Details of Apple's Functional Organization

Apple's Technology Office

Apple's Technology Office, reporting to Ellen Hancock, is responsible for assessing and driving the technical strategy across hardware and software for Apple Computer Inc. In addition, the department is responsible for ensuring the Reliability and Quality across all product lines for the company. The Advanced Technology Group and Human Interface Design Center, and Apple Fellows also report to this group.

Chief Scientist - Larry Tesler
Larry Tesler is the Chief Scientist of Apple and will continue to advise Gil and other executives on technical issues.

Advanced Technology Group and Human Interface Design Center - Rick LeFaivre
The Apple Technology Group houses Apple's research laboratories, human interface technologies and advanced systems architecture.

Apple's Reliability and Quality Assurance (ARQA) - Mike Connor
ARQA is responsible for the qualification and testing of all software and hardware products.

Hardware Engineering Organization

The Hardware Engineering organization, reporting to Jon Rubinstein, will be responsible for hardware development.

Industrial Design - Jonathan Ive
The Industrial Design Group's charter is to add true user value to our products. The group designs distinctive, unmistakably Apple products that will be engaging, delightful to use and accurately targeted to address Apple's intended markets. Exploiting our design asset to add distinctly superior user value is a key component to Apple's value proposition and brand equity.

Macintosh Products Group - Jack McHenry
The Macintosh Products group architects, designs and develops the core Macintosh technologies and desktop products required by the Publishing, Entertainment, New Media (PEN), K-12 and Consumer markets. The organization provides technology roadmaps, architectural leadership and CPU products for each of these markets. It will focus on excellence in engineering, converged architecture and sustainable leadership in the technologies valued by users in Apple's key markets.

Server Development - Barry Needam
This group is responsible for all hardware and software development for the Apple line of workgroup and network servers. The server line includes the 6150, 7250 and 8550 workgroup servers running Mac OS as well as the NS500 and award winning NS700 network servers running AIX. Apple Internet services and web pages run on Apple network servers.

Engineering Interface & Design - Jackie Streeter
Engineering Interface & Design is responsible for product design and process development. In addition, EI&D leads a cross-functional team of Apple employees to focus on improving Apple's relationship with Mac users.

PowerBook Engineering - Gregg Zehr
The charter for the PowerBook engineering team is to continue the PowerBook renaissance by designing and developing innovative new mobile Macintosh personal computers. We will provide these designs with a combination of in-house and OEM engineering as we integrate Macintosh and industry standard parts into leading edge products.

Systems and Displays - Jon Rubinstein (acting)
This group will focus on the areas of cross-functional communication products and technology; PC-compatible cards and product development; desktop display architecture and technology; and solutions which enhance the Macintosh platform.

Software Engineering Organization

The Software Engineering organization's charter is to bring Apple back to a leadership role in the computer industry with Rhapsody, the evolution of Mac OS, and additional stand out products in the Internet, Enterprise and Multimedia usage areas. It reports to Avie Tevanian.

Rhapsody OS - Bertrand Serlet
Mac OS - Steven Glass
Both groups will have similar structures; they will each be responsible for their own core OS engineering, core networking, tools and Java VM teams along with some unique functions particular to their specific implementations.

Internet and Enterprise - TBD
This group will establish Apple as a leading Internet platform and provider of software solutions for the Enterprise market. This group was created by combining groups from AppleNet and NeXT. Parts of the Communications Technology group and the Components group will also move into this organization over time (other parts remain in the Mac OS and Rhapsody organizations). For the time being, Communications Technology and Components will report to Steven Glass while we complete the corporate planning process.

OS Technology - Ly-Huong Pham
This group will continue to be responsible for delivering innovative User Experience products, Text and International technologies and additional OS Layers that run on both OS platforms.

Interactive Media - Carlos Montalvo
This group will continue to extend Macintosh's leadership in media authoring and Internet publishing and to extend IMG's technologies to other platforms. IMG is made up of the engineering groups from the previous IMG organization.

