[MD1] Apple Acquires NeXT Software
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[MD1] Apple Acquires NeXT Software

Apple Computer, Inc. Agrees to Acquire
NeXT Software Inc.

CUPERTINO, Calif.--Dec. 20, 1996--Apple Computer, Inc. today announced
its intention to purchase NeXT Software Inc., in a friendly acquisition for
$400
million. Pending regulatory approvals, all NeXT products, services, and
technology research will become part of Apple Computer, Inc. As part of the
agreement, Steve Jobs, Chairman and CEO of NeXT Software, will return to
Apple--the company he co-founded in 1976--reporting to Dr. Gilbert F. Amelio,
Apple's Chairman and CEO.

The acquisition will bring together Apple's and NeXT's innovative and
complementary technology portfolios and significantly strengthens Apple's
position as a company advancing industry standards. Apple's leadership in
ease-of-use and multimedia solutions will be married to NeXT's strengths in
development software and operating environments for both the enterprise and
Internet markets. NeXT's object oriented software development products will
contribute to Apple's goal of creating a differentiated and profitable software
business, with a wide range of products for enterprise, business,
education, and
home markets.

Using NeXT technology to embrace open industry standards Apple Computer,
Inc. believes the acquisition will allow the Company to further develop
industry
alliances as the Internet/intranet market evolves. Apple anticipates that
NeXT's
expertise in next-generation operating system design will allow elements of the
NEXTSTEP operating system to become integral features of Mac OS--providing
developers a compelling OS foundation on which to build next generation
software solutions.

"The acquisition of NeXT is the start of a new chapter in Apple's history and
represents a milestone in our transformation as a corporation," said Dr.
Gilbert
F. Amelio, Chairman and CEO, Apple Computer Inc. "Today Apple welcomed
back its most talented visionary" Steve Jobs, someone who can inspire a new
generation of customers and software developers and show that Apple remains
the industry home for innovation and excitement. Today Apple returns, as an
open player to the mainstream and the heart of this industry, where our
technology can once more set standards for innovation and excellence.

"Much of the industry has lived off the Macintosh for over ten years now,
slowly copying the Mac's revolutionary user interface," said Steven P. Jobs.
"Now the time has come for new innovation, and where better than Apple for
this to spring from? Who else has consistently led this industry--first
with the
Apple II, then the Macintosh and LaserWriter? With this merger, the advanced
software from NeXT will be married with Apple's very high-volume hardware
platforms and marketing channels to create another breakthrough, leapfrogging
existing platforms, and fueling Apple and the industry copy cats for the
next ten
years and beyond. I still have very deep feelings for Apple, and it gives
me great
joy to play a role in architecting Apple's future."

Acquisition Confirms New Open Apple

The acquisition of NeXT is further evidence that Apple is fundamentally
changing the way it does business. Embracing outside technology and driving
cross-platform industry standards, Apple believes it can innovate in the key
areas that give its products and technology differentiation. NeXT's
cross-platform development environments for enterprise and Internet/intranet
markets, allow developers to write once and deploy across a range of Internet
and client-server platforms.

In a new era of industry collaboration and joint initiatives--brought on by the
"megatrends" of pervasive Internet and ubiquitous multimedia--NeXT
technology complements Apple's strength in multimedia authoring and
playback, as well as Internet access, Internet authoring, and Internet server
solutions.

In the last year Apple has worked on a series of collaboration initiatives
which
leverage the Company's core strengths in Internet, multimedia, and component
software. Wide ranging agreements with Netscape Communications, Sun
Microsystems, and Silicon Graphics Computer Systems--along with the
acquisition of NeXT--confirm Apple is building strategic relationships at the
forefront of the information industry.

Developer Support

Software developers believe that the integration of NEXTSTEP technology in
future versions of Mac OS will result in a robust, next-generation OS that
provides developers with a multimedia-rich and Internet-savvy platform.

"This partnership is the best possible fit. Both companies support strong, open
industry standards. Combined with their rich media focus and a command of the
Internet, these strengths will play well into Adobe's core markets", says John
Warnock, Chairman and CEO, Adobe Systems, Inc. "NeXT's advanced
operating system design, when combined with Apple's leadership in ease-of-use
and multimedia, will provide Adobe and other developers with a robust,
compelling platform on which to build great next-generation software
solutions."

Apple expects to be able to show substantial developer and industry
endorsements for Apple's new Mac OS system software strategy at MacWorld
San Francisco in January 1997.

Apple Computer, Inc. believes the acquisition will provide a series of benefits
for customers, software developers, Apple Computer, NeXT, and the
information technology industry. They include the following:

Enterprise Offering Enhanced

The combination of Apple technology, NeXT object oriented software
development products, and the "megatrend" of corporate-wide intranets, gives
Apple the opportunity to reinvigorate its offering to enterprise markets.

NeXT's OPENSTEP Enterprise and WebObjects development environments
allow enterprise customers to develop software solutions quickly and deploy
reusable applications on either traditional client-server or
Internet/intranet based
networks. These powerful tools allow new applications to access legacy data
and applications, a key concern for enterprise customers in the late 1990s.
Customers currently using this technology range from companies such as
WebCrawler, Trilobyte and ID to large organizations including Fannie Mae,
Merrill Lynch, NASA, NTT, and AT&T Wireless.

