APPLE COMPLETES $661.25 MILLION CONVERTIBLE DEBT PLACEMENT

Apple Computer, Inc. (Nasdaq: AAPL) announced today the successful completion of a $661.25 million private placement of convertible subordinated debentures due June 1, 2001.

"Completion of this transaction brings Apple's cash balance to approximately $1.3 billion and significantly reinforces the Company's capital structure," said Apple Executive Vice President and Chief Financial Officer Fred Anderson. "Moreover, we expect it will provide us with sufficient liquidity to execute against our newly-formed strategic plans which are designed to return the company to profitability."

On May 13, Apple Chairman and Chief Executive Officer Dr. Gilbert F. Amelio described the framework of Apple's new strategic direction. Among the key elements of the strategy are capitalization on the convergence of computing and communications, a focus on Internet products and solutions, renewed emphasis on providing superior value to customers and a commitment to disciplined business practices.

On May 31, the Company announced a realignment of its organization to support its new strategy. The new organization structure promotes managerial accountability, streamlined decision-making and customer orientation.

The notes and the common stock issuable upon the conversion thereof have not been registered under the Securities Act of 1933 or state securities laws and may not be sold in the United States absent registration or qualification or an applicable exemption from registration or qualification requirements.

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, personal digital assistants 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.

Customer Information Contact: If you are considering the purchase of an Apple product and would like to have product information faxed to you, please call 1-800-462-4396 in the U.S. or 1-800-263-3394 in Canada. If you do not have a fax machine or would like to locate an Apple authorized reseller near you, please call 1-800-538-9696. Customers outside the U.S. should contact their local Apple representatives for information.

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