Apple (AAPL)

New Purchase Plan Benefits

        Since purchase rights are subject to discretion, including an employee's decision not to participate in the Purchase Plan, purchases of Common Stock under the Purchase Plan for the current fiscal year are not determinable. However, during the fiscal year ended September 25, 2004, three Named Executive Officers, Messrs. Cook, Johnson and Rubinstein, each purchased 2,362 shares at $8.99 per share and 776 shares at $8.10 per share. All executive officers as a group (10 persons) purchased 19,480 shares and all employees, excluding executive officers, as a group purchased 3,884,900 shares during the fiscal year ended September 25, 2004.

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PROPOSAL NO. 5
RATIFICATION OF APPOINTMENT OF AUDITORS

        The Audit & Finance Committee of the Board of Directors has appointed KPMG LLP ("KPMG"), independent auditors, to audit the Company's consolidated financial statements for fiscal year 2005. KPMG served as the Company's independent auditors for fiscal year 2004. At the Annual Meeting, the shareholders are being asked to ratify the appointment of KPMG as the Company's independent auditors for fiscal year 2005. In the event of a negative vote on such ratification, the Audit & Finance Committee will reconsider its selection. Representatives of KPMG will be present at the Annual Meeting and will have the opportunity to respond to appropriate questions and to make a statement if they so desire.