Sun Reaps Rewards of Reinvigorated 2004 Channel Partner Program

1 January 1970

Sun Microsystems, Inc. (Nasdaq: SUNW) today announced that in fiscal year 2004, which ended June 30, 2004, investments in the iForce(SM) Partner Program resulted in a
year-over-year revenue percentage increase generated through its U.S. partner
and reseller channels. This amounts to over 50 percent of Sun's U.S. revenue
and directly reflects market interest in Sun's new product and services
lineup, including its recent introduction of the Solaris(TM) 10 Operating
System, and commitment to expanding and strengthening its partner programs. In
addition, over calendar year 2004, Sun's iForce program saw growth with new
partners such as Information Builders, Structured, Atempo and Back Bay
Technologies and expanded many of its existing iForce relationships. Sun
Partner Connect, a program targeted at Independent Software Vendors (ISV's),
similarly increased the number of pre-qualified participants.

"The success we have shared with our partners this year recognizes Sun's
commitment to delivering customer value through breakthrough network computing
solutions that address critical business needs," said Greg Stroud, vice
president, iForce Partner Sales at Sun Microsystems. "Sun's iForce priorities
this year were to simplify the engagement process, help partners increase
their margins, and recognize partner investments in Sun's business. Delivering
on these priorities enabled our partners to create and deliver innovative
solutions based on Sun technology."

Sun's iForce Program, which now has over 700 members, benefited from its
key program investments in 2004. Highlights include the Putting Partners First
(PPF) Framework, a comprehensive set of programs developed to assist partners
with deal protection and healthy margin maintenance. Sun also opened an iForce
Solutions Center for Government in Washington, D.C., a real-world environment
that government and commercial customers can leverage to more quickly,
securely and reliably define and solve integration challenges and promote
interoperability across multi-vendor solutions.

"The strength of Sun's product portfolio, which includes a refreshed
server line-up and the new Solaris 10, and its commitment to the success of
its partners are to be applauded," said Rich Severa, president, MOCA. "Sun is
committed to providing programs, services and resources needed to ensure their
partners remain competitive and profitable -- and we are seeing the results."

Programs that Put Partners First

Sun's investment in the iForce program, and its focus on Putting Partners
First, led to the introduction of a wide range of innovative programs for
Sun's partner community throughout the year. These programs include:

-- The SOLAR Edge Elite program designed to improve Sun iForce Partner
profitability by accelerating Opteron(TM) processor-based product sales.
-- Pricing incentives on Sun Java(TM) Enterprise System and Sun Java
Desktop System products and an Enterprise Subscription promotion for the
Solaris Operating System that help iForce partners manage their own costs and
pass on savings to their customers.
-- A Radio Frequency Identification (RFID) offering for iForce partners
enabling companies to develop their own products around RFID.
-- The introduction of the Sun(TM) Learning Platform (SLP), an automated
training and skills management tool that provides iForce Partners with a
competitive opportunity to increase their Sun Microsystems revenue by
accelerating the knowledge transfer for Sun products, technologies and
services.

During 2004, Sun's Putting Partners First framework uncovered over 200 new
customer accounts through the Target Account Rebate Program (TARP), and
provided over 500 Teaming Agreements.

"Sun's Putting Partners First program has re-invigorated their channel and
provided profit margins for their reseller community that equal or exceed the
competition," said Frances Draper, vice president, Sun Business Group, Access
Distribution. "With the new products and services, Sun offers a complete and
competitive product line for the channel to sell. We expect a very strong 2005
with Sun."

FOR MORE INFORMATION:

Brett Smith
Sun Microsystems, Inc.
408-276-6143
brett.smith@sun.com

Ron Davis
Ogilvy PR for Sun Microsystems, Inc.
415-677-2804
ronald.davis@ogilvypr.com