Operations - Kwok Lau
The Operations group will be responsible for common support and services across the Software Engineering organization. This group is made up of Kwok's current organization with the addition of the Tech Pubs and Release Control and Software Quality organizations from NeXT. Kwok will provide the leadership to coordinate our project management efforts and to increase the efficiency and effectiveness of shared processes.

The Operations Organization

The Operations organization, reporting to George Scalise, will oversee a combination of administrative operations and business unit functions.

WW Operations - Jim McCluney
Jim will continue in this role and will focus on further enhancing and improving the asset management and cost reduction efforts of the Company. We have made great strides in both of these endeavors during the past year and Jim and his team will continue to evaluate additional opportunities that will result in further improvements in our cost structure and thereby enhancing our competitiveness.

Imaging Peripheral Systems - Maury Austin
Maury will continue in this role with a charter to focus and grow that business profitably. The Imaging business has been a very successful contributor to the growth and profits of Apple in the past and is expected to continue to do so in the future.

Information Appliances - Jim Groff
Jim will continue in this role and will focus on moving that organization from an investment in developing products and technology to one that will capitalize on this investment and build a growing and profitable business commencing in FY'97.

Human Resources - Pat Sharp
Pat will play a major role in the implementation of our restructuring program. HR will continue to contribute to Apple's success by fostering world class working environments that attract and retain excellent people, motivates their alignment and commitment, and inspires them to excel at Apple.

Legal - Jack Douglas
Jack is responsible for protecting the interest of and facilitating the legitimate business interests of the corporation

External Affairs - Cathy Hutchinson
Cathy supports Apple Computer's competitiveness by managing global public policies that impact the business operations of the company, establishes a strategic liaison with the public sector, and ensures that Apple is seen by employees, community, industry, and government as a model corporate citizen wherever Apple does business and wherever Apple employees live and work.

The CFO Organization

The CFO organization, reporting to Fred Anderson, comprises financial and administrative functions:

Finance and Corporate Controller - Bob Calderoni
With the new appointment as the Company's Corporate Controller, Bob is adding the former Financial Controller's functions to those he previously had as Operations Controller. Bob's responsibilities include accounting, reporting, financial planning, operations finance, marketing finance, engineering finance and worldwide sales and service finance. Bob will be driving programs to reduce the Company's infrastructure costs and providing improved management information for decision making.

Restructuring Project Office - Bob Promm
Bob has accepted a new assignment to support Apple's Executive Committee manage the myriad of projects vital to Apple's turnaround.

Corporate Development - Doug Solomon
Doug will continue to be responsible for strategic planning, business planning, acquisitions, divestitures, and alliances. Corporate development has made many contributions including supporting development of our OS strategy, the NeXT acquisition and the Sun alliance.

IS&T - Joe Riera
Joe will continue to be responsible for Apple's information systems and telecommunications. Joe's key objectives over the next year will be to complete the conversion from AppleLink to an Internet based email solution, the installation of SAP business applications, and the conversion of non-SAP legacy applications to the Unix/Oracle platform while continuing to significantly reduce Apple's IS&T costs.

Treasurer - Jane Risser
Jane will continue to be responsible for Apple's cash management, foreign exchange and interest rate exposure management, capital structure, banking relations, employee shareholder administration, and risk management. Treasury has made significant contributions to strengthening the Company's liquidity over the last year and continues to do an outstanding job in hedging our foreign exchange risk.

Facilities - Bob Hecox
Bob continues to be responsible for managing Apple's facilities, building services, and environmental health and safety programs. Bob will be focused over the next six months on significantly reducing the cost of our facilities.

Tax & Customs - John Brennan
John continues to lead Apple's tax, customs and records management groups. The tax department has made several contributions to enhancing Apple's liquidity through income, property tax and duty refunds, and the favorable resolution of tax audit adjustments.

Investor Relations - Nancy Paxton
Nancy is responsible for establishing effective communications with security analysts, portfolio managers and investors. Nancy has initiated several programs that have improved Apple's communications with Wall Street over the last six months.

