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Sun Accounces Agreement to Acquire MySQL Open Source Database

Sun Microsystems Announces Agreement to Acquire MySQL, Developer of the
World’s Most Popular Open Source Database

Sun Growth Strategy Accelerates With New Position in $15 Billion Database
Market

SANTA CLARA, CA January 16, 2008 Sun Microsystems, Inc. (NASDAQ: JAVA)
today announced it has entered into a definitive agreement to acquire MySQL
AB, an open source icon and developer of one of the world’s fastest growing
open source databases for approximately $1 billion in total consideration.
The acquisition accelerates Sun’s position in enterprise IT to now include
the $15 billion database market. Today’s announcement reaffirms Sun’s
position as the leading provider of platforms for the Web economy and its
role as the largest commercial open source contributor.

With millions of global deployments including Facebook, Google, Nokia,
Baidu and China Mobile, MySQL will bring synergies to Sun that will change
the landscape of the software industry by driving new adoption of MySQL’s
open source database in more traditional applications and enterprises. The
integration with Sun will greatly extend the commercial appeal of MySQL’s
offerings and improve its value proposition with the addition of Sun’s
global services organization. MySQL will also gain new distribution through
Sun’s channels including its OEM relationships with Intel, IBM and Dell.

“Today’s acquisition reaffirms Sun’s position at the center of the global
Web economy. Supporting our overall growth plan, acquiring MySQL amplifies
our investments in the technologies demanded by those driving extreme
growth and efficiency, from Internet media titans to the world’s largest
traditional enterprises,” said Jonathan Schwartz, CEO and president, Sun
Microsystems. “MySQL’s employees and culture, along with its near ubiquity
across the Web, make it an ideal fit with Sun’s open approach to network
innovation. And most importantly, this announcement boosts our investments
into the communities at the heart of innovation on the Internet and of
enterprises that rely on technology as a competitive weapon.”

MySQL’s open source database is widely deployed across all major operating
systems, hardware vendors, geographies, industries and application types.
The complementary product line-ups will extend MySQL’s database reach and
are expected to bring new markets for Sun’s systems, virtualization,
middleware and storage platforms.

“The combination of MySQL and Sun represents an enormous opportunity for
users and organizations of all sizes seeking innovation, growth and
choice,” said Marten Mickos, CEO, MySQL. “Sun’s culture and business model
complements MySQL’s own by sharing the same ideals that we have had since
our foundation — software freedom, online innovation and community and
partner participation. We are tremendously excited to work with Sun and the
millions of members of the MySQL open source ecosystem to continue to
deliver the best database for powering the modern Web economy.”

MySQL’s open source database is the “M” in LAMP – the software platform
comprised of Linux, Apache, MySQL and PHP/Perl often viewed as the
foundation of the Internet. Sun is committed to enhancing and optimizing
the LAMP stack on GNU/Linux and Microsoft Windows along with OpenSolaris
and MAC OS X. The database from MySQL, OpenSolaris and GlassFish, together
with Sun’s Java platform and NetBeans communities, will create a powerful
Web application platform across a wide range of customers shifting their
applications to the Web.

More than 100 million copies of MySQL’s high-performance open source
database software have been downloaded and distributed and an additional
50,000 copies are downloaded daily. This broad penetration coupled with
MySQL’s strength in Web 2.0, Software as a Service (SaaS), enterprise,
telecom and the OEM embedded market make it an important fit for Sun. With
MySQL, Sun will have the ability to deepen its existing customer
relationships and create new opportunities with companies seeking the
flexibility and ease-of-use of open source systems.

Following completion of the proposed transaction, MySQL will be integrated
into Sun’s Software, Sales and Service organizations and the company’s CEO,
Marten Mickos, will be joining Sun’s senior executive leadership team. In
the interim, a joint team with representatives from both companies will
develop integration plans that build upon the technical, product and
cultural synergies and the best business and product development practices
of both companies. MySQL is headquartered in Cupertino, CA and Uppsala,
Sweden and has 400 employees in 25 countries.

As part of the transaction, Sun will pay approximately $800 million in cash
in exchange for all MySQL stock and assume approximately $200 million in
options. The transaction is expected to close in late Q3 or early Q4 of
Sun’s fiscal 2008. Completion of the transaction is subject to regulatory
approval and other customary closing conditions. The deal is expected to be
accretive to FY10 operating income on a GAAP basis.

The management teams of both companies will host a media and analyst
conference call today at 10:00 am EST, 7:00 am PST. The call can be
accessed at (http://www.sun.com/investors). For those unable to listen to
the live conference call, a telephone replay will be available for one week
following the call by dialing (888) 566-0103 or outside of the U.S. by
dialing (402) 998-0958. No passcode is required to access the replay.

About MySQL

MySQL AB develops and supports a family of high-performance, affordable
database products. The company’s flagship offering is ‘MySQL Enterprise’, a
comprehensive set of production-tested software, proactive monitoring
tools, and premium support services. MySQL is the world’s most popular open
source database software. Many of the world’s largest and fastest-growing
organizations use MySQL to save time and money powering their high-volume
Web sites, business-critical systems and packaged software — including
industry leaders such as Yahoo!, Alcatel-Lucent, Google, Nokia, YouTube and
Booking.com. With headquarters in the United States and Sweden — and
operations around the world — MySQL AB supports both open source values
and corporate customers’ needs. For more information about MySQL, please
visit www.mysql.com.

About Sun Microsystems, Inc.

Sun Microsystems develops the technologies that power the global
marketplace. Guided by a singular vision — “The Network is the Computer”
— Sun drives network participation through shared innovation, community
development and open source leadership. Sun can be found in more than 100
countries and on the Web at http://sun.com

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