Apple's New Structure Brings Sharp Focus on Key Businesses

Apple Computer, Inc. today implemented a streamlined organizational
structure that consolidates the Company's product development, marketing,
sales, support, and operations efforts into groups sharply focused on
Apple's strategy. With this organization, Apple is focusing research and
development on products that are central to its key businesses, sales teams
to its market strengths. It is also integrating Apple's and NeXT's
development resources, to execute its OS strategy.

"We are reshaping our product development, sales, and marketing efforts
into simpler, leaner teams that can quickly bring exceptional products to
market--and then aggressively market them to customers in our key markets"
said Dr. Gilbert Amelio, Apple's Chairman and CEO. "The organization and
team we're announcing today represent the right people, in the right
places, to bring Apple back to its basics and return us to profitability by
the end of the fiscal year."

The new structure includes the following key elements and executives:

Technology Office
Led by Ellen Hancock, this group includes Reliability and Quality, the
Chief Scientist, the Apple Fellows, and the Advanced Technology Group.

Research and Development
The Company consolidates its multiple product development organizations
into two basics groups: The System Software Engineering team will be led by
Avie Tevanian, coming from NeXT. The Hardware Engineering team will be led
by Jon Rubinstein, most recently COO of FirePower Systems, Inc.

Marketing
With today's move, Apple, for the first time, brings all its marketing
functions into a single organization. Guerrino De Luca, previously head of
Apple's Claris subsidiary, leads the Company's new global marketing group,
with responsibility for all Product Marketing, Developer Relations,
Licensing, Marketing Communication, Advertising, and Events activities. The
NeXT marketing functions will also report to this marketing organization.

Worldwide Sales and Support
The Company's new Worldwide Sales and Support Organization, led by Marco
Landi, will sell and bring service and support to customers in the
education, business, publishing, and consumer markets. Claris, now led by
Dominique Goupil, most recently senior vice president of Claris Sales and
Marketing, will report into this organization. The Claris charter and
strategy remain unchanged. The NeXT sales force and professional services
under Mitch Mandich, will also report into the Worldwide Sales and Support
Organization.

Finance and Administration
Led by Fred Anderson, this group comprises Finance, Corporate Development,
Information Systems, Investor Relations, and Facilities.

Operations
Led by George Scalise, this group includes Human Resources, Legal,
Worldwide Manufacturing and Procurement, Government Relations, and Imaging.

All these functions and the executives who will lead them will report to
Dr. Gilbert Amelio, Apple's CEO and Chairman, and form the Executive
Committee. In addition, the two co-founders of the Company, Steve Jobs and
Steve Wozniak, will have an advisory role to Dr. Amelio, and as such,
participate into the Executive Committee.

Additionally, the organization will define and manage Apple's upcoming
restructuring, which will include elimination of programs and positions.
The implementation of the restructuring will begin in early March.