Apple In Volume Production of New iMacs
$100 Price Increase Due To Rising Component Costs

MACWORLD EXPO, TOKYO-March 21, 2002-Apple=AE today announced it has shipped
more than 125,000 new flat-panel iMac=AE computers since its launch in
January and is now shipping over 5,000 new iMacs per day. The new iMac's
infinitely adjustable 15-inch LCD flat-panel display, powerful G4
processor, optional SuperDrive=81 and stunning design have made it the most
popular new Apple product since the original iMac was launched in 1998.

"Customer demand for the new iMac has been off the charts and we have
simply been unable to keep up with it. We are now in volume production,
shipping over 5,000 new iMacs per day, and hope to catch up with demand
soon," said Steve Jobs, Apple's CEO. "We appreciate our customers' and
resellers' patience during this ramp-up period."

Apple today also announced that due to significant increases in component
costs for memory and LCD flat-panel displays, the company will increase the
price of all new iMac models by $100 (US). Effective immediately, the new
suggested retail price for all three models will be $1,399 (US) for the 700
MHz G4 with CD-RW drive; $1,599 (US) for the 700 MHz G4 with Combo drive;
and $1,899 (US) for the 800 MHz G4 with SuperDrive. Apple will honor all
existing reseller orders and Apple online store orders as of today at the
original pricing of $1,299 (US) for the 700 MHz G4 with CD-RW drive; $1,499
(US) for the 700 MHz G4 with Combo drive; and $1,799 (US) for the 800 MHz
G4 with SuperDrive respectively.

"Rapidly increasing component costs is an industry-wide issue right now.
Since the new iMac's launch in January, memory costs have tripled and
flat-panel costs have increased twenty-five percent, with little relief in
sight," said Philip Schiller, Apple's senior vice president of Worldwide
Product Marketing. "Some manufacturers are de-configuring their models in
response to these rising costs-reducing memory and disk drive capacity, for
example. We've chosen to raise prices by $100 and stick with our three
fully-configured new iMac models."

All new iMac models include Mac=AE OS X and Apple's award-winning suite of
software for creating digital photos, movies and music and burning them on
CDs and DVDs (models with SuperDrive).

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.