Sun Microsystems, Inc. Acquires Beduin Communications; New Micro-Applications Suite Enhances Sun's Java Software Offering for the Consumer Device Market.

PALO ALTO, Calif.--(BUSINESS WIRE)--Oct. 20, 1998--Sun Microsystems, Inc., today announced that it has acquired Beduin Communications Inc., a privately held Canadian company specializing in Java(TM) application products for the emerging consumer device market. This acquisition extends Sun's current offerings in this high growth market and supports Sun's goal to enable the networked consumer with the platforms, tools and applications to participate in the global network.

"With the acquisition of Beduin, Sun gains a crucial component to the embedded software solutions that companies working on next generation consumer devices are demanding," said Mark Tolliver, president, Sun Microsystems' Consumer and Embedded. "Sun is committed to providing our customers with the best implementations of Java technology. This application suite, combined with the PersonalJava(TM) environment is a cornerstone for consumer device companies launching network-enabled products."

"Both Sun and Beduin share a common vision to provide feature-rich, cost-effective and reliable embedded software for the growing market for networked consumer devices," said Bob Tennant, President and Co-Founder, Beduin Communications Inc. "Integrating our product line and development expertise with Sun's existing Java software products for the consumer and embedded market, creates an exciting combination that we hope will accelerate the deployment of innovative consumer devices," added John Criswick, senior vice president and Co-Founder, Beduin Communications Inc.

Personal Applications, Innovating for a Growing Market

Sun intends to ship a suite of products gained from the acquisition in the next two quarters under the name Personal Applications. The first product a compact browser, is written entirely in the Java programming language and supports today's Internet standards to ensure users can access a wide range of Web pages. The browser provides integrated telephony capabilities that allow a user to click on a phone number in a Web page and dial the number automatically.

The browser is scheduled to ship by the end of this calendar year. Additional applications will follow to complete the suite, including an email and organizer application.

"The combination of this core Java application suite with the PersonalJava environment provides a powerful foundation, upon which innovative consumer devices can be built and innovative applications can run," continued Mark Tolliver, president, Sun Microsystem's Consumer and Embedded. "We expect competition in the applications market and we are counting on software developers to continue to create innovative applications for the PersonalJava application environment to increase innovation in the market, and ultimately lead to greater customer choice."

Sun's Personal Applications are optimized to run on the PersonalJava platform, the application environment for consumer devices. Sun currently has over 25 licensees of the PersonalJava platform. Personal Applications will provide the core applications manufacturers need to ship with their products with optimal user functionality.

The above news release contains forward looking statements that involve risks and uncertainties. Sun's actual results may vary materially from the results discussed in the forward-looking statements. Factors that may cause such a difference include; those risks surrounding timely development, production and acceptance of new products and services, Sun's ability to compete in the highly competitive and rapidly changing marketplace and the other risks detailed from time to time in Sun's periodic reports filed with the Securities and Exchange commission, including, but not limited to Form 10-K for fiscal year ended June 30, 1998.

About Beduin Communications Inc.

Founded in 1997, Beduin Communications Inc. has established itself as an innovator in the emerging internet appliance market. The company's focus has been the growing market for smart phones, devices that integrate traditional telephony features with the added functionality of the network, such as email and web access.

About Sun Microsystems, Inc.

Since its inception in 1982, a singular vision, "The Network Is The Computer(TM)," has propelled Sun Microsystems, Inc. (NASDAQ:SUNW), 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://www.sun.com.

Sun, the Sun logo, Sun Microsystems, Java, PersonalJava and Personal Applications are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and in other countries.

Press announcements and other information about Sun Microsystems are available on the Internet via the World Wide Web using a tool such as Netscape Navigator or Sun's HotJava. Type http://www.sun.com at the URL prompt.