FOR IMMEDIATE RELEASE                FOR MORE INFORMATION
                                     Austin Wing Mayer
                                     Director - Investor Relations
                                     (415) 336-6295

                 SUN TO SELL STOCK TO AT&T


MOUNTAIN VIEW, Calif. - February 27, 1989  -  Sun  Microsys-
tems,  Inc.,  (SUNW), today announced its intention to issue
3,211,573  shares  of  its  common  stock  to  AT&T.   Sun's
proceeds from the sale will be $79,110,000.

     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  third  exercise  of  the option, when
closed, will represent 4% 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 13% of  Sun's  common
stock  outstanding  following  consummation of this transac-
tion.

     Sun's proceeds from this sale, expected to be completed
in  30  days, are based on the average closing price for the
last 20 trading days through February  23,  1989  ($19.7063)
plus a premium of 25%, bringing the total value of the tran-
saction to $24.6328 per share.  Following exercise  of  this
option,  Sun  is  not permitted to issue additional stock to
AT&T for 90 days.

     Sun expects to use the proceeds from the sale  for  its
working capital needs and to increase its capital base.

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