Sun Microsystems lost millions of pounds in last year's collapse of UKeU, the government's flagship elearning project.

Leslie Stretch, Sun UK managing director, told the Education and Skills Committee investigation into UKeU last week that the supplier initially invested £5.5 million in the venture.

In addition, Sun's platform delivery contract increased from £9.65m to about £11.7m in July 2002.

Sun invoiced UKeU as each module of the learning platform was deployed but millions of pounds worth of invoices remained outstanding.

'The headline for me is that we sit here today with substantial losses from the venture,' said Stretch.

For more analysis on UKeU and Sun, see link below.