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Sun Welcomes Deregulation of Encryption Exports


PALO ALTO, CA, September 16, 1999 -- Sun Microsystems, Inc. welcomed today's announcement that the Clinton Administration will move to ease export restrictions on encryption technology.

"This is a very positive and much needed step that will help ensure Internet security and privacy," said Sun Chairman and CEO, Scott McNealy. "While it is clear that any legitimate concerns of law enforcement must be carefully considered, we believe this goal can be accomplished without sacrificing America's technological leadership."

McNealy pointed to the fact that foreign software manufacturers are generally free to export more advanced encryption than current U.S. export controls allow -- creating a distinct disadvantage in an extremely competitive market.

"Global competitiveness is essential if the U.S. is to continue reaping the benefits of its high tech leadership. Similarly, domestic competitiveness must also be protected. The new U.S. export policy must be carefully crafted to ensure a level playing field for all U.S. encryption exporters," he stated.

McNealy noted that the Administration's announcement builds on the legislative groundwork initiated in Congress by Representatives Robert Goodlatte (R-VA) and Zoe Lofgren (D-CA). "There is strong recognition within the Administration and Congress that realizing the benefits of e-commerce and a more networked world will require appropriate Internet security. Today's announcement will help achieve that goal."

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 high quality hardware, software and services for establishing enterprise-wide intranets and expanding the power of the Internet. With more than $11.5 billion in annual revenues, Sun can be found in more than 150 countries and on the World Wide Web at http://www.sun.com/.


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