iTunes offers customers a simple, one-click option to easily upgrade their entire library of previously purchased songs to the higher quality DRM-free iTunes Plus format for just 30 cents per song or 30 percent of the album price. The iTunes Store will begin offering eight million of its 10 million songs in Apple’s DRM-free format, iTunes Plus, today with the remaining two million songs offered in iTunes Plus by the end of March.

iPhone 3G users can now preview and purchase the entire iTunes Store music catalog on their iPhone 3G over their 3G network, just as they do with Wi-Fi today, for the same price and in the same high quality format. Songs purchased on an iPhone will automatically sync to a user’s computer the next time they sync their iPhone.

The iTunes Store is the world’s most popular online music, TV and movie store with a catalog of over 10 million songs, over 30,000 TV episodes and over 2,500 films including over 600 in stunning high definition video. With Apple’s legendary ease of use, pioneering features such as iTunes Movie Rentals, integrated podcasting support, the ability to turn previously purchased tracks into complete albums at a reduced price, and seamless integration with iPod® and iPhone, the iTunes Store is the best way for Mac® and PC users to legally discover, purchase and download music and video online.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.

“iTunes Movie Rentals instantly brings great movies from all the major studios directly to your iPod, iPhone, TV or computer—without having to drive to the video store or wait for DVDs to arrive in the mail,” said Steve Jobs, Apple’s CEO. “Movie lovers can now discover and enjoy movies as simply and easily as music lovers discover and enjoy music today on iTunes.”

“Apple has created an incredibly easy and innovative way to rent and enjoy movies,” said Jim Gianopulos, chairman and chief executive officer of Fox Filmed Entertainment. “Millions of movie lovers will be able to watch wonderful movies from Fox and the other major studios whenever and wherever they want, be it on their computer, TV, iPod or iPhone.”

iTunes Movie Rentals feature iTunes’ legendary ease of use, which makes discovering and enjoying movie rentals as simple and easy as buying music on iTunes has always been. Once a movie is rented, it starts downloading from the iTunes Store directly to iTunes or Apple TV, and users with a fast Internet connection can start viewing the movie in seconds. Customers have up to 30 days to start watching it, and once a movie has been started customers have 24 hours to finish it—or watch it multiple times.

The all new Apple TV software delivers an entirely new user experience centered around iTunes Movie Rentals, allowing movie fans to rent and watch movies right from their widescreen TV, with no computer required. Users can also view photos from their computers, Flickr and .Mac Web Galleries on their widescreen TV as slideshows or screen savers, and anytime photos are updated on Flickr or .Mac they are automatically updated on Apple TV. Apple TV users can now browse and enjoy the iTunes Store podcast directory of over 125,000 video and audio podcasts, view over 50 million originally created videos from YouTube, or choose from a selection of six million songs, over 600 TV shows and 10,000 music videos to purchase directly from their Apple TV. Purchases downloaded to Apple TV are automatically synced back to iTunes on the user’s computer for enjoyment on their computer, iPod® or iPhone.

Apple TV easily connects to a broad range of widescreen TVs and home theater systems and comes standard with HDMI, component video, analog and optical audio ports. Using high-speed AirPort® 802.11 wireless networking, Apple TV now automatically plays all of your iTunes content without setup or management**.

Pricing & Availability
Movie rentals from the iTunes Store for Mac® or Windows require iTunes 7.6, available as a free download immediately from www.itunes.com. iTunes Movie Rentals require a valid credit card with a billing address in the country of purchase. iTunes Movie Rentals are available in the US only and are $2.99 (US) for library titles and $3.99 (US) for new releases, and high definition versions are priced just one dollar more with library titles at $3.99 (US) and new releases at $4.99 (US).

The new Apple TV software will be available as a free automatic download to all Apple TV customers later this month. Apple TV, which includes the Apple Remote, is available from the Apple Store® (www.apple.com), Apple’s retail stores and Apple Authorized Resellers for a suggested retail price $229 (US) for the 40GB model, and for $329 for the 160GB model. Apple TV requires an 802.11g/n wireless network or 10/100 Base-T Ethernet networking, a broadband Internet connection and a high definition widescreen TV. iPod games will not play on Apple TV.

*Movie rentals work on iPod classic, iPod nano with video and iPod touch.
**Compatible with 802.11b/g/n. Based on an IEEE 802.11n draft specification. Wireless video streaming requires an 802.11g/n network.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.

“iPhone doesn’t stand still—we’re making it better and better all the time,” said Steve Jobs, Apple’s CEO. “We’ve delighted millions of users with this revolutionary and magical product and it’s great to share these improvements with them.”

