Microsoft Settles Antitrust Suit with Caldera

Microsoft Corp. and Caldera Inc. have reached an agreement to settle their longstanding antitrust lawsuit, the companies said in a statement issued this afternoon.

As a result of the settlement, Microsoft will take a one-time charge against its earnings for the quarter ending March 31, 2000, which will reduce earnings by about 3 cents per share, the company said.

The terms of the settlement, which the companies said are "mutually agreeable," are being kept confidential.

"We are pleased with the result of this lawsuit. We now look forward to vigorous competition in the marketplace with our Linux products and strategies both from Caldera Systems Inc. and Lineo Inc.," Bryan Sparks, Caldera Inc.'s chief executive officer, said in a statement.

Caldera filed its antitrust lawsuit against Microsoft in 1996, claiming that Microsoft illegally used its dominance in the desktop operating system market to squelch competition from DR-DOS, an operating system Caldera purchased from Novell Inc. in 1996. Microsoft has denied the allegations.

The lawsuit was set to go to trial on Feb. 1.

"We are pleased to put this issue behind us," Tom Burt, Microsoft's general counsel for litigation, said in the statement.

Microsoft, in Redmond, Washington, can be reached at +1-425-882-8080 or at http://www.microsoft.com/. Caldera, in Provo, can be reached at +1-801-377-7687 or at http://www.caldera.com/.

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