MACWORLD EXPO, SAN FRANCISCO—January 7, 2002—Apple® today announced it will make Mac® OS X the default operating system on all new Macs, starting today on some products, and expanding to all products by the end of this month. Mac OS X is the ultimate operating system for the new millennium, combining a rock-solid, UNIX-based core with breathtaking graphics and Apple’s legendary ease-of-use.

Today, Mac OS X has more than 2,500 native applications from companies such as Microsoft and Adobe, and support for the most popular digital devices now available from Canon, Epson, HP, Kodak, Nikon, Olympus, Palm, Panasonic and Sony.

“The time is now right for most Mac users to make Mac OS X their primary operating system,” said Steve Jobs, Apple’s CEO. “Mac OS X is the world’s most advanced operating system, marrying the power of UNIX with the simplicity and elegance of the Mac. With thousands of native third-party applications and support for almost every popular digital device on the planet, it’s now time to make the switch.”

Mac OS X has been included, along with Mac OS 9, on all Apple systems shipped since May of 2001. Mac OS 9 will continue to be shipped on all computers, enabling users to run Mac OS 9 applications in “Classic” mode from within Mac OS X, or have the option of booting into Mac OS 9 if they choose.

As the center of Apple’s Digital Hub strategy, Mac OS X enables Mac users to turn their computer into a hub for creating, editing, storing and sharing digital photos, movies and music with family and friends. Combined with Apple’s own award-winning iTunes™ 2, iMovie™ 2, iDVD 2 and the new iPhoto, Mac OS X is the ultimate platform for today’s digital lifestyle. Whether it’s ripping CDs, playing or burning CDs and DVDs, or sending digital photos via the Internet, everything is easier with Mac OS X.

Mac OS X is the most advanced operating system on the market today with its crash-proof, secure UNIX-based architecture, stunning Aqua® interface and advanced features found only on a Mac®. Mac OS X is full of innovations like the Dock, which provides an instant visual shortcut to applications, documents, web sites, and system controls, and features like Instant-On which wakes any iBook® or PowerBook® instantly—ready to work in a split-second when needed, but conserving energy when it’s not. And no other operating system is easier to use or comes complete with Apple’s award-winning digital lifestyle software.

All Apple systems will ship with Mac OS X v10.1.2 as the default operating system starting in January and will carry Mac OS 9.2 for classic environment compatibility. Mac OS X requires a minimum of 128MB of memory and is designed to run on the following Apple products: iMac®, iBook, Power Macintosh® G3, Power Mac™ G4, Power Mac G4 Cube and any PowerBook introduced after May 1998.

In addition to the thousands of third-party applications on the market, all Apple hardware systems now come bundled with several native Mac OS X applications.

The new iMac and iBook hardware bundles include: AppleWorks 6, Apple Developer Tools X, iDVD 2 (requires SuperDrive), iMovie 2, iTunes 2, iPhoto (available as a free download at www.apple.com), Adobe Acrobat Reader 5.0, AOL 5.0, Earthlink 2.5, Intuit’s Quicken 2002 Deluxe (iMac only), James Thompson PCalc 2, Microsoft’s Internet Explorer 5.1, Pangea’s OttoMatic, Smith Micro FAXstf X Preview and Software MacKiev’s World Book for Mac OS X.

The Power Mac and PowerBook hardware bundles include: Apple Developer Tools X, iDVD 2 (requires SuperDrive), iMovie 2, iTunes 2, iPhoto (available as a free download at www.apple.com), Adobe Acrobat Reader 5.0, Ambrosia Software Snapz Pro X, Caffeine Software PixelNhance 1.5, Code Line Communications Art Directors Toolkit for X, Earthlink 2.5, FileMaker Pro Trial 5.5, James Thompson PCalc, Lemke Software GraphicConverter 4.1, Microsoft’s Internet Explorer 5.1, Omni Group’s OmniGraffle and OmniOutliner, and Smith Micro FAXstf X Preview.

Apple 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 committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.

Apple, the Apple logo, Macintosh, Mac, Aqua, iBook, iMac, iMovie, iTunes, Mac OS, PowerBook, Power Mac and Power Macintosh are either registered trademarks or trademarks of Apple. Other company and product names may be trademarks of their respective owners.