1 SCO OpenServer™ Growth Strategy Paul Hurford, Product Manager Mart Withers, Marketing Manager

2 Agenda  Company Overview  Introducing ‘Legend’  ‘Legend’ Release Features  SCO Update, Maintenance & Supplements  Project SVR6  SCOx  Update Options  Market Demand  Your Resources

3 Company Overview

4 Lindon, Utah SCOX 350 UNIX ® McDonald’s, Target, BMW, Kroger, Safeway, Nasdaq, Deutsche Bahn $60,000,000+ $130 million 12.2 million $.60 to $14.90 Earned $4 million during Q2 and Debt Free Headquarters Nasdaq Employees IP Assets Sample Customers Annual Sales Market Cap Shares Outstanding 52 Wk Trading Range Financials UNIX is a registered trademark of The Open Group

5 Company Overview SCO’s strength is in simplifying complex IT technologies that enable VARs and developers to deliver cost effective solutions to small-to-medium businesses (SMBs) and branch offices.

6 Mass Merch. Convenience PharmacySupermarkets SCO Addresses Specific Verticals

7 ManufacturingFinanceTelephonySpecialty Retail SCO Addresses Specific Verticals

8 Telecom Apex Voice Communication Conference Call Serv. Telcordia Tech. Wildfire Comms. Systems Finance Abacus Systems Accountix Credit Systems Infonancial Software Open Systems Accounting ParaData Financial Systems Profitmaster Canada Retail ACR Systems Geac Restaurant Systems High Touch ICM Systems Micros Systems Reynolds & Reynolds Master Merchant PCMS Medical American Healthnet Clinical Computing Health Business Systems Health Care Computer Medic Computer Systems Medical Manager PDX Pharmacy Tech Rx Third-Party Applications ‘Made for SCO’

9 SCO’s UNIX Strategy  SCO UNIX products are the backbone of many of the global Fortune 500  Concentrate on core SCO UNIX business  Increase focus on OEM, ISV, and IHV partnerships to provide solutions to our customers  Emphasize SCO UNIX superior integration, reliability, security, and scalability  Extend total cost of ownership advantages  SCOx Web Services and SVR6 extend the SCO UNIX roadmap  Expand professional services and support

10 Introducing ‘Legend’ The code name for the Next SCO OpenServer Release

11 “Hero’s get Remembered But Legends never die” The Sandlot, The Babe (Art LaFleur)

12 Legend Design Considerations We Studied Failed Designs Really BAD Attempts To Fix failed Designs

13 Legend Design Considerations Innovative Designs

14 Legend Design Considerations Rugged Designs

15 Legend Design Considerations But we really wanted a design that would BLOW Away any past release of OpenServer

16 Legend Design Considerations

17 Legend – The Next Release of SCO OpenServer  Increased investment in SCO’s highest revenue generating product  Maintain rock-solid stability  Massively extended to become an SVR6 Operating Environment  Focused and targeted at new application and hardware support  Meet today’s and tomorrow’s growing business demands

18 ‘Legend’ Release Features

19 ‘ Legend’ Release The Road to Calendar Quarters Q1 ‘03 Q2 ‘03Q3 ‘03Q4 ‘03 Q2 ‘04Q1 ‘04 Q1 ‘05 Q2 ‘05Q3 ‘05Q4 ‘05 Q4 ‘04Q3 ‘04 ‘ Legend’ Beta Forum 2004 Update Supplement CD #1 Update Supplement CD #2 Legend Update 1 Legend Update 2 Legend Supplement CD #1 OpenServer Maintenance Pack 1 Update 1 Update Supplement CD #3 Potential Maintenance Pack 2

20 Legend – The Next Release of SCO OpenServer  Hardware support  Security  Database, Java ®, and Application support  Web

21 Legend – Hardware Feature Set  USB Printer support  Internet Printing Protocol support (CUPS)  Many new printer drivers  New and updated HBAs (lsil, slha, ad320)  Enhanced SATA support  Katmai & Prescot multimedia instruction set support  Support for more than 2 IDE controllers  Full ACPI support  BTLD from CD-ROM  BTLD with native UDI drivers  Pro DVD Record  Joliet CDFS support  Greater than 4Ghz CPU support

22 Legend – Security Feature Set  IPsec – Internet Protocol Security  VPN – Virtual Private Network  PAM + NSS (Pluggable Authentication Modules + Name Service Switch)

23 Legend – Database, Java and Application Support Our Goals for Legend are Clear  Kernel-level threads  User-level threads  Large file support (greater than 2GB)  MySQL

24 Legend – Web Feature Set Complete reliable Web Support  Apache 2  Java 1.4  Mozilla 1.x  Java plug-in for Mozilla

25 Legend – Infrastructure Feature Set  Native port of the UnixWare ® compiler  GCC 3  Optimized for latest Pentium ® CPUs  BIND 9 with h2n for easy configuration  Termcap entries for UnixWare 7 and Linux  Improved Windows ® compatibility

26 SCO Update Information & Release Schedule

27 Update Options For SCO OpenServer Releases  Purchase SCO Update bundled with the OS (15% additional)  Purchase SCO Update as a standalone product (20% additional)

28 Update Options - Definitions  Supplement Release -  Update Pack # - A license for the next full OS release with new features delivered in 3 – 4 month increments  Maintenance Pack # - A Free package of updated device drivers, bug fixes, etc.  Stand alone package updates - A Free package of the latest standalone Open Source packages, BTLDs, etc.

29 SCO OpenServer Update Pack 1 Released on Web July 30, 2003  Hyper-threading support  Large ATA disk support (greater than 137GB)  Install to root partitions above 1024 cylinders  New shells: bash, zsh, tcsh

30 SCO OpenServer Maintenance Pack 1 Released on Web July 30, 2003  Software Manager supports SCO Update  Intel ® PRO/1000 PCI Ethernet adapters  NVIDIA ® RIVA TNT2, Vanta, and GeForce chipset-based video adapters  Graphics, Web and X11 library enhancements  Perl with new XML components  Apache

31 SCO OpenServer Supplement CD Scheduled for September 2003  Update Pack 1  Maintenance Pack 1  Adaptec Ultra320 (ad320) driver  Enhanced IDE (wd) driver  Java 1.3.1_08  Samba 2.2.8

32 SCO OpenServer Update Pack 2 Scheduled for a November 2003 release  Feature Candidates  Internet Printing Protocol support (CUPS) — Network printer support  DNS Parser (h2n) — Easy configuration of DNS  Serial ATA Assurance Testing — Ensure legacy Serial ATA is supported  Katmai New Instructions (KNI) support — Allow applications to take advantage of the extended multi-media instructions

33 SCO OpenServer Update Pack 3 Scheduled for a March 2004 release  Feature Candidates  USB printer support — Needed for POS printers, etc.  Support for more than 2 IDE controllers — Common customer request for more storage devices  SCOadmin FTP Manager — