Apple, IBM Finalize Milestone Technology Alliance

SAN FRANCISCO, Oct. 2, 1991 -- PRNewswire -- Apple Computer Inc. (NASDAQ: AAPL) and IBM (NYSE: IBM) today announced a series of comprehensive agreements that will propel the personal computer industry into a new era.

The historic agreements, in which Motorola Inc. (NYSE: MOT) will play a key technology role, cover a range of hardware and software initiatives and follow the terms of the companies' letter of intent announced three months ago.

For customers, the benefits of the alliance will begin in the near future with Macintosh computers communicating even more readily in large-system networks. These agreements then will extend the benefits of IBM RISC and Macintosh technologies across a broader range of open-systems platforms. And longer term, Apple and IBM have formed two software joint ventures that will create exciting new capabilities, make computers easier to use, and make computer programming simpler and much faster.

For the industry, these initiatives will expand business opportunities for developers and other vendors while accelerating the pace of technology creation. And while IBM and Apple will work together to cultivate these opportunities, they will continue to compete unrelentingly with their own systems.

"These agreements are the foundation for a renaissance," said John Sculley, Apple's chairman and chief executive officer. "We're dramatically expanding customers' choices while lowering their risks when buying computers. We're making open systems even more powerful and easier to use. And we're building new foundation technologies that will be a framework for innovation across a vast array of industries."

John F. Akers, chairman of IBM, said, "The second decade of personal computing begins today. Increasingly, systems software and semiconductor technology are defining where essential value is added to computers. With this alliance, Apple and IBM are drawing on their strengths and those of Motorola to continue setting the pace for our customers."

George Fisher, chairman and chief executive officer of Motorola, added, "These agreements combine the unique talents of three great companies to create a powerful new computing platform. Motorola is proud to invest its microprocessor design and manufacturing leadership in this seminal undertaking."

The alliance consists of five distinct technology initiatives. Three expand the companies' current technologies. Two focus on the creation of new foundation technologies.

Expansion to Current Technologies

Macintosh and IBM systems networking: Through new development and technology and software licensing, Apple and IBM will add to the range of customer options for integration of Macintosh personal computers into IBM networks. The first products from this agreement will be available as early as December 1991.

Powerful RISC microprocessors: Apple, IBM and Motorola will create a new family of Reduced Instruction Set Computing (RISC) microprocessors optimized for personal computers and entry-level workstations. Derived from IBM's single-chip implementation of its POWER RISC architecture, the new PowerPC chips will be designed in Austin, Texas by Motorola and IBM engineers. The PowerPC chips, to be used in some future Macintosh and IBM products, will be manufactured and made available for sale to the industry by Motorola. They are expected to be available in two to three years.

Open-systems platform: Apple and IBM are announcing PowerOpen, a new open-systems environment made possible through licensing agreements. PowerOpen derives from AIX, IBM's industry-standard version of UNIX; the Macintosh interface; and the POWER architecture. The environment enables a system to run both Macintosh and AIX applications on RISC-based hardware from both companies. Examples of PowerOpen systems will include some future RISC System/6000's and RISC-based Macintosh systems. This easy-to-use, standards-based environment is expected to be available in two to three years. IBM will continue to enhance its RISC System/6000 independently. Apple also will continue to enhance its A/UX offering.

New Foundation Technologies

-- Multimedia joint venture: Apple and IBM will form a new independent company that will create and license multimedia technologies for a wide range of companies and industries. Products resulting from the joint venture will be available in the mid-1990s.

Object-oriented software joint venture: Apple and IBM will form an independent joint venture that will develop a next-generation operating environment based entirely on object-oriented technology. The joint venture will license the technology widely, and both parent companies will use it in future products. Apple will integrate aspects of this object-oriented technology into Macintosh. IBM will integrate aspects of object-oriented technology into OS/2 and AIX. The fully object-oriented environment is expected to be available in the mid-1990s.

As part of the agreements, Apple and IBM also announced a cross- license of patent and visual displays, including a limited license to the Macintosh visual displays.

Agreements have been submitted for government review and effectiveness of each is subject to conditions, including closings.

Apple, the Apple logo, Macintosh, A/UX are registered trademarks of Apple Computer Inc. OS/2 and AIX are registered trademarks of International Business Machines Corp. RISC System/6000, PowerOpen, and PowerPC are trademarks of International Business Machines Corp. UNIX is a registered trademark of UNIX System Laboratories.

NOTE TO EDITORS: This is one of six press releases coming from Apple Computer Inc.

CONTACT: Christopher Escher of Apple Computer Inc., 408-974-2202; or Paul Bergevin of IBM, 914-765-6630; or Ken Phillips of Motorola Inc., 602-952-3637/ 08:16 EDT