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<div class="left_inner_box_heading"><h1>[MD1] Apple Announces Reorg</h1></div>
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<p>Apple's New Structure Brings Sharp Focus on Key Businesses</p>
<p>Apple Computer, Inc. today implemented a streamlined organizational<br />
structure that consolidates the Company's product development, marketing,<br />
sales, support, and operations efforts into groups sharply focused on<br />
Apple's strategy. With this organization, Apple is focusing research and<br />
development on products that are central to its key businesses, sales teams<br />
to its market strengths. It is also integrating Apple's and NeXT's<br />
development resources, to execute its OS strategy.</p>
<p>"We are reshaping our product development, sales, and marketing efforts<br />
into simpler, leaner teams that can quickly bring exceptional products to<br />
market--and then aggressively market them to customers in our key markets"<br />
said Dr. Gilbert Amelio, Apple's Chairman and CEO. "The organization and<br />
team we're announcing today represent the right people, in the right<br />
places, to bring Apple back to its basics and return us to profitability by<br />
the end of the fiscal year."</p>
<p>The new structure includes the following key elements and executives:</p>
<p>Technology Office<br />
Led by Ellen Hancock, this group includes Reliability and Quality, the<br />
Chief Scientist, the Apple Fellows, and the Advanced Technology Group.</p>
<p>Research and Development<br />
The Company consolidates its multiple product development organizations<br />
into two basics groups: The System Software Engineering team will be led by<br />
Avie Tevanian, coming from NeXT. The Hardware Engineering team will be led<br />
by Jon Rubinstein, most recently COO of FirePower Systems, Inc.</p>
<p>Marketing<br />
With today's move, Apple, for the first time, brings all its marketing<br />
functions into a single organization. Guerrino De Luca, previously head of<br />
Apple's Claris subsidiary, leads the Company's new global marketing group,<br />
with responsibility for all Product Marketing, Developer Relations,<br />
Licensing, Marketing Communication, Advertising, and Events activities. The<br />
NeXT marketing functions will also report to this marketing organization.</p>
<p>Worldwide Sales and Support<br />
The Company's new Worldwide Sales and Support Organization, led by Marco<br />
Landi, will sell and bring service and support to customers in the<br />
education, business, publishing, and consumer markets. Claris, now led by<br />
Dominique Goupil, most recently senior vice president of Claris Sales and<br />
Marketing, will report into this organization. The Claris charter and<br />
strategy remain unchanged. The NeXT sales force and professional services<br />
under Mitch Mandich, will also report into the Worldwide Sales and Support<br />
Organization.</p>
<p>Finance and Administration<br />
Led by Fred Anderson, this group comprises Finance, Corporate Development,<br />
Information Systems, Investor Relations, and Facilities.</p>
<p>Operations<br />
Led by George Scalise, this group includes Human Resources, Legal,<br />
Worldwide Manufacturing and Procurement, Government Relations, and Imaging.</p>
<p>All these functions and the executives who will lead them will report to<br />
Dr. Gilbert Amelio, Apple's CEO and Chairman, and form the Executive<br />
Committee. In addition, the two co-founders of the Company, Steve Jobs and<br />
Steve Wozniak, will have an advisory role to Dr. Amelio, and as such,<br />
participate into the Executive Committee.</p>
<p>Additionally, the organization will define and manage Apple's upcoming<br />
restructuring, which will include elimination of programs and positions.<br />
The implementation of the restructuring will begin in early March.</p>
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