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Java began in 1991 by a company called Sun. A small team of engineers labelled the "Green Team" (lead by James Gosling) started the project with the aim of creating a programming language for the digital Cable Television industry, but it was too advanced at the time. However, the internet was just starting up around 1995 and the Netscape Navigator Internet browser announced it would incorporate Java in it.
More information can be found at http://www.java.com/en/javahistory/timeline.jsp
References:
http://www.java.com/en/javahistory
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