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 world.

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.

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

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