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

            "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

            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. 

            For Apple Computer, Inc.:
            Katie Cotton
            Apple Computer, Inc.
            (408) 974-7269

            For the Newton subsidiary:
            Zoe Arden
            Access Communications
            (415) 904-7070 ext. 287

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            and eMate is a trademark of Apple Computer, Inc. Additional company and product
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