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                                                        The Florida SunFlash
   
    AT&T To Sell Sun Stock Back to Sun and Institutional Investors

SunFLASH Vol 30 #6					           June 1991 
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NEW YORK, NY -- June 3, 1991 -- AT&T and Sun Microsystems, Inc., today
announced that they have reached an agreement under which Sun will
repurchase a portion of AT&T's approximately 19 percent equity interest
in Sun.  AT&T also announced that the remainder of its holdings in the
California-based computer company will be placed with institutional
investors.

Both companies said the transactions reflect the changing relationship
between the two companies.

Sun will repurchase approximately five million of AT&T's 19.1 million
shares of Sun common stock at a price of $36 1/4 per share as part of
its ongoing program to manage its share dilution by funding its
employee stock benefit programs through stock repurchases.   Most of
the remaining shares are being purchased by Salomon Brothers, Inc., and
will be resold to institutional buyers.  The transactions will result
in a pre-tax gain to AT&T of about $137 million.  AT&T expects to sell
the balance of the shares at a later date.

Under an agreement reached in January 1988, AT&T purchased about 19
percent of Sun's common stock over the past three years.  Under an
October 1987 agreement between the two companies, Sun worked with AT&T
to develop UNIX System V Release 4, which is widely accepted as a
standard computer operating system.   Sun is the leading supplier of
network-based client/server computing systems.

"Both companies have benefited from the relationship," said Robert M.
Kavner, AT&T group executive for Data Systems and Federal Systems.
"For AT&T, it accelerated the development of the newest version of the
UNIX system, and earned us a profit on our investment.  Sun, on the
other hand, received significant investment funds, and it has put those
funds to good use.

"But in view of the recent merger agreement between AT&T and NCR,"
Kavner said, "both AT&T and Sun management agree that the time is now
right to concentrate our efforts on our respective businesses."

Scott McNealy, chairman, president and CEO of Sun Microsystems, Inc.,
added, "We are pleased with this outcome.  Our relationships with AT&T
in many areas remain strong as a customer, supplier and technology
partner, but with the acquisition of NCR by AT&T, we both believe the
equity relationship is no longer appropriate.  We were able to take
this opportunity to accelerate our dilution control efforts by
acquiring these shares to fund future issuances under our existing
employee stock benefit plans."

Kavner emphasized that the sale of Sun stock in no way reflects AT&T's
view of Sun's future prospects and said that the companies will
continue to buy and sell from one another and to have important
business connections, such as Sun's recent investment in AT&T's UNIX
System Laboratories, Inc.  "Given the interest both companies have in
UNIX System V Release 4, we see many opportunities for us to cooperate
in the future," Kavner said.

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