Maps, one of the most popular and helpful applications on iPhone, has a new interface that is simpler and easier to use and adds incredible new features such as the ability to find your location automatically. With just the tap of a button, iPhone can now triangulate your position using nearby Wi-Fi base stations or cellular towers. You can use this as a starting or ending point for directions or to find local points of interest. The new hybrid map view combines map view and satellite view so you can see major street names overlaid on satellite imagery.

Users can now create Web Clips—icons on the home screen that take you directly to your favorite websites, including to the exact spot you have zoomed into. Web Clips are a great way to easily track websites that you frequently check such as news, blogs, sports sites and movie listings. In addition, users can now customize their home screen by repositioning any of the icons, and even create up to nine different home screens that they can easily flick between.

iPhone’s new software update also adds the ability to send the same SMS text message to multiple people, and iPhone saves a history of your text messages, so with one tap you can send a new message to the same group.

With Apple’s new iTunes Movie Rentals, movie fans can rent movies on their computer, easily and quickly transfer them to their iPhone, and watch them anywhere on iPhone’s gorgeous 3.5 inch screen. Users can also now navigate forward or backward through their movies by chapters, select alternate language tracks and view subtitles, if available.

Pricing & Availability
The iPhone software update 1.1.3 is available immediately for free via iTunes 7.5 or later for all existing iPhone customers in the US, UK, Germany and France. New iPhone products shipping from the factory will include the software update and existing iPhone customers will automatically get the update for free when they sync their iPhone with iTunes (www.itunes.com). iTunes Movie Rentals are available in the US only. Further information for iPhone can be found at www.apple.com/iphone.

*Availability and precision of Maps positioning features will vary depending on actual location.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.

“Bring Time Capsule home, plug it in, click a few buttons on your Macs and voila—all the Macs in your house are being backed up automatically, every hour of every day,” said Steve Jobs, Apple’s CEO. “With Time Capsule and Time Machine, all your irreplaceable photos, movies and documents are automatically protected and incredibly easy to retrieve if they are ever lost.”

Built to work seamlessly with Time Machine, Time Capsule lets users wirelessly back up all of the data on their Macs, find lost files and even restore all of their software. In the event a file is lost, users can wirelessly search back through time to find deleted files, applications, photos and other digital media and then instantly restore the file. If it’s ever necessary, Leopard can also easily restore an entire system from the Time Machine backup on Time Capsule.

In addition to being the best way to back up a Mac, Time Capsule is also a full-featured Wi-Fi base station with the latest 802.11n technology. Delivering up to five times the performance and twice the range of 802.11g, 802.11n* is built in to Apple’s iMac® desktop and the entire Mac notebook line up, including MacBook®, MacBook Pro and the new MacBook Air. Time Capsule features a sleek design with a built-in power supply and connections to print wirelessly to a USB printer. With Time Capsule, it’s very easy for users to create a secure, wireless network for up to 50 users and set security restrictions such as Internet access limits for children’s computers.

At $299 for a 500GB model and $499 for a 1TB model and a fully integrated 802.11n AirPort Extreme® Base Station, Time Capsule can serve as a backup solution for multiple computers as well as the backbone for a high-speed, 802.11n wireless network, making it effortless and affordable for everyone at home, school or work to protect their digital files.

Additional Time Capsule features include:

o dual-band antennas for 2.4 GHz or 5 GHz frequencies;
o three Gigabit LAN ports;
o one Gigabit Ethernet WAN port;
o one USB 2.0 port;
o Wi-Fi Protected Access (WPA/WPA-2), 128-bit WEP encryption; and
o a built-in NAT firewall supporting NAT-PMP for features like Back to My Mac.

Pricing & Availability
Time Capsule will be available in February through the Apple Store® (www.apple.com), at Apple’s retail stores and Apple Authorized Resellers for a suggested retail price of $299 (US) for a 500GB hard drive and $499 (US) for a 1TB hard drive.

*Time Capsule is based on an IEEE 802.11n draft specification. Actual performance will vary based on range, connection rate, site conditions, size of network and other factors.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.

“We’ve built the world’s thinnest notebook—without sacrificing a full-size keyboard or a full-size 13-inch display,” said Steve Jobs, Apple’s CEO. “When you first see MacBook Air, it’s hard to believe it’s a high-performance notebook with a full-size keyboard and display. But it is.”

MacBook Air has a vibrant 13.3-inch LED-backlit glossy widescreen display that is energy efficient, and its spacious trackpad offers multi-touch gesture support for pinch, rotate and swipe, making it more intuitive than ever to browse and rotate photos or zoom into web pages in Safari™. MacBook Air features a full-size keyboard design in a sleek and durable aluminum enclosure. The backlit keyboard makes it ideal for dimly lit environments such as airplanes, studios or conference halls, and a built-in ambient light sensor automatically adjusts the brightness of the keys as well as the display brightness for optimal visibility.

