How Far From The Tree, Exactly?

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 markets.

"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 market.

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 countries.