In addition, NeXT's Sales and Professional Services team offers worldwide
programs to facilitate the knowledge transfer required to quickly take
advantage
of OPENSTEP Enterprise's unique capabilities. Apple envisages this team will
become a valued part of the Apple enterprise offering moving forward.

Internet/intranet Position Strengthened

A key strategic advantage of NeXT technology is its powerful Internet/intranet
software development environment--WebObjects.

Today, Apple technology and customers are playing a pivotal role in the
evolution of the Internet--from easy to use powerful solutions in Internet
access,
Internet authoring and Internet servers, to technologies such as QuickTime
Media Layer (QTML) and HotSauce/MCF that set new standards in Internet
multimedia and knowledge management. Combining these Apple strengths with
WebObjects' unique capabilities to access legacy data and applications will
provide Apple with a strong offering for companies reengineering their
businesses to take advantage of the Internet. Customers currently using
WebObjects technology include The Sharper Image, Ford, Nissan, Lufthansa,
and Bell South.

Again, Apple foresees NeXT's Sales and Professional Services team continuing
to offer programs to companies who are implementing corporate-wide business
reengineering based upon a new Internet/intranet infrastructure.

In addition, the momentum of Java, Sun Microsystems' platform-independent
programming language, has led Apple to conclude that by implementing a Java
architecture across its platforms and development tools portfolio, Apple
systems
will be at the forefront of Internet/Internet design--an area of enormous
potential
growth through the millennium.

WebObjects' Java-enabled object oriented model complements Apple
Computer's commitment to Java, which includes Mac OS Runtime for Java
(currently in beta) and the integration of JavaBeans and OpenDoc component
technology. Apple Computer, Inc. believes the acquisition of NeXT will give
the Company the opportunity to become a preeminent development and
deployment platform for Java technology.

Acquisition Kick-Starts Apple Software Business

The acquisition of NeXT's development products for enterprise and Internet
markets will allow Apple to supplement its growing list of software products
with a ready-made portfolio of powerful customer-focused software solutions.
Apple is committed to increasing the revenue it makes from its software
products and the acquisition of NeXT is a significant development in building a
differentiated, sustainable and profitable software business. Apple already
has a
number of software products--from QuickTime to HotSauce/MCF, which are
driving industry standards in multimedia and Internet markets--to customer
applications and tools such as Apple Internet Connection Kit (AICK), Apple
Media Tool, Language Kits, and communications software.

Delivery of Next Generation Mac OS

Apple's exhaustive research in operating system design, led the company to
conclude that NEXTSTEP's maturity, networking, customer and developer
acceptance, multi-tasking, protected memory, and scalability from portable to
server-level products make it the clear choice for integration into the
next major
revision of Mac OS. Apple believes that the integration of NEXTSTEP
technology in future versions of Mac OS will result in a robust, next
generation
OS that provides customers and developers with a multimedia-rich and
Internet-savvy platform.

Apple Chairman and CEO Dr. Gilbert F. Amelio, Chief Technology Officer
Ellen Hancock, and Steve Jobs will announce details of how Apple will
incorporate NeXT technology into future releases of Mac OS at MacWorld San
Francisco in January.

Acquisition Brings New Talent to Apple

The acquisition of NeXT will result in new management talent joining Apple
Computer, Inc. Avie Tevanian, formally NeXT's Vice President of
Engineering, will join Apple to lead the Company's next generation OS
development efforts, reporting to Ellen Hancock, Apple's executive vice
president of R&D, and Chief Technology Officer. Mitch Mandich, formally
NeXT's vice president of Worldwide Sales and Services, will also join Apple,
reporting to Marco Landi, Apple's executive vice president and Chief Operating
Officer. Dominique Trempont, NeXT's Chief Financial Officer will also be
joining Apple's executive team. As a complement to this initiative, Apple
Computer, Inc. also announces that Rick LeFaivre has returned to the company
as head of the newly formed Apple Technology Group. This group will house
Apple's research laboratories, human interface technologies, and advanced
systems architecture, offering support for hardware and software integration.
Rick LeFaivre will report to Ellen Hancock in this new role. (See separate
press
release).

Apple Computer, Inc., a recognized innovator in the information industry and
leader in multimedia technologies, creates powerful solutions based on
easy-to-use personal computers, servers, peripherals, software, personal
digital
assistants and Internet content. Headquartered in Cupertino, California, Apple
develops, manufactures, licenses and markets solutions, products, technologies
and services for business, education, consumer, entertainment, scientific and
engineering and government customers in more than 140 countries.

Katie Cotton
Apple Computer, Inc.
(408) 974-7269
email: katiec@apple.com

Russell Brady
Apple Computer, Inc.
(415) 493-0244
email: brady2@apple.com

Nicole Overson
NeXT Software Inc.
(415) 780-3731
email: nicole@next.com

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Apple's home page on the World Wide Web: http://www.apple.com/

Apple, the Apple logo, and Macintosh, are registered trademarks of Apple
Computer, Inc. Additional company and product names may be trademarks or
registered trademarks of the individual companies and are respectfully
acknowledged.

 

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