[MD1] Apple Finalizes NeXT Acq.
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[MD1] Apple Finalizes NeXT Acq.

Apple Computer, Inc. Finalizes Acquisition of NeXT Software Inc.

Company Moves Forward with Operating System Strategy Incorporating NeXT
Technology

CUPERTINO, Calif.--Feb. 7, 1997--Apple Computer, Inc. today announced it
has completed its acquisition of NeXT Software, Inc., after securing all
necessary regulatory approvals. Apple announced on Dec. 20, 1996 its
intention to purchase NeXT in a friendly acquisition for approximately
$400 million. Steve Jobs, Chairman and CEO of NeXT Software, will serve
as an advisor to Dr. Gilbert F. Amelio, Apple's Chairman and CEO.

"The finalization of our acquisition of NeXT confirms our commitment to
providing our customers and software developers with a solid OS
strategy," said Dr. Gilbert F. Amelio, Chairman and CEO, Apple Computer
Inc. "We embark upon Apple's third decade with renewed enthusiasm, and we
look forward to working with our developers, customers, and industry
colleagues to proliferate Apple's legacy of vision and technological
excellence."

The acquisition brings together Apple's and NeXT's innovative and
complementary technology portfolios including Apple's leadership in
ease-of-use and multimedia solutions and NeXT's strengths in development
software and operating environments for both the enterprise and Internet
markets. The combination significantly strengthens Apple's position as a
company advancing industry standards.

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.

Earlier this year, Apple announced the company's operating system
strategy, which incorporates NeXT technology. The Mac OS will continue to
be upgraded in regular biannual releases, while NeXT technology will form
the basis for Apple's next-generation OS, Rhapsody. Apple believes that
the advanced technical underpinnings and rapid development environment of
Rhapsody will allow developers to create new applications that leapfrog
those of other 'modern' operating systems, such as Windows NT.

The first release of Rhapsody is expected to be launched to developers in
mid to late 1997 and to customers within 12 months. A unified Rhapsody
release is expected to be in the hands of customers by mid-1998. This
will include compatibility with existing Mac OS applications, as well as
provide a platform for next-generation computing.

The acquisition of NeXT is further evidence that Apple is fundamentally
changing the way it does business. Apple believes that by embracing
outside technology and driving cross-platform industry standards, 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.

Except for the historical information contained herein, the statements
regarding effecting innovation, introducing new products, continuing
focus on certain industry growth areas and are forward-looking
statements that involve risks and uncertainties. Potential risks and
uncertainties include, without limitation, continued competitive
pressures in the marketplace; the effect competitive factors and the
Company's reaction to them may have on consumer and business buying
decisions with respect to the Company's products; the Company's ability
to deliver successful innovative products to the marketplace; the
Company's ability to deliver new products to the marketplace on a timely
basis; the effect of the announced business restructuring on the future
performance of the Company, especially the performance of the Company's
employees; and the need for any future restructuring. More information on
potential factors that could affect the Company's financial results are
included in the Company's Form 10-Q for the first quarter of the 1997
fiscal year, to be filed with the SEC.

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.

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

Susan Lehman
Apple Computer, Inc.
(408) 974-0182
email: lehman@apple.com

-30-

Apple, the Apple logo, Macintosh, Performa, Power Macintosh, and
PowerBook 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.

END

 

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