Apple (AAPL)

.Mac™

The Company’s .Mac offering is a suite of Internet services that for an annual fee provides Macintosh users with a powerful set of Internet tools. .Mac services include: HomePage, for personal web sites; iDisk, a

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virtual hard drive accessible anywhere with Internet access; .Mac Sync, which keeps Safari bookmarks, iCal® calendars, Address Book information, Keychain® (passwords), and Mac OS X Mail preferences up-to-date across multiple Macintosh computers and available via web browser when users are away from their Mac; .Mac Mail, an ad-free email service; and Learning Center, featuring tutorials for certain software applications. The current version of .Mac includes .Mac Groups, a service that helps members communicate, coordinate schedules, and stay in sync with private groups of friends or colleagues; an updated version of .Mac Backup software that allows members to archive the content of their iLife Home folder; and combined iDisk and email storage of up to 1GB for individuals and 2GB for families.

.Mac™

The Company’s .Mac
offering is a suite of Internet services that for an annual fee provides
Macintosh users with a powerful set of Internet tools. .Mac services include:
HomePage, for personal web sites; iDisk, a

15

virtual hard drive
accessible anywhere with Internet access; .Mac Sync, which keeps Safari
bookmarks, iCal® calendars, Address Book information, Keychain® (passwords),
and Mac OS X Mail preferences up-to-date across multiple Macintosh computers
and available via web browser when users are away from their Mac; .Mac Mail, an
ad-free email service; and Learning Center, featuring tutorials for certain
software applications. The current version of .Mac includes .Mac Groups, a
service that helps members communicate, coordinate schedules, and stay in sync
with private groups of friends or colleagues; an updated version of .Mac Backup
software that allows members to archive the content of their iLife Home folder;
and combined iDisk and email storage of up to 1GB for individuals and 2GB for
families.

.Mac™

The Company’s .Mac offering is a suite of Internet services that for an annual fee provides Macintosh users with a powerful set of Internet tools. .Mac services include: HomePage, for personal web sites; iDisk, a virtual hard drive accessible anywhere with Internet access; .Mac Sync, which keeps Safari bookmarks, iCal® calendars, Address Book information, Keychain® (passwords), and Mac OS X Mail preferences up-to-date across multiple Macintosh computers and available via web browser when users are away from their Mac; .Mac Mail, an ad-free email service; and Learning Center, featuring tutorials for certain software applications. The current version of .Mac includes .Mac Groups, a service that helps members communicate, coordinate schedules, and stay in sync with private groups of friends or colleagues; an

11

updated version of .Mac Backup software that allows members to archive the content of their iLife Home folder; and a four-fold increase in combined iDisk and email storage to 1GB for individuals and 2GB for families.

.Mac™

The Company’s .Mac offering is a suite of Internet
services that for an annual fee provides Macintosh users with a powerful set of
Internet tools. .Mac services include: HomePage, for personal web sites; iDisk,
a virtual hard drive accessible anywhere with Internet access; .Mac Sync, which
keeps Safari bookmarks, iCal® calendars, Address Book information, Keychain®
(passwords), and Mac OS X Mail preferences up-to-date across multiple Macintosh
computers and available via web browser when users are away from their Mac;
..Mac Mail, an ad-free email service; and Learning Center, featuring tutorials
for certain software applications. The current version of .Mac includes .Mac
Groups, a service that helps members communicate, coordinate schedules, and
stay in sync with private groups of friends or colleagues; an

11

updated version of .Mac
Backup software that allows members to archive the content of their iLife Home
folder; and a four-fold increase in combined iDisk and email storage to 1GB for
individuals and 2GB for families.