Recent SCO/Linux News

From: Jan Tarzia <jant@caldera.com>
Subject: SCO Raises $13.1 Million in Cash
Date: Thu, 14 Sep 2000 16:13:09 GMT

FOR IMMEDIATE RELEASE

  CONTACTS:
Lynn Schroeder          Randy Bresee            Tony Baines             Jan Tarzia
Investor Relations      CFO                     Corp. Communications    Public Relations
Tel: 831-427-7399       Tel: 831-427-7661       Tel: +44-836-724414     Tel: 831-427-7221
lynnsc@caldera.com      randy@caldera.com       tonyb@caldera.com       jant@caldera.com

SCO RAISES $13.1 MILLION IN CASH

Private Placement Financing Provides Investment in Tarantella Expansion

Santa Cruz, CA (September 13, 2000) - The Santa Cruz Operation, Inc. (SCO) 
(Nasdaq: SCOC) today announced it has reached an agreement for the private 
placement of common stock and warrants, worth $13.1 million. The agreement 
was facilitated by Security Research Associates, Inc., and represents a 
total purchase of 3,275,000 shares.

The financing provides continued investment for developing the SCO 
Tarantella business, which provides web-enabling software that connects 
clients and server-based applications over the Internet.

"These additional funds support the expansion of Tarantella efforts, and 
place us in a much stronger position to capitalize on our technology lead 
and meet our projected growth," said Mike Orr, president of the SCO 
Tarantella division. "This growth is fueled by the increasing business use 
of the Internet, the attractiveness of thin-client computing, the need to 
web-enable legacy applications, and the accelerating adoption of the ASP 
business model."

Brian Swift, CEO of Security Research Associates, Inc. commented, "We view 
Tarantella web-enabling software as particularly unique in the industry, 
and are pleased to be able to provide, through our institutional investors, 
some additional working capital to assist the company in gaining continued 
market acceptance of their product."

Details of the Agreement
Under terms of the agreement, SCO will receive $13.1 million in cash, in 
exchange for 409,375 units valued at $32 each. Each unit sold in the 
private placement consists of eight shares of SCO common stock, plus 
warrants exercisable for either two shares of SCO common stock at $4 each 
or one share of the common stock of Caldera, Inc. valued at $8. The 
warrants for Caldera shares refer to shares that will be owned by SCO, 
subject to completion of the acquisition of the SCO Server Software and 
Professional Services divisions by Caldera Systems, which is pending 
shareholder and regulatory approval. The total number of SCO warrants 
exercisable in the transaction represent 818,750 shares of SCO common stock 
or 409,375 shares of Caldera, Inc. common stock.

Under the terms of the private placement, SCO is obligated to file a 
registration statement to register the shares and warrants within 60 days.

Also previously announced and pending shareholder approval is a name change 
from The Santa Cruz Operation, Inc. to Tarantella, Inc.

Safe Harbor Statement:
This press release contains forward-looking statements about growth of 
market share and of the company's business and products.  Investors are 
cautioned that all forward-looking statements involve risks and 
uncertainty, including without limitation, increases and decreases in the 
value of investments, the ability to reduce expenses, impact and success of 
joint development projects and industry partnerships, conclusion or success 
of strategic opportunities, market acceptance of new products, the impact 
of competitive products, general market conditions, and other risks 
detailed from time to time in SCO's SEC filings, including forms 10-Q and 
10-K. SCO disclaims any intention or obligation to publicly update or 
revise any forward-looking statements, whether as a result of events or 
circumstances after the date hereof or to reflect the occurrence of 
unanticipated events.

About The Santa Cruz Operation, Inc.
With headquarters in Santa Cruz, CA, The Santa Cruz Operation, Inc. is 
comprised of three independent divisions -Tarantella, Inc., the Server 
Software Division, and the Professional Services Division. The three 
divisions sell and support their products and services through a worldwide 
network of distributors, resellers, systems integrators, and OEMs. For more 
information, see www.scoinc.com.

About Tarantella
Tarantella, Inc. is a wholly-owned subsidiary of The Santa Cruz Operation, 
Inc., which provides technologies connecting clients, server-based 
applications, and networks. The Tarantella product line includes Tarantella 
Enterprise II for large companies and organizations, Tarantella Express for 
workgroup and departmental environments, and Tarantella ASP Edition for 
Application Service Providers. Tarantella products are available today for 
all popular RISC and Intel processor-based UNIX servers and selected Linux 
servers. For more information, see www.tarantella.com.

###

SCO, The Santa Cruz Operation, the SCO logo, Tarantella, Express, and the 
Tarantella logo are trademarks or registered trademarks of The Santa Cruz 
Operation, Inc. in the USA and other countries.  UNIX is a registered 
trademark of The Open Group in the United States and other 
countries.  Linux is a registered trademark of Linus Torvalds in the United 
States and other countries.. All other brand or product names are or may be 
trademarks of, and are used to identify products or services of, their 
respective owners
--------------------
Jan Tarzia
Manager, Public Relations
The Santa Cruz Operation, Inc.
Tel:  831-427-7221
Fax:  831-427-5418
Email:  jant@caldera.com
www.caldera.com
--------------------
 

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