Apple Announces Licensing Strategies and Alliances For Newton Technology

HANNOVER, Germany--March 25, 1993 -- Apple Computer, Inc. today made a
number of announcements underlining its commitment to make its Newton
technology a pervasive standard available to the computer, consumer and
telecommunications industries. Apple aims to license key technologies to
companies who can manufacture and market a variety of exciting new product
based on Newton technology--to a broad range of customers. Newton is a
family of personal digital assistant (PDA) products and technologies from
Apple Computer due to be launched later this year. Newton technologies
have been designed in such a way that key elements and components can be
licensed to third parties. Several companies have announced their
commitment and support for Newton technologies. Among them are:

* Sharp Corporation 

Sharp Corporation, Apple's strategic ally in the development and
manufacture of Newton, has recently announced that it is to be a licensee
of the ARM chip which will be at the heart of the Newton family. Sharp
joins two other ARM licensees, VLSI and GEC-Plessey.

* Motorola 

Motorola has announced an agreement with Apple Computer, Inc. to license
Apple's Newton technology in order to manufacture and market a handheld
device featuring integrated, wireless communications capabilities based on
the Newton operating system.

* Siemens Private Communications Systems Group and ROLM

Apple and Siemens announced their plans to collaborate on the development
of NotePhone , a combination of Siemens-ROLM telephony and Newton
technology which will provide access to telephone and fax features.

* Cirrus Logic 

Cirrus Logic has announced their support of Newton technology by developing
and supplying Newton-compatible chipsets for use by licensees of the
Newton operating system and by Apple itself in its planned Newton
products.

* Kyushu Matsushita Electric 

Kyushu Matsushita Electric (KME) announced an agreement to license the
Newton operating system from Apple for use in future products. Apple and
KME also intend to explore the opportunity to include KME-provided
technology in future Newton family products.

* LSI Logic 

LSI Logic is manufacturing an Application-Specific Integrated Circuit
(ASIC) chip for Newton PDA's. The ASIC provides the interface between the
microprocessor, the memory and the user interface. The device is
cell-based, full custom and uses 1-micron process technology.

Announcing the agreements, Gaston Bastiaens, vice president and general
manager, Personal Interactive Electronics division at Apple, said, "Today
we are setting the stage to create a worldwide standard for personal
digital assistants available to the entire industry. This will allow the
computer, consumer electronics and telecommunications industries to come
together to provide a rich, integrated platform for the development
community--and ultimately for all of their customers. We are very pleased
with our progress so far, and look forward to joining with others in
creating exciting new products based around Newton technologies."
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Licensing Newton

"... as different industries converge and as these technologies come
together, no single company will be able to control all that is needed to
meet customer demand. This means that alliances will become increasingly
important in the coming years" 
--- John Sculley, Shareholders' Meeting, January 1993.

Apple's Newton Licensing Strategy -- Summary

1. We have developed a portfolio of licensable products, based 
   on Newton technology. 
2. We are committed to broadly licensing these products in order
   to create a standard. 
3. We plan to retain control of the Newton architecture to
   maintain consistent user experience.

Companies working with Apple on Newton 

Sharp Corporation 
Siemens AG & ROLM 
Motorola, Inc. 
Cirrus Logic 
Kyushu Matsushita Electric

ARM Semiconductor Partners:
* GEC Plessey Semiconductors
* Sharp Corporation 
* VLSI Technology

Apple Computer, Inc. has shown that it can create 'hit products'. The
Macintosh Classic, LC and PowerBook have each been both critically and
popularly acclaimed. Apple believes that Newton technology will be another
success. At the Consumer Electronics Show in 1992 Apple Chairman John
Sculley coined the term Personal Digital Assistant, and indicated that
Apple would have an offering in this brand new category. As we expected,
many other companies soon afterwards announced that they had UPDA's" under
development. Apple however had laid the ground and created the demand. We
now have a licensing strategy which is designed to manage the complex
business relationships that are required in order to bring this nascent
industry to the market.

Apple's Personal Interactive Electronics (PIE) Division has announced that
it will license its Newton technology--what does this mean?

As we have developed Newton technologies we have discovered ever-
increasing ways in which customers would like to use these technologies.
We believe that these core Newton technologies stand at the crossroads of
the computer, consumer and communications industries, offering customers
completely new ways of working and opportunities to re-engineer the ways
that they work, learn and play.

As industries and competing businesses converge, we see vibrant new
interdependencies being created which demand that major industry players
become co-operators in these new emerging businesses. This is new ground
for many companies, including Apple. The strength of Newton technologies
is such that we intend to come to the market accepted as the PDA standard.
As we have shown our Newton technology to potential partners, customers
and developers they have seen the potential that it brings to their
products and businesses. Often other businesses have seen Newton
technologies as a possible catalyst to bring to life many of the ideas and
plans that they are holding for their own future products.

We intend to reach out to a broad range of licensees. With these licensees
we hope to make Newton an industry standard by delivering compatibility
and unique performance capabilities to a broad range of customers. By
adding additional licensees who bring valuable knowledge, skills and
technology to the Newton platform we think we are better able to meet
customers needs as industries converge and whole new classes of products
come to market.

Already several major corporations have indicated agreement to work with
Apple on Newton technology. Our key partner in the development of Newton
is Sharp Corporation . Other recently announcements included Siemens AG,
Motorola, Cirrus Logic, and Kyushu Matsushita Electric. The ARM chip, at
the heart of Newton, has been licensed to GEC-Plessey, VLSI and Sharp
Corporation.

We believe that we have developed a world-leading set of technologies in
Newton. We expect market acceptance for not only Apple's implementation
but also those of our licensees to be extremely high. This should give
customers a wide variety of choices, in a wide variety of locations--with
the promise of the quality and innovation signified by the Newton logo on
the product. This large market will also lead to a wide range of
applications, delivered in many different ways--online, off-the-shelf,
through the mail, etc. Apple's online services are planned to be available
to Newton-licensed products, providing such things as news, weather,
sport, travel planning, financial services, mail and so on.

We have developed a portfolio of licensable products and have created a
package which allows corporations to make use of years of quality Apple
research and development in order to quickly bring innovative products to
market. The anticipated compatibility between licensee and Apple products
should allow each participant's offerings to take advantage of a full
range of software and accessories which will be developed by a whole
community of developers including Apple, its licensees and other third
parties. Apple also plans to create a comprehensive online business that
offers a compelling range of services to owners of licensees' products.

We intend to have a broadly accepted standard, and to work with our
licensees to bring exciting innovative products to the market. In order to
maintain the standard and grow the business for the benefits of
developers, licensees and customers we plan to maintain control of the
Newton architecture. We see this as essential to meet the needs of--and
justify the investment of--our licensees. Apple will encourage the
development of innovative products: one of the benefits of Newton
technology is its flexibility, and we want to encourage licensees to take
advantage of that in their products.

We want to create a broad, vigorous base of licensees. We are developing
industry leading technology and we intend to support licensees worldwide
who want to take advantage of that by bringing to their customers
exciting, imaginative products.

Apple Computer Inc, 20525 Mariana Ave, Cupertino, CA 95014
408-996-1010

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