---------------------------------------------------------------------------- SUN MICROSYSTEMS TO INCREASE EQUITY BASE SunFLASH Vol 20 #19 August 1990 ---------------------------------------------------------------------------- MOUNTAIN VIEW, Calif. --August 13, 1990-- Sun Microsystems, Inc. (SUNW) announced today that it has filed with the Securities and Exchange Commission a Registration Statement of a proposed offering by the company of 5,938,834 new shares of Common Stock together with 1,061,166 shares to be offered by certain selling stockholders. Of the shares to be sold, 5,600,000 will be offered in the United States by Goldman, Sachs & Co., Salomon Brothers Inc and Dean Witter Reynolds, Inc. Of the shares to be sold, 1,400,000 will be sold outside the United States by an international syndicate managed by Goldman Sachs International Limited, Salomon Brothers International Limited and Dean Witter Capital Markets---International Ltd. The Underwriters have a 30-day option to purchase an additional 1,050,000 shares of Common Stock from the company to cover over-allotments. "Our balance sheet has been a key area of management focus for Sun throughout FY90, and we have been successful in significantly increasing our level of cash reserves," said Scott G. McNealy, Chairman, President and Chief Executive Officer. "We believe that a strong balance sheet, a substantial cash position and borrowing capacity are important competitive factors in our industry, and this offering will improve our position in all three areas. Importantly, this offering will put stockholders' equity at a level where we feel comfortable at this point in time." Sun Microsystems, Inc., headquartered in Mountain View, California, is a leading worldwide supplier of general purpose computer systems based upon the distributed computing model of networked workstations and servers. A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Copies of the prospectus relating to the offering may be obtained from: Goldman, Sachs & Co., 85 Broad Street, New York, NY 10040; Salomon Brothers Inc. One New York Plaza, New York, NY 10004; and, Dean Witter Reynolds Inc., Two World Trade Center, New York, NY 10048. ### UNIX is a registered trademark of AT&T. All other products or services mentioned in this document are identified by the trademarks or service marks of their respective companies or organizations. Investor Relations Contact: Bob Haggerty (415) 336-2247 Press Contact: Kim Miller (415) 336-7583 ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Sunflash is an electronic mail news service from Sun Microsystems, Ft. Lauderdale, Florida, USA. It is targeted at Sun Users and Customers. As a field sales and support office, we try to keep SunFlash useful and interesting to you. If you have any comments or suggestions for enhancing SunFlash, please send them to us. SunFlash is distributed via a hierarchy of aliases. Try to address change requests to the owner of the alias that you belong to. If you want to be added to the SunFlash alias, please contact the systems engineers at your local Sun office. Many Sun Sales offices distributed SunFlash through their own SunFlash alias. Address comments to the SunFlash editor (John McLaughlin) at sun!sunvice!flash or flash@sunvice.East.Sun.COM. (305) 776-7770.