Recent SCO/Linux News

From: Laura Sexton <mdopp@schwartz-pr.com>
Subject: SCO Terminates IBM's Right To Use and Distribute AIX
Date: Mon, 16 Jun 2003 19:49:12 GMT

SCO. ANNOUNCES IMMEDIATE TERMINATION OF IBMS RIGHT TO USE
AND DISTRIBUTE AIX SOFTWARE AND FILES FOR PERMANENT INJUNCTION

SCO terminates IBMs right to use or distribute AIX software, and files amended complaint 
against IBM, including a permanent injunction against IBM for destruction or return of all 
copies of UNIX. System V Source Code and permanent cessation of AIX distribution

LINDON, Utah-June 16, 2003-The SCO. Group (SCO)(Nasdaq: SCOX), a leading provider 
of business software solutions, today announced that it has terminated IBMs right to use or 
distribute any software product that is a modification of or based on UNIX. System V source 
code. In terminating IBMs right to use and distribute AIX, SCO is exercising the right of 
termination granted under the original 1985 UNIX Software and Sublicensing Agreements 
between IBM and AT&T. SCO notified IBM on March 6, 2003 that it intended to terminate in 
100 days, as required under the Software Agreement, as modified by a side letter, if IBM
did not correct certain actions that violate the agreement. As of the deadline - 12:00
midnight, June 13, 2003 - IBM had not complied with SCOs request, which triggered the
termination. The termination is self-effectuating.

"The Software and Sublicensing Agreements and related agreements that SCO has with IBM 
includes clear provisions that deal with the protection of source code, derivative works and 
methods," said Mark J. Heise, Boies Schiller, & Flexner, LLP. "Through contributing AIX 
source code to Linux and using UNIX methods to accelerate and improve Linux as a free 
operating system, with the resulting destruction of UNIX, IBM has clearly demonstrated its 
misuse of UNIX source code and has violated the terms of its contract with SCO. SCO has the 
right to terminate IBMs right to use and distribute AIX. Today AIX is an unauthorized 
derivative of the UNIX System V operating system source code and its users are, as of this date, 
using AIX without a valid basis to do so."

SCO is also today filing an amendment to the complaint against IBM for a permanent injunction 
requiring IBM to cease and desist all use and distribution of AIX and to destroy or return all 
copies of UNIX System V source code. In the amended complaint, SCO is seeking additional 
damages from IBMs multi-billion dollar AIX-related businesses that began accruing Friday, 
June 13th at midnight. This amended complaint was filed today with the United States District 
Court of Utah where SCOs court case against IBM is currently pending.  

"IBM has chosen to continue the actions that violate our source code and distribution 
agreements," said Darl McBride, President and CEO of The SCO Group. "Over the last several 
months, SCO has taken all of the steps outlined in the UNIX licensing agreements to protect its 
rights. Today SCO is requesting that the court enforce its rights with a permanent injunction. 
IBM no longer has the authority to sell or distribute AIX and customers no longer have the right 
to use AIX software." 


About SCO
The SCO Group (NASDAQ:  SCOX) helps millions of customers in more than 82 countries to grow
their businesses everyday. Headquartered in Lindon, Utah, SCO has a worldwide network of more
than 11,000 resellers and 8,000 developers. SCO Global Services provides reliable localized
support and services to partners and customers. For more information on SCO products and
services, visit http://www.sco.com.

SCO, and the associated SCO logo are trademarks or registered trademarks of The SCO Group, Inc.
in the U.S. and other countries. UNIX is a registered trademark of The Open Group. All other
brand or product names are or may be trademarks of, and are used to identify products or
services of, their respective owners.


Contact:
Blake Stowell
The SCO Group
bstowell@sco.com
Tel:  (801) 932-5811
www.sco.com 

David Close/Laura Sexton
Schwartz Communications
sco@schwartz-pr.com
Tel:  (781) 684-0770

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