MacBook Air delivers up to five hours of battery life for wireless productivity and includes AirPort Extreme® 802.11n Wi-Fi networking, which delivers up to five times the performance and twice the range of 802.11g*. Apple’s Migration Assistant software now enables users to quickly transfer files, applications and preferences from your old Mac® to MacBook Air right over your wireless network.

MacBook Air users can buy the companion MacBook Air SuperDrive, a compact external drive designed for MacBook Air, for just $99. The MacBook Air SuperDrive® is powered by MacBook Air’s USB port, eliminating the need to carry a separate power adapter. Many MacBook Air users will not find a need for an optical drive now that they can wirelessly rent movies from the iTunes® Store, wirelessly backup files with Time Capsule and access the optical drives on remote PCs or Macs to wirelessly install software applications on MacBook Air.

MacBook Air is powered by Intel Core 2 Duo processors running at 1.6 GHz or 1.8 GHz, and includes as standard 2GB of memory and an 80GB 1.8-inch hard drive. An optional 64GB solid state drive contains no moving parts for added durability. Every MacBook Air includes a micro-DVI port so users can connect to Apple’s gorgeous 20-inch or 23-inch Cinema Displays to extend their desktop or connect to projectors and other displays via DVI, VGA, Composite and S-video adapters. MacBook Air includes USB 2.0 for plugging in peripherals or charging an iPod® or iPhone™, a headphone jack and Apple’s acclaimed MagSafe® Power Adapter designed especially for mobile users.

Every MacBook Air comes with iLife® ‘08, the most significant update ever to Apple’s award-winning suite of digital lifestyle applications, featuring a major new version of iPhoto® and a completely reinvented iMovie®, both seamlessly integrated with the new .Mac Web Gallery for online photo and video sharing. The new MacBook Air also comes with Leopard™, the sixth major release of the world’s most advanced operating system. Leopard introduces Time Machine™, an effortless way to automatically back up everything on a Mac; a redesigned Finder that lets users quickly browse and share files between multiple Macs; Quick Look, a new way to instantly see files without opening an application; Spaces, an intuitive new feature used to create groups of applications and instantly switch between them; a brand new desktop with Stacks, a new way to easily access files from the Dock; and major enhancements to Mail and iChat®. .Mac members can use the new Back to My Mac feature to browse and access files on their home computer from a MacBook Air over the Internet while out on the road.

The new MacBook Air embodies Apple’s continuing environmental progress with its aluminum enclosure, a material highly desired by recyclers; Apple’s first mercury-free LCD display with arsenic-free glass; and brominated flame retardant-free material for the majority of circuit boards as well as PVC-free internal cables. In addition, MacBook Air consumes the least amount of power of any Mac, and its retail box, made primarily from 100 percent post-consumer recycled material, is 56 percent smaller by volume than the previously smallest MacBook packaging.

Pricing & Availability
The new MacBook Air will be shipping in two weeks through the Apple Store® (www.apple.com), Apple’s retail stores and Apple Authorized Resellers for a suggested retail price of $1,799 (US), and includes:

* 13.3-inch LED-backlit glossy widescreen display with 1280×800 resolution;
* 1.6 GHz Intel Core 2 Duo processor with 4MB L2 cache;
* 800 MHz front-side bus;
* 2GB of 667 MHz DDR2 SDRAM;
* 80GB hard disk drive with Sudden Motion Sensor;
* Intel Graphics Media Accelerator X3100;
* Micro-DVI port (includes Micro-DVI to VGA and Micro-DVI to DVI Adapters);
* built-in iSight video camera;
* built-in AirPort Extreme 802.11n wireless networking and Bluetooth 2.1+EDR;
* one USB 2.0 port;
* one headphone port;
* multi-touch TrackPad with support for advanced multi-touch gestures including tap, scroll, pinch, rotate and swipe; and
* 45 Watt MagSafe Power Adapter.

Build-to-order options and accessories include the ability to upgrade to a 1.8 GHz Intel Core 2 Duo processor; 64GB solid state drive, MacBook Air SuperDrive, Apple USB Ethernet Adapter, Apple USB Modem, Apple MagSafe Airline Adapter, Apple Remote and the AppleCare Protection Plan. Additional build-to-order options also include pre-installed copies of iWork ‘08, Logic® Express 8, Final Cut® Express 4 and Aperture™ 1.5.

*Battery life depends on configuration and use. See www.apple.com/batteries for more information. AirPort Extreme is based on an IEEE 802.11n draft specification. Actual performance will vary based on range, connection rate, site conditions, size of network and other factors.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.