Internal Audit - TBD
We are in the process of building a small internal audit department that will focus on improving financial controls and business process improvement.

The Worldwide Sales and Service Organization

The Worldwide Sales and Service Organization, reporting to David Manovich, comprises all the geography sales organizations, as well as Claris, AppleAssist and NeXT Sales and Professional Services.

Apple North America will be organized around Market Driven Business Divisions, that will each include specialists that fully understand customer needs, speak the language of targeted customers and deliver the optimized system solutions to these customers.

North America Business Division - Mitch Mandich (acting)
This division is focused on 3 key markets: PEN (Publishing/Entertainment/New Media); Enterprise; SED (Scientific/Engineering/Design). The North America Business Division is chartered with Solutions Marketing, Solutions Engineering, Strategic Marketing and Sales. The division will work closely with the following channel partners: Distributors, VARs, System Integrators and Resellers.

North America Consumer Division - H.L. Cheung
The North America Consumer Division will focus on 2 key markets: Consumer and the Macintosh Installed Base. This division is chartered with Solutions Marketing, Solutions Engineering, Strategic Marketing and Sales. It will work with Retail and Catalog channel partners. This division drives installed-base marketing and sales activities and leads Apple's On-line commerce initiatives.

North America Education Division - Mike Lorion
The North America Education Division will be mainly focused on 2 key markets: K-12 and Higher Education. This division is chartered with Solutions Marketing, Solutions Engineering, Strategic Marketing and K-12 and Higher Education Sales. The division will work with the successful K-12 Sales Agent channel model and the Higher Education Channels.

Apple Assist - Mike Dionne
The Apple Assist Division's charter remains unchanged: It is responsible for Apple's Customer Service and Warranty activities. Worldwide Apple Sales Training will also report into this organization.

Europe/MEA (Europe, Middle East, Africa) - Jan Larsen
EMEA will drive its region's sales by channels, and provide Service & Warranty within its geography. The EMEA geo will also have Regional Product Marketing responsibilities.

Japan - Tetsuya Shiga
Asia-Pacific - Steve Vamos
Latin America - Luis Rubio
The Japan, Asia-Pacific and Latin America geos will cover the same responsibilities as Europe/MEA for their respective markets, with sales, product marketing and service/warranty activities.

Claris - Dominique Goupil
Claris also maintains an unchanged charter and strategy of selling Claris and Apple Software worldwide.

The Marketing Organization

The Marketing organization, headed by Guerrino De Luca, will have responsibility for the global marketing activities.

Product Marketing and Product Management - Philip W. Schiller
This group will have the same product marketing and product management responsibilities as above for our desktop and server products.

Mobile Systems Product Marketing and Product Management - Barbara Cardillo
This group will be responsible for the product line marketing and management functions such as product strategy and definition (in cooperation with R&D), product positioning, product communications, and product business management for our mobile products.

Platform and Technologies Marketing - Jim Gable
This function will be responsible for all the SW platform strategy and release definitions (in cooperation with R&D), SW product marketing, and customer and developer marketing of our SW platform, including Internet and multimedia. The NeXT marketing teams also report into this function.

Developer Relations - David Krathwohl
This group will continue to be the main interface and service provider for the developer community.

Licensing - Lamar Potts
This group will continue to be responsible for licensing the Mac OS and other Apple technologies.

Advertising and Internet Marketing - David Roman
This group will be responsible for WW Corporate Identity, WW Creative Service and Brand management as well as directing and executing the major advertising activities for the U.S. In addition they will be responsible for the Apple Website and Interactive Marketing.

Corporate Communications - Laurence Clavere
Corporate Communications will be responsible for all public relations, corporate message consolidation, employee communications, corporate collateral and corporate events management.

Customer and Market Intelligence - Michael Mace
This group will be responsible for installed base and other primary research in addition to market intelligence.

Chief Evangelist - Guy Kawasaki
Guy, as our premier Evangelist, will continue to spend time with all of our stakeholders, both inside and outside the Company, to evangelize the Mac advantage.

Apple's home page on the World Wide Web: