Apple Discontinues Development of Newton OS

CUPERTINO, California--Feb. 27, 1998--Apple Computer, Inc. today announced it will discontinue
further development of the Newton operating system and Newton OS-based products, including the
MessagePad 2100 and eMate 300.

"This decision is consistent with our strategy to focus all of our software development resources on
extending the Macintosh operating system," said Steve Jobs, Apple's interim CEO. "To realize our
ambitious plans we must focus all of our efforts in one direction."

Apple is committed to affordable mobile computing, pioneered by the eMate, and will be serving this
market with Mac OS-based products beginning in 1999.

Apple will continue to market and sell its current inventory of MessagePad 2100 and eMate 300
computers, as well as to provide support for their installed base of users. The Company is committed
to working with its customers and developers to ensure a smooth transition to Mac OS-based products.

Apple Computer, Inc. ignited the personal computer revolution in the 1970s with the Apple II, and
reinvented the personal computer in the 1980s with the Macintosh. Apple is now recommitted to its
original mission - to bring the best personal computing products and support to students, educators,
designers, scientists, engineers, businesspersons and consumers in over 140 countries around the

The statements in this document regarding future products and strategy are forward looking and
subject to risk and uncertainty. Potential risks and uncertainties include, without limitation, the
demand from consumers and businesses and competitive factors. For a detailed discussion of
factors that may affect the Company's operating results, interested parties should review the
Company's SEC reports, including Apple's Annual Report on Form 10-K for the year ended
September 26, 1997, as well as the Form 10-Q for the quarter ended December 26, 1997.

Press Contacts
Tami Begasse
Apple Computer, Inc.
(408) 974-3156

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

NOTE TO EDITORS: For additional information visit Apple's website (,
call Apple's Media Helpline at (408)974-2042, or contact Cara Lewis at our PR agency, Niehaus
Ryan Group, Inc., (650)827-7052.

Apple, the Apple logo, Macintosh and QuickTime are registered trademarks and of Apple Computer,
Inc. Additional company and product names may be trademarks or registered trademarks of the
individual companies and are respectfully acknowledged.       companies and are respectfully acknowledged.