Sun Enters Digital Content Rights, Delivery Markets by Acquiring Pixo

6/27/2003 - Sun Microsystems, Inc. (NASDAQ: SUNW) announced that Sun has entered into a definitive agreement to acquire Pixo Inc., a privately-held company based in San Jose, California. Pixo provides network operators with Java technology-based server software to manage the secure distribution and monetization of digital content for end users' mobile devices. This acquisition will solidify Sun's leadership in mobile data services and create a presence for Sun in the arena of digital rights and access management for content distribution.

Pursuant to the terms of the agreement, Sun will acquire Pixo in an all cash transaction. The acquisition is expected to close in the first quarter of Sun's 2004 fiscal year, which begins July 1, 2003. This acquisition is subject to customary closing conditions. Following completion of the acquisition, Pixo will become an integral part of Sun's Software organization under the leadership of Jonathan Schwartz, executive vice president, Software.

"The adoption of Java technology and the Java Card Subscriber Identity Module (SIM) standard are unleashing revenue opportunities on a sea of new and emerging devices," said Schwartz. "From mobile phones to home audio equipment, set-top boxes to desktop personal computers, Java and Java Card technologies bring authentication, and new service delivery possibilities wherever they go. The acquisition of Pixo accelerates that opportunity for Sun, for the operators of those services, the users of those devices, and the providers of all forms of digital content - from music and videos, to games and enterprise applications. Pixo provides a critical link integrating the evolution of Java 2 Platform, Micro Edition, with the pervasive adoption of Sun's Solaris Operating Environment and Java 2 Platform, Enterprise Edition."

Pixo's server software enables network operators and enterprises to centrally manage content, customize multiple subscriber interfaces and allow rapid downloads of secure digital content, including Java applications. It will also provide a consolidated platform to add, manage, market, download and bill for all types of wireless content regardless of where that content is physically located. Pixo enables network operators to automate this process, which can lower costs, decrease time to market and enable them to focus on deriving new revenue streams from deploying new downloadable services.

The Pixo product can simplify deployment of new services for both network operators and enterprises. It will be offered in conjunction with Sun's recently announced mobility programs, which includes the Sun Developer Network Mobility Program, Business Mobility Initiative and Unified Testing Initiative for Wireless Java Applications.

Usability is critical for end-users and the Pixo technology benefits end-users by delivering content that is relevant to them and available for their mobile device. For example, network operators will be able to know what type of game to recommend to an end-user based on previous downloads or notify them of the availability of a new "level" of a previously downloaded game. End-users will also benefit from an easier way to make secure payment transactions.

In the future, Pixo will become part of the Project Orion platform, which converges Sun's software offerings into a predictable, scheduled quarterly release of an integrated software system distributed on Solaris Operating System, Solaris x86 Platform Edition and Linux. By deploying Project Orion, customers will also benefit from an overall lower cost of acquisition and speed up time to deployment.

About Sun Microsystems, Inc.
Since its inception in 1982, a singular vision -- "The Network Is The Computer" -- has propelled Sun Microsystems, Inc. (Nasdaq: SUNW) to its position as a leading provider of industrial-strength hardware, software and services that make the Net work. Sun can be found in more than 100 countries and on the World Wide Web at

Solaris, Java Card and Java are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries.

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