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2 These slides contain projections or other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding Sun's systems strategy and Fujitsu engagements for the Solaris market. These forward-looking statements involve risks and uncertainties and actual results could differ materially from those contained in these projections and forward-looking statements. Factors that could cause actual results to differ materially from those contained in these projections and forward-looking statements include: risks associated with developing, designing, manufacturing and distributing new products; lack of success in technological advancements; pricing pressures; lack of customer acceptance of new products; the possibility of errors or defects in new products; competition; adverse business conditions; failure to retain key employees; the cancellation or delay of projects; our reliance on single-source suppliers; risks associated with our ability to purchase a sufficient amount of components to meet demand; inventory risks; delays in product development or customer acceptance and implementation of new products and technologies; our dependence on significant customers and specific industries; and our dependence on channel partners. Please also refer to Sun's periodic reports that are filed with the Securities and Exchange Commission, including Sun's annual report on Form 10-K for the fiscal year ended June 30, 2006 and its quarterly reports on Form 10-Q for the fiscal quarters ended October 1, 2006 and December 31, Sun assumes no obligation to, and currently does not intend to, update these forward-looking statements.

3 John Fowler Chiaki Ito Executive Vice President Corporate Senior Executive Vice President Sun Microsystems, Inc. Fujitsu, Ltd

4 NEW! SPARC Enterprise Servers TM New Family of Servers > Jointly Developed and Manufactured Midrange and High-End Systems > Available from Sun, Fujitsu and Fujitsu Siemens Mainframe-heritage reliability to the open systems market Fastest SPARC/Solaris Servers ever Solves the most complex computing problems The Ultimate Consolidation Platform

5 Sun System Strategy 20+ Years of Market Leadership and Counting Open Innovate at all levels of the system Partner with market leaders Integrate software, storage, services, and systems Change the economic equation Design for eco-efficiency

6 Fujitsu Engagements for Solaris Market Core Product in Fujitsu Global Development and Fujitsu TRIOLE Realization Leverage our mission-critical design expertise in development of SPARC/Solaris platforms Strong relationship with Sun Target new market opportunities

7 Sun and Fujitsu Two Decades of Collaboration Fujitsu MB86903 chip Fujitsu MB86904 MicroSPARC IIep used in SPARCstation ( MicroSPARC II ) chip; Sun and 2/ELC/IPX; Sun and chip used in Fujitsu announce Fujitsu sign license for SPARCstation 5 PicoJava license Sun OS/4.1/SPARC, agreement x11, NFS Fujitsu MB86900 ( Sunrise ) chip 1st SPARC, basis of Sun-4 system Sun and Fujitsu collaborate on the development and delivery of a new generation of SPARC systems 1988 Fujitsu starts to sell Sun system 1989 Fujitsu MB86901 chip used in SPARCstation 1/SLC/IPC; SPARC International founded by Sun, Fujitsu, others Sun and Fujitsu sign Solaris license and distribution agreement Fujitsu signs UPA License Sun and Fujitsu sign Interface CrossLicense Agreement (covers SPARC V9 ISA); Sun and Fujitsu sign the SPARC Joint Development Agreement 2005 Sun starts to sell PRIMEPOWER SPARC Enterprise

8 Leveraging Sun and Fujitsu Strengths SPARC Enterprise Servers Optimized Virtualization, Scalability and High Availability Breakthrough Innovation and Best Enterprise OS Meets... Mainframe-Heritage Reliability

9 Introducing SPARC Enterprise Servers High-End Systems: M8000 & M9000 Midrange Systems: M4000 & M5000 Entry Systems: T1000 & T2000 UltraSPARC T1 SPARC64 VI

10 Introducing SPARC Enterprise Servers High-End Systems: M8000 & M9000 Midrange Systems: M4000 & M5000 Entry Systems: T1000 & T2000 UltraSPARC T1 SPARC64 VI

11 Solaris 10: The Open OS for SPARC Enterprise Servers 7 Million+ Registered Licenses Free and Open Source OS Optimized for Virtualization Dynamic Reconfiguration Fault Isolation Built-in Predictive Self-Healing Dynamic Tracing (DTrace) Multi-level Security ZFS Binary Compatibility Guaranteed by Sun

12 SPARC Enterprise T1000 & T2000 High Throughput, Eco-efficient Re-branded T1000 and T2000 servers World record performance Highest performance per watt Up to 32 Logical Domains (LDOM s) Roadmap to Niagara 2 based systems T1000 T2000

13 SPARC Enterprise Mx000 Family Jointly Developed, Jointly Manufactured Systems Improve availability > Advanced RAS features Increase capacity > Balanced scalability, common architecture Maximize system utilization > Unmatched partitioning technologies Protect software investments > Solaris binary compatibility guaranteed by Sun Ultimate Consolidation Platform

14 Mainframe-Heritage Reliability for the Open Systems Market Excellent processor availability Only > Instruction retry Only > Data protection of processing units and registers Memory is secure > Extended ECC memory NEW > Mirrored memory Predictive self-healing Hardware and software fault isolation capabilities Fully redundant hardware and dual grid power option Online serviceability hot-swap CPU, memory and more

15 Business-Critical Availability SPARC Enterprise M9000 IBM p5+ p595 HP Superdome Hardware Partitions Yes No Yes Online Service Yes No No $$ Saved from Online Service $50,000/hour N/A N/A Full Hardware Redundancy Yes No No Memory Mirroring Yes No No

16 Fastest SPARC Servers Ever Solves the Most Complex Computing Problems Proven Solaris scalability Systems scale from 2 64 sockets (4 128 cores) > > > > Dual-core, dual-thread SPARC64 VI processor 2.15GHz to 2.4GHz 4 floating point operations per core Roadmap to quad-core, dual-thread SPARC64 VII processor 16GB to 2TB of DDRII memory 5 to 288 PCI-X and PCI-E I/O slots

17 World Record for SAP Best in Class SAP-SD Two-Tier Performance Fastest SPARC Servers Beats 16-way IBM p-570 by 32% Beats 16-way HP Integrity Superdome by 30% SPARC Enterprise M8000 Servers

18 SPARC Enterprise Server Virtualization Hard Partitions App A App B App C Applicatio n Environmen Env A Env B Env C t Operating OS A OS B OS C System HW A HW B HW C Hardware Dynamic Domains Free & Open Virtual Machines Logical Domains OS Virtualization Solaris Containers App A App B App C Applicatio n Environmen Env A Env B Env C t OS A OS B OS C Operating Hypervisor System App A App B App C Applicatio n Environmen Env A Env B Env C t Operating System Hardware Hardware Free & Open Free & Open Resource Management Solaris App A App B App C Resource Manager (SRM) Hardware Applicatio n Environmen t Operating System Free & Open

19 Delivers Maximum Utilization vs. IBM vs. SPARC Enterprise M9000 IBM p5+ p595 Hardware Partitions 24 None Hardware Partition Overhead 0% NA OS Virtualization OS Virtualization Overhead/4 Partitions 1 2% 25%

20 Addressing Today s Infrastructure Requirements Back Office Consolidation HPC Floating Point Performance Large Shared Memory High Scalability High Scalability High Availability High Utilization Investment Protection Security Virtualization Internet Infrastructure High Throughput Low Cost Low Power Consumption High Utilization Security

21 Ideal for... Financial Services Manufacturing Communications

22 SPARC Enterprise Servers The Ultimate Consolidation Platform

23

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