Recent SCO/Linux News

From: Laura Sexton <mdopp@schwartz-pr.com>
Subject: Significant SCO Announcement Regarding UNIX IP 
Date: Sun, 22 Jun 2003 23:31:50 GMT

SCO SUSPENDS DISTRIBUTION OF LINUX PENDING INTELLECTUAL
PROPERTY CLARIFICATION; ANNOUNCES GREATER FOCUS ON UNIX
AND SCOx STRATEGY

SCO suspends sales of Linux, alerts customers that Linux is an unauthorized
derivative of UNIX and that legal liability may extend to commercial users. SCO
reaffirms commitment to SCOx, SCOs growth strategy through Web services.

LINDON, Utah-May 14, 2003-The SCO. Group (SCO)(Nasdaq: SCOX), the owner 
of the UNIX operating system, today warned that Linux is an unauthorized derivative
of UNIX and that legal liability for the use of Linux may extend to commercial users.
SCO issued this alert based on its findings of illegal inclusions of SCO UNIX intellectual 
property in Linux. The company also indicated that until the attendant risks with Linux 
are better understood and properly resolved, the company will suspend all of its future 
sales of the Linux operating system.  

"SCO is taking this important step because there are intellectual property issues with 
Linux," said Chris Sontag, senior vice president and general manager of SCOsource,
The SCO Group. "When SCOs own UNIX software code is being illegally copied into 
Linux, we believe we have an obligation to educate commercial users of the potential 
liability that could rest with them for using such software to run their business. We
feel so strongly about this issue that we are suspending sales and distribution of SCO
Linux until these issues are resolved."   

SCO will continue to support existing SCO Linux and Caldera OpenLinux customers and 
hold them harmless from any SCO intellectual property issues regarding SCO Linux and 
Caldera OpenLinux products. 

Going forward, SCO will have a stronger focus on UNIX and the companys growth 
strategy around Web services, SCOx. The company introduced SCOx in April as the 
companys Web services framework and plans to introduce new Web services 
applications from third party developers in August at SCO Forum, the companys annual 
conference.   

"SCO remains committed to servicing our customers and as such, we intend to continue 
our growth strategy around SCOx-the Web services framework for small-to-medium 
businesses and branch offices," said Darl McBride, president and CEO, The SCO Group.  

In a separate announcement released today, SCO gave guidance on expected results for 
its 2nd fiscal quarter. The company expects to report net income of $4.0 million on 
revenue of $21 million. 

In addition, SCO today also posted an analyst report from Gartner to their Web site at 
www.sco.com/scosource entitled, "SCO Lawsuit Sends a Warning to Linux IS Shops." 
The executive summary of the report asks whether Linux is safe from encumbrances. 

About The SCO Group
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 all 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 Caldera
International, Inc. in the U.S. and other countries. UNIX, used under an exclusive license,
is a registered trademark of The Open Group in the United States and other countries. Linux
is a registered trademark of Linus Torvalds. All other brand or product names are or may be
trademarks of their respective owners.


Contact:

Blake Stowell/Paul Hatch
The SCO Group
bstowell@sco.com or phatch@sco.com
Tel:  (801) 932-5703 or  (801) 932-5811
www.sco.com

Dave Close/Avi Dines
Schwartz Communications
sco@schwartz-pr.com 
Tel:  (781) 684-0770

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