Apple Announces Newton Subsidiary

New Company to Focus on Computing & Communications For Mobile Users

CUPERTINO, Calif.–May 22, 1997–Apple Computer, Inc. today announced the
formation of a subsidiary that will focus on meeting the computing and
communications needs of today’s corporate mobile users. The new company, to
be named at a later date, will provide customers with market-driven
products and technologies, based on the award-winning Newton operating
system, in conjunction with its licensees, value-added resellers, and
systems integrators.

“Over the past year, we have seen the Newton Systems Group launch
compelling products based on the Newton operating system,” said Dr. Gilbert
F. Amelio, Chairman and CEO of Apple Computer, Inc. “We believe that the
time is right to establish the group as a focused entity. This decision
allows the new subsidiary to pursue its business and create the marketing
and operating strategies it needs to succeed.”

The new company will be led by a CEO to be named and newly appointed Chief
Operating Officer Sandy Benett. Benett was previously vice president of the
Newton Systems Group and has been responsible for managing the group for
the past few years. A search is currently underway to find an experienced
CEO to lead the organization and complement the existing management team.

The new company will focus on developing products as well as licensable
technologies targeted at meeting the needs of mobile users in corporate
markets–initially concentrating on healthcare, sales force automation, and
field service industries. The new company will provide platform
technologies, including the Newton operating system, development tools,
APIs, and documentation to enable the development of products for such

“We have a solid business plan and a strong management team in place to
optimize the value of Newton technology for corporate users and take Newton
technology into a new era,” said Benett.

Products built on the Newton operating system include the MessagePad 2000
handheld computer and the eMate 300 mobile computer for the education

The new company will continue to support, sell, and market the current
MessagePad 2000 in the retail channel. The Company will also build on the
success of prior MessagePad products by continuing to deliver the
MessagePad 2000 and follow-on products to corporate markets. It will be
strengthening the organization to fully support this sector.

The new company will serve the education market through Apple. Apple
Computer, Inc. will continue to support, sell, and market the eMate family
of portable computer products into the education community based on
technology delivered by the new company.

“eMate 300 is part of Apple’s long-term strategy and vision for education
technology, ” said Mike Lorion, vice president of Apple’s Education
Division. “We will continue to aggressively market and support the product.
We are looking forward to working closely with the Newton team on future
versions of the eMate to continue to meet the unique requirements of
educators and students.”

Current Newton licensees include Schlumberger, Sharp, Digital Ocean, and
Harris Corporation. Technology allies include ARM Limited, Digital
Equipment Corporation, Paragraph International, and Cirrus Logic.

Apple expects the transition to be completed by June 30, 1997. The
organization will remain based in Northern California.

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, handheld
computers 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

For Apple Computer, Inc.:
Katie Cotton
Apple Computer, Inc.
(408) 974-7269

For the Newton subsidiary:
Zoe Arden
Access Communications
(415) 904-7070 ext. 287

Apple’s home page on the World Wide Web:

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