"It is growing more evident by the day that 'one size fits all' outsourcing is history, replaced by Managed Services that improve service levels at reduced costs while allowing customers to maintain control of their competitive advantage," said Marissa Peterson, executive vice president, Sun Services, Worldwide Operations and Chief Customer Advocate. "Sun is focused on addressing these requirements for all platforms, not simply Sun's. The acquisition of SevenSpace reinforces that commitment, and builds upon Sun's remote servicing expertise to extend to a world of new customers. Now they too can take advantage of Sun's pricing and service superiority to lower cost, while dramatically improving service levels."

SevenSpace technology manages enterprise applications, including SAP, Oracle e-business suites, PeopleSoft and Siebel; databases, including Oracle and Microsoft SQL Server; operating systems, including Solaris(TM) OS, Windows and Linux platforms; and network devices while allowing customers to maintain ownership of their people and heterogeneous IT assets. Unlike other outsourcing solutions that are largely people and equipment intensive, SevenSpace has a low equipment and people footprint. As a result, SevenSpace solutions may be implemented in a matter of days, not months or years.

SevenSpace employs a flexible, customer-defined solution methodology that enables customers to tailor an outsourced system management solution to their specific business needs and level of control desired. SevenSpace technologies enable remote system monitoring and management with high levels of operational efficiency and committed service levels. These technologies and processes enable rapid identification, acknowledgment, assessment and resolution of system events as well as change control and system management. The processes are designed to improve customer environment stability and availability while potentially reducing customer system management costs. SevenSpace has more than 100 customers in industries such as financial services, government, manufacturing and retail.

Pursuant to the terms of the agreement, Sun will acquire SevenSpace in an all cash transaction. The acquisition is expected to close by the third quarter of Sun's 2005 fiscal year, ending March 27, 2005. This acquisition is subject to customary closing conditions. Following completion of the acquisition, SevenSpace will become an integral part of Sun's Services organization under the leadership of Peterson.

Sun is planning on offering SevenSpace capabilities as part of the Sun services portfolio to its traditional markets, while developing new service offerings joining SevenSpace technologies and processes with existing Connected Customer investments to address new market opportunities. SevenSpace will continue to support its customers as Sun integrates its support processes. SevenSpace will be sold through direct and partner channels. Further details will be available after the acquisition closes.

"We are excited about the opportunity to extend the benefits of Sun's Connected Customer vision of reduced cost and complexity and accelerated network service deployments to our customers," said Peter Weber, president and chief executive officer, SevenSpace. "We look forward to combining our remote management expertise with Sun to continue to deliver our customers the outstanding solutions, service and support that they have come to expect."