For Immediate Release Contact: Jeremy Milner
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Jill Burnie
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SUN ACQUIRES MANAGED SERVICES PROVIDER SEVENSPACE IN CASH DEAL

Santa Clara , CA (November 30, 2004) -- Sun Microsystems Inc. has entered into a definitive agreement to acquire Ashburn, Virginia based SevenSpace Inc. for an undisclosed amount of cash. The acquisition is expected to close by the third quarter of Sun's 2005 fiscal year, ending March 27, 2005. SevenSpace is a leader in providing remote management of IT networks, hardware and software for over 120 corporate and government clients. Founded in 2000, SevenSpace's shareholders include Forsythe Technology, Trinity Ventures, Greenbridge Capital, Lehman Brothers and Spectrum Equity Investors.

"Our shareholders feel this transaction is a great win for both them and the company's employees. Sun is a premium company in our industry, and we are excited by what we can achieve as part of Sun's services organization," said SevenSpace President and Chief Executive Peter Weber.

"Customers want alternatives to traditional outsourcing," said Vice President of Customer Integration for Sun's Customer Network Services division Scott Woods. "Customers want to decrease cost but maintain control." The acquisition allows Sun to compete with International Business Machines Corp.

and Hewlett-Packard Co. for customers that want managed services instead of, or in addition to, fully outsourced services. IBM and HP are more outsourcing-focused, said Woods. SevenSpace will broaden Sun's managed services offerings to include support for Hewlett-Packard's legacy HP-UX operating system and IBM's AIX systems, along with Microsoft Windows and Red Hat Linux. Previously, Sun only managed its own systems.

SevenSpace has more than 100 customers in industries such as financial services, government, manufacturing and retail. SevenSpace's technology also manages enterprise applications, including SAP, Oracle e-business suites, PeopleSoft and Siebel; databases, including Oracle and Microsoft SQL Server; operating systems, including Solaris, Windows and Linux platforms; and network devices. Revolution Partners, an investment bank that specializes in providing M&A services and raising private capital for growth companies, represented SevenSpace in the transaction. "It has been a pleasure to work with Peter Weber and the outstanding management team at SevenSpace, and we share their excitement in the new opportunities created by the combination", said Robert Mann, a Partner at Revolution. "Helping growing technology companies realize their vision through this kind of combination is what makes my job rewarding."



Morgan Keegan Technology Group is one of the nation's largest investment banks focused exclusively on Mergers & Acquisitions and Private Capital Fundraising Advisory Services for technology companies. All of our clients benefit from senior-level attention from partners with deep sector expertise.

Morgan Keegan Technology Group was founded in 2001 by former senior technology bankers from major Wall Street investment banks. With offices in Boston, San Francisco and Los Angeles, Revolution applies partner-level experience to the successful execution of advisory and financing transactions for emerging technology companies in industry sectors including software, Internet business services, telecommunications, wireless, clean tech, digital media, storage and semiconductors. For more information, visit www.revolutionpartners.com.
 
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