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SUN MICROSYSTEMS TO ACQUIRE PIRUS NETWORKS

Sun Microsystems Inc has announced that Sun has entered into a definitive agreement to acquire Pirus Networks Inc. Pirus Networks, a privately held company based in Acton, MA, is a recognized leader in multi-protocol, multi-vendor intelligent storage networking for distributed open systems environments. This acquisition will enable Sun to deliver one of the critical data services components of the N1 architecture and strategy, which is being outlined at the SunNetwork Conference in San Francisco.

Pursuant to the terms of the agreement, Sun will acquire Pirus Networks in a stock-for-stock transaction. The acquisition is expected to close in the second quarter of Sun's 2003 fiscal year, which ends December 29, 2002. This acquisition is subject to customary closing conditions, including approval by Pirus Networks' shareholders. Following completion of the acquisition Pirus Networks will become a part of Sun's Network Storage organization, which reports to Mark Canepa, executive vice president.

"By integrating Pirus Networks's technology into our existing end-to-end architecture, we are gaining the ability to create a unified storage network, regardless of vendor. This is a key competitive advantage and major step in delivering on our N1 strategy," said Mark Canepa. "Pirus Networks brings to our team a wealth of experience and knowledge that will be instrumental in helping to build on our N1 strategy of delivering easy-to-manage next-generation networks."

Sun is a major force in the multi-billion dollar storage market and a leader in the movement toward implementing open standards in storage systems. Drawing on its expertise with complex networked systems, Sun is committed to delivering and supporting complete storage solutions resulting in open, scalable and manageable storage networks.

The acquisition of Pirus Networks will allow Sun to leverage critical technologies and expertise to converge advanced data services in a scalable, redundant, highly available storage platform. Pirus Networks' technologies help customers vastly reduce the complexity of their storage networks, boost operational efficiency, and significantly lower the overall cost of storage ownership.

"For over two decades, Sun has been the leader in networked computing and with the N1 strategy, Sun is well positioned to continue to lead the industry," said Rich Napolitano, president and CEO of Pirus Networks. "Pirus Networks has been successful in developing a set of intelligent storage networking technologies that are a perfect complement to Sun's N1 strategy."

About SunNetwork 2002

The SunNetwork 2002 Conference and Pavilion is the only conference dedicated to showcasing end-to-end solutions from Sun and its partners that have revolutionized the Internet, networking and computing industries. SunNetwork 2002 has over 7,000 attendees at its inaugural event participating in over 175 technical sessions and bird of a feather sessions addressing Sun system architecture, network and computing management, services development tools and techniques. SunNetwork 2002 has been co-sponsored by SAP, Sybase, MatrixONE, PTC, Vignette and JNI Corporation and has over 200 technology exhibits demonstrating how Sun's technology is solving real-world technology and network challenges. For more information on all related announcements, please visit the SunNetwork 2002 Website at sunnetwork.sun.com.

About Sun Microsystems Inc

Since its inception in 1982, a singular vision -- "The Network Is The Computer" -- has propelled Sun Microsystems Inc to its position as a leading provider of industrial-strength hardware, software and services that make the Net work. Sun can be found in more than 170 countries and on the World Wide Web at sun.com.

About Pirus Networks

Pirus Networks, a leader in intelligent storage networking, was founded in December 1999. Pirus Networks is active in industry standard organizations, including membership in the Storage Networking Industry Association (SNIA), Internet Engineering Task Force (IETF) IP Storage Working Groups and the Fibre Channel Industry Association (FCIA). Pirus Networks is creating a new category of intelligent storage networking systems that are designed to reduce storage ownership costs and streamline data management.