FOR IMMEDIATE RELEASE         FOR MORE INFORMATION
                              Sun Microsystems, Inc.
                              Austin Wing Mayer (415) 336-6295


            SUN ANNOUNCES FINANCING ARRANGEMENTS


     MOUNTAIN VIEW, Calif. - June 16, 1989 - Sun Microsys-
tems, Inc.  (SUNW), announced today a trio of financings
which will make approximately $215,000,000 available to Sun.

     The largest segment of the financing is a revolving
credit and term loan agreement for $100,000,000 with a 5-
year term.  The financing includes The First National Bank
of Boston, as agent, with Citibank, N.A., Security Pacific
National Bank, Bank of America National Trust and Savings
Association, and Barclays Bank PLC.

     The second segment of the financing consists of the
issuance of 3,000,000 shares of Sun common stock to AT&T.
Under the terms of an agreement announced in January 1988,
Sun can sell to AT&T, at Sun's option, newly issued shares
in the amount equal to 15% of Sun's total outstanding common
stock.  This fourth exercise of the option, when closed,
will represent about 3.5% of Sun's outstanding common stock.
As specified in the agreement, Sun can sell the shares to
AT&T in installments at a set premium and AT&T is permitted
to purchase an additional 5% of Sun's common stock in the
open market, thereby acquiring up to a 20% interest in Sun
by January 1991.  Based on recent AT&T filings, Sun esti-
mates that AT&T will own approximately 16% of Sun's common
stock outstanding following consummation of this transac-
tion.

     Sun's proceeds from this stock sale are based on the
average closing price for the last 20 trading days through
June 16, 1989 ($20.0188) plus a premium of 25%, bringing the
total value of the transaction to about $25 per share, or
approximately $75 million.  Following exercise of this
option, Sun is not permitted to issue additional stock to
AT&T for 90 days.  The transaction will close following the
usual regulatory approvals.

     The third element of the financing is a secured real
estate loan in the amount of $40,000,000 through The Toyo
Trust and Banking Company, Limited.

     Sun expects to use the proceeds of these financings for
its working capital needs and to increase its capital base.

     Sun Microsystems, Inc., headquartered in Mountain View,
Calif., is a leading worldwide supplier of network-based
distributed computing systems, including professional works-
tations, servers and UNIX(R) operating system and produc-
tivity software.

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UNIX is a registered trademark of AT&T.