billion. The System provides retirement and health benefits to more than 1 million state and local public employees and their families. For further information on CalPERS, please visit the System's Web site at www.calpers.ca.gov.