Sun Microsystems, Inc. Announces Filing of Shelf Registration for $1,000,000,000 Principal Amount of Senior and Subordinated Debt Securities and Common Stock.

PALO ALTO, Calif.--(BUSINESS WIRE)--Oct. 16, 1997--Sun Microsystems, Inc., (NASDAQ:SUNW) today announced the filing of a shelf-registration statement (the "Registration Statement") with the Securities and Exchange Commission under the Securities Act of 1933, as amended.

The Registration Statement would provide Sun the flexibility to raise up to $1,000,000,000 from offerings of senior or subordinated debt securities, common stock or a combination thereof (the "Securities") at such times that Sun believes raising funds through a Registration Statement would be advantageous to Sun provided that the appropriate market conditions exist to raise such capital. After the Registration Statement has become effective, Sun may from time to time offer the Securities pursuant to Rule 415 in one or more separate series, in amounts, at prices and on terms to be set forth in the prospectus contained in the Registration Statement (the "Prospectus"), and in one or more supplements to the Prospectus ("Prospectus Supplements"). A copy of the Prospectus and any Prospectus Supplements relating to any offering of the Securities will be obtainable at the time of any such offering from Sun Microsystems, Inc., 901 San Antonio Road, Palo Alto, California, 94303, and from the underwriters, if any, of any such offering.

A registration statement relating to these Securities has been filed with the Securities and Exchange Commission but has not yet become effective. These Securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Since its inception in 1982, a singular vision, "The Network is the Computer(TM)," has propelled Sun Microsystems, Inc., (NASDAQ "SUNW"), to its position as a leading provider of hardware, software and services for establishing enterprise-wide intranets and expanding the power of the Internet. With more than $8 billion in annual revenues, Sun can be found in more than 150 countries and on the WorldWide Web at http://www.sun.com . -0-

Note to Editors: Sun, the Sun logo, Sun Microsystems, and The Network Is The Computer are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries. All SPARC trademarks are used under license and are trademarks or registered trademarks of SPARC International, Inc. in the United States and other countries. Products bearing SPARC trademarks are based upon an architecture developed by Sun Microsystems, Inc.

CONTACT: Sun Microsystems, Inc.

Mark Paisley, 650/336-2238 (IR)

mark.paisley@sun.com

Susanne Vagadori, 650/786-8281

susanne.vagadori@sun.com

Mike Shuster (650) 786-9037 (Industry Analyst)

michael.shuster@sun.com

http://www.sun.com