Apple Computer Inc.

[rickj@pro-palmtree.cts.com (Rick Jenkins)]

        MOODY'S LOWERS DEBT OF APPLE TO JUNK STATUS
 
  Moody's Investors Service became the second ratings agency
to downgrade Apple Computer Inc.'s debt to the status of a
junk bond, affecting $305 million in long-term debt.
  The New York rating agency said it expects that Apple's
sales, profits, cash flow and liquidity will be under
"severe pressure for the next 12 to 18 months as new
management seeks to make needed internal changes to restore
profitability and bolster the company's competitive position
in the IBM compatible dominated personal computer industry."
  Moody's downgraded Apple Computer's long-term debt rating
to Ba2, a speculative category, from Baa3, an investment
grade rating. The rating agency kept the Ba2 long-term debt
rating under review for possible further downgrading.


-----
The Palmtree BBS  310-453-8726 v.32
Internet Email: rickj@pro-palmtree.cts.com