SUN MICROSYSTEMS REPORTS FOURTH QUARTER/YEAR-END RESULTS

MOUNTAIN VIEW, Calif. - August 17, 1989 - Sun Microsystems, Inc.
(SUNW), today reported results for its fourth quarter and fiscal year
ended June 30, 1989.  Revenues for the fourth quarter were $431.2
million, an 18 percent increase over the $365.1 million reported in the
same period a year ago.  The company reported a net loss for the
quarter of $20.3 million, or ($0.25) per share, compared with net
income of $25.3 million, or $0.33 per share, in the fourth quarter a
year ago.

For the full fiscal year, Sun's revenues were up 68% to $1.765 billion
from the $1.052 billion reported in fiscal 1988.  Net income for the
year was down 8% to $60.8 million, or $0.76 per share, from the $66.4
million, or $0.89 per share, reported a year ago.

Scott McNealy, president and CEO of Sun, attributed the fourth quarter
loss to a major product transition, difficulties in securing enough
components to build and ship new products in the quantities and
configurations needed, and difficulties in operating with a new
management information system.  Although the company has taken specific
steps to return to profitability during this transitional period, such
as reducing hiring and curtailing discretionary expenses, a return to
profitability in the current first quarter cannot be assured.

"While the fourth quarter was disappointing," McNealy said, "fiscal
1989 was a year of major accomplishments.  We established SPARCTM as a
worldwide microprocessor standard, increased our installed base of
systems by 85%, expanded our SPARCwareTM offerings  to 750
applications, introduced a host of major new products and in calendar
1988 increased our market share significantly."

"Most satisfying," McNealy said, "was the acceptance of our new
products, comprising the majority of our record orders in the fourth
quarter.  Sun ended fiscal 1989 with a backlog totaling a record $362
million."

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

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SPARC and SPARCware are trademarks of Sun Microsystems, Inc.  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.

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