Sun Microsystems to acquire StorageTek for $4.1 billion

Sun Microsystems and Storage Technology Corporation announced that they have
entered into a definitive agreement under which Sun will acquire StorageTek. The
combination will create a new global leader in comprehensive network computing
and data management, which collectively had total annual revenues of more than
$13 billion in the past four quarters.

Together, Sun and StorageTek can offer customers the most complete range of
products, services and solutions available for securely managing
mission-critical data assets. By bringing a systems approach to Information
Lifecycle Management (ILM), Sun will be well-positioned to help customers better
manage their growing privacy, security, compliance and policy requirements.

Under the terms of the agreement approved by both boards of directors,
StorageTek stockholders will receive $37 per share in cash for each StorageTek
share for an aggregate value of approximately $4.1 billion, including the
assumption of employee stock options. Sun expects the transaction to be
accretive to non-GAAP earnings in the first 12 months following the closing.

Seott McNEALY “Creating a leader in comprehensive network computing and data management, which collectively had annual revenues of over $13 billion in four quarters”

"Sun's technical and financial strength puts us in a great position to
act as a consolidator in the IT industry. This acquisition is part of an ongoing
strategy to respond to customers seeking to rationalize their data center
purchases ? to free up time and dollars to focus on compliance, architectural
integration, security and, of course, the bottom line," said Scott McNealy,
chairman and chief executive officer, Sun Microsystems, Inc. "With this
announcement, Sun solidifies its leadership position, with the highest volume
computing platforms, the most comprehensive data and identity management
solutions, and when combined with StorageTek, an unmatched ability to earn the
confidence of customers as they develop, deploy and manage information assets
throughout their entire lifecycle."

Following completion of the proposed transaction, which is expected to occur
in late Summer/early Fall 2005, StorageTek will become fully integrated within
Sun's organization. In the interim, a joint team with representatives of both
companies will develop integration plans that build upon the technological,
product and cultural synergies and the best business and product development
practices of both companies.

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