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                                                        The Florida SunFlash

    Sun Microsystems Completes $100 Million Bank Financing Arrangement
   
SunFLASH Vol 31 #1					           July 1991 
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MOUNTAIN VIEW, Calif.--July 1, 1991--Sun Microsystems, Inc., today
announced that it has entered into an off-balance-sheet accounts
receivable financing arrangement with J.P.Morgan Delaware and Morgan
Guaranty Trust Company of New York.  This arrangement, which involves
the sale of certain accounts receivable, will reduce Sun's accounts 
receivable by $100 million and increase cash by a corresponding 
amount, without adding to Sun's balance sheet indebtedness.  The
agreement is a three-year revolving facility and will be reflected
on Sun's balance sheet for the fiscal year which ended June 30, 1991.
Sun typically reports its year-end results during the first half of
August.

"This arrangement diversifies our funding sources and adds cash to 
the balance sheet at an attractive price," said Thomas J. Meredith, 
vice president and treasurer.  "In addition, it improves our asset 
efficiency and strengthens our credit position while preserving our 
debt capacity under existing lines.  In terms of benefit to 
stockholders, this arrangement increases cash per share by about 15 
percent and will improve our return on assets.  In view of the low 
cost of achieving these benefits, this facility provides a very 
attractive financing alternative for Sun as we assess our future 
needs for capital."  Sun intends to use the proceeds of this 
facility for general working capital purposes.

Sun Microsystems is the world's leading supplier of client/server 
computing solutions, which feature networked workstations and servers 
that store, process and distribute information.  Used for many 
demanding commercial and technical applications, Sun's products command 
the largest share of the computer industry's fastest-growing market 
segment: workstations and servers. The company, founded in 1982 and 
headquartered in Mountain View, Calif., is a multi-billion dollar 
corporation doing business worldwide.

Sun contact:
Austin Wing Mayer (415) 336-0699

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