The hardware sales took place in 1997 and 1998, according to a letter the company received in February from the Commerce Department's bureau of industry and security. The letter was disclosed Monday by Sun in a regulatory filing.
Sun said it is in settlement talks. The agency has given the high-powered computer and software maker until Nov. 1 to respond to the accusations.
"We expect to reach a resolution on this, and it will not have a materially adverse effect on Sun," company spokesman Andy Lark said Tuesday.
If Santa Clara-based Sun is found to have violated the regulations, it could face financial penalties or the loss of its export privileges, according to the filing.
Sun said it would defend itself against the charges if the settlement talks fail.
In 1997, Sun sold equipment to a Hong Kong reseller, which later sold the hardware to organizations in China, Lark said. He would not discuss the nature of the equipment.
The Egyptian sale in 1998 involved improper notifications.
A Commerce Department spokesman confirmed an enforcement case was pending against Sun but declined to release additional details.
Sun is a founding member of the Computer Coalition for Responsible Exports, an influential lobbying group that works to ease restrictions on overseas sales of powerful computers.
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