SUN ISSUES ADVISORY ON FOURTH FISCAL QUARTER

     MOUNTAIN VIEW, Calif. - June 1, 1989 - Sun Microsys-
tems, Inc.  (SUNW), announced today that net income for the
fourth quarter ending June 30 will be significantly below
the results for the same quarter a year ago and the company
could experience a slight loss depending upon revenue lev-
els.  Revenues for the fourth quarter are expected to fall
below recent expectations and, based on current data, could
fall below the $497 million revenue level of the third quar-
ter ended March 30, 1989.

     Although backlog and incoming order rates remain
strong, Sun's fourth quarter results, scheduled for
announcement in August, will reflect several factors, which
should largely be confined to the quarter.

     The conversion to a new management information system
in April was not without difficulties, typical of projects
of this magnitude.  This slowed production early in the
quarter.  In addition, the introduction this quarter of five
major new products has made it more difficult to forecast
product mix.  Although acceptance of the new products in the
marketplace has been very good and the company expects to
ship about 8,000 units of the new products in the current
quarter, the production ramp for these products is being
somewhat impaired by an insufficient supply of certain com-
ponents.  New product manufacturing delays have also
resulted from continued strong sales of Sun's traditional
products, causing unexpected production demands.  These fac-
tors have hindered Sun's ability to assess accurately the
company's incoming orders, to forecast and to schedule pro-
duction efficiently.

     Sun believes the consequences of these issues will be
confined to the fourth quarter and therefore is not
encouraging any changes in expectations for fiscal 1990,
which Sun believes will be an excellent year.

     Sun Microsystems, Inc., headquartered in Mountain View,
Calif., is one of the world's leading suppliers of network-
based distributed computing systems, including professional
workstations, servers and UNIX(R) operating system and pro-
ductivity software.

                            ###


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.