Dell, Motorola, Sun Up Stakes in Linuxcare

BOSTON (08/02/2000) - Linuxcare Inc. Wednesday announced the completion of its third round of funding to the tune of US$30 million. Existing investors, including Dell Computer Corp., Motorola Inc. and Sun Microsystems Inc., all increased their share holdings in the Linux services company in the financing round.

Among the new investors in the Linux services provider is Itochu International Inc., the U.S. arm of Japanese trading giant Itochu Corp., Linuxcare said in a statement.

The $30 million funding is expected to boost Linuxcare's service offerings in the heavily competitive open-source Linux market, the company said in the statement.

Linuxcare experienced some rough times earlier this year, announcing both job cuts and the cancellation of its planned IPO (initial public offering) on the Nasdaq stock exchange in May. [See "Linuxcare Announces Layoffs," May 4 and "Linuxcare Shies from Renewing IPO Plan," May 3.]The firm's second round of funding took place in December of last year and netted the company a cash injection of $32.5 million from investors. [See "Linuxcare Plots Aggressive Global Expansion," Dec. 15, 1999.]Linuxcare Wednesday also announced a pact with Compaq Computer Corp. to provide CDs (compact discs) to help simplify Linux installations on computers based on Compaq's 64-bit Alpha microprocessor.

Developed for both new and experienced Linux users, the CD program, known as Linux Jumpstart, uses a GUI (graphical user interface) to assist installations of the open-source operating system, in addition to repairing damaged installations, Linuxcare said. Users can also boot up Linux directly from the CD. The CD supports most popular Linux distributions, including Red Hat Inc.

Linux and Debian Linux, according to Linuxcare.

The Linux Jumpstart CD can be obtained free of charge from Compaq at http://www.linuxalpha.compaq.com/jumpstart/.

Linuxcare, based in San Francisco, can be reached at +1-415-354-4878 or via the Internet at http://www.linuxcare.com/.

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