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SANTA CLARA, Calif. - August 18, 2004 - Sun Microsystems, Inc. (Nasdaq: SUNW) today announced one of the largest open standards-based software rollouts in the New South Wales (NSW) government. The NSW Roads and Traffic Authority (RTA) selected Sun Microsystems to supply its new desktop solution based on the Sun Infrastructure Solution for Enterprise Messaging Consolidation and StarOffice Productivity Suite. The Sun Infrastructure Solution for Enterprise Messaging Consolidation includes key components of the Sun Java Enterprise System software and provides three major capabilities: e-mail messaging, calendaring and task management, and real-time collaboration.

As part of the initial contract, Sun will migrate 1,500 users across 120 offices within the RTA's Registry Environment. The next phases of deployment are planned to connect up to 3,000 users to the new system. Future plans also include leveraging the Sun Java System Portal Server, Sun Java System Access Manager, Sun Java System Identity Manager and Sun Java System Directory Server Enterprise Edition software products to support enterprise-wide portal, directory and identity management capabilities. This agreement further demonstrates how Sun's secure, open standards-based collaborative solutions help drive down costs and reduce complexity for government customers.

"The RTA required an open standards-based system for its desktops and back -end infrastructure to cut its escalating software, maintenance and support costs," said Greg Carvouni, chief information officer, RTA. "Sun has addressed our key total cost of ownership (TCO) issue through innovative design and pricing which will reduce TCO by up to 20 percent, leading to potential savings of up to $1.5M USD ($2M AUS) per year. This means we'll be able to dedicate our time and budget to serving our customers rather than worrying about desktop costs and support issues."

"We realize that more and more governments are looking for alternatives because they are frustrated with escalating IT costs and the increased proliferation of viruses and worms, which ultimately affect information security and worker productivity," said Larry Singer, senior vice president, strategic insights officer, Sun Microsystems. "This landmark decision by the Australian government helps them implement an open, secure and cost effective IT infrastructure, and also opens the door for other NSW agencies to consider alternatives from Sun Microsystems."

RTA plans to migrate away from Microsoft applications to the following solutions from Sun Microsystems:

• Sun Java System Messaging Server software, a high performance, secure messaging platform. Extensive security features help ensure the integrity of communications through user authentication, session encryption and content filtering.
  
  
• Sun Java System Calendar Server software, a collaboration tool which enables users to manage and coordinate appointments, events, tasks and resources. Using Sun Java System Calendar Express software and its Web- based interface, end-users can access their personal, public or group calendars anytime, anywhere from any Web-enabled device.
  
  
• StarOffice software, the dominant office productivity suite for Linux and Solaris operating systems. Both StarOffice and its open source counterpart, OpenOffice.org, are emerging as leading alternatives to Microsoft Office on the Windows platform. Consumers and enterprise users are benefiting from StarOffice's ease of use, dramatically lower desktop licensing and maintenance costs, and open XML file format, which allows users to exchange information easily with partners and suppliers.
  
  
• Sun's low-cost x86 and SPARC server offerings including the Sun Fire V 20z, V440 and V240 servers.

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