Apple's New Structure Brings Sharp Focus on Key Businesses

Cupertino, Calif.-- Feb. 4, 1997--Apple Computer, Inc. today implemented a streamlined organizational structure that consolidates the Company's product development, marketing, sales, support, and operations efforts into groups sharply focused on Apple's strategy. With this organization, Apple is focusing research and development on products that are central to its key businesses, unifying Apple's multiple marketing groups, and aligning the Company's sales teams to its market strengths. It is also integrating Apple's and NeXT's development resources, to execute its OS strategy.

"We are reshaping our product development, sales, and marketing efforts into simpler, leaner teams that can quickly bring exceptional products to market--and then aggressively market them to customers in our key markets" said Dr. Gilbert Amelio, Apple's Chairman and CEO. "The organization and team we're announcing today represent the right people, in the right places, to bring Apple back to its basics and return us to profitability by the end of the fiscal year."

The new structure includes the following key elements and executives:

Technology Office
Led by Ellen Hancock, this group includes Reliability and Quality, the Chief Scientist, the Apple Fellows, and the Advanced Technology Group.

Research and Development
The Company consolidates its multiple product development organizations into two basics groups: The System Software Engineering team will be led by Avie Tevanian, coming from NeXT. The Hardware Engineering team will be led by Jon Rubinstein, most recently COO of FirePower Systems, Inc.

With today's move, Apple, for the first time, brings all its marketing functions into a single organization. Guerrino De Luca, previously head of Apple's Claris subsidiary, leads the Company's new global marketing group, with responsibility for all Product Marketing, Developer Relations, Licensing, Marketing Communication, Advertising, and Events activities. The NeXT marketing functions will also report to this marketing organization.

Worldwide Sales and Support
The Company's new Worldwide Sales and Support Organization, led by Marco Landi, will sell and bring service and support to customers in the education, business, publishing, and consumer markets. Claris, now led by Dominique Goupil, most recently senior vice president of Claris Sales and Marketing, will report into this organization. The Claris charter and strategy remain unchanged. The NeXT sales force and professional services under Mitch Mandich, will also report into the Worldwide Sales and Support Organization.

Finance and Administration
Led by Fred Anderson, this group comprises Finance, Corporate Development, Information Systems, Investor Relations, and Facilities.

Led by George Scalise, this group includes Human Resources, Legal, Worldwide Manufacturing and Procurement, Government Relations, and Imaging.

All these functions and the executives who will lead them will report to Dr. Gilbert Amelio, Apple's CEO and Chairman, and form the Executive Committee. In addition, the two co-founders of the Company, Steve Jobs and Steve Wozniak, will have an advisory role to Dr. Amelio, and as such, participate into the Executive Committee.

Additionally, the organization will define and manage Apple's upcoming restructuring, which will include elimination of programs and positions. The implementation of the restructuring will begin in early March.

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.

Press Information Contact:
Katie Cotton
Apple Computer, Inc.
(408) 974-7269

Laurence Clavere
Apple Computer, Inc.
(408) 974-8643

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