Caldera to Buy SCO Server and Service Units

PARIS (08/02/2000) - Linux developer Caldera Systems Inc. is to acquire the server software and professional services divisions of The Santa Cruz Operation Inc. (SCO), a provider of Unix operating systems, the companies announced today.

Under the terms of the agreement, which is subject to the approval of regulators and shareholders of both companies, Caldera will form a new company, Caldera Inc., to acquire the SCO divisions. SCO will receive 28 percent of Caldera Inc., or an estimated 17.54 million shares of Caldera stock and US$7 million in cash, the companies said. They expect to close the deal in October.

The new company will have exclusive distribution rights for SCO's OpenServer products, while SCO will retain its Tarantella cross-platform middleware division and the SCO OpenServer revenue stream and intellectual property.

Caldera Inc. will provide "open access to its unified Linux and Unix technologies," according to Ransom Love, president and chief executive officer (CEO) of Caldera Systems Inc. The new venture will combine the two technologies to create a single, open Internet platform, the two companies said.

Love will become CEO of Caldera Inc., while David McCrabb, president of the SCO Server Software Division, will become president and chief operating officer of Caldera Inc.

Caldera Systems Inc., in Orem, Utah, can be reached at +1-801-765-4999 or found on the Web at http://www.calderasystems.com/. SCO, in Santa Cruz, California, can be reached at +1-831-425-7222 or found on the Web at http://www.sco.com/.

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