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                                                        The Florida SunFlash
                   Sun To Sell Shares To AT&T
   
SunFLASH Vol 25 #18					        January 1991 
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MOUNTAIN VIEW, Calif. -- January 4, 1991 -- Sun Microsystems, Inc., (SUNW),
today announced its intention to issue 491,755 shares of its common stock to 
American Telephone & Telegraph Company (AT&T).  Sun's proceeds from the sale 
are expected to be approximately $13.7 million.

    Under the terms of a three-year agreement announced January 6, 1988, Sun 
was permitted to sell to AT&T, at Sun's option, newly issued shares in an 
amount of up to 15% of Sun's outstanding common stock; the exercise of this 
final installment, when closed, will increase AT&T's holdings acquired 
directly from Sun to approximately that amount.  As specified in the agree-
ment, AT&T was also permitted to purchase up to an additional 5% of Sun's 
common stock in the open market, thereby acquiring up to a maximum 20% in-
terest in Sun, AT&T's approximate ownership following this transaction.

    Sun's proceeds from this sale, which is expected to be consummated in 30 
days, are based on the average closing sale price for the last 20 trading days
through January 3, 1991, plus a premium of 25% as specified in the agreement.  

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

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MORE INFORMATION Sun Microsystems, Inc.  Austin Wing Mayer (415) 336-6255

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John McLaughlin, SunFlash editor, flash@sunvice.East.Sun.COM. (305) 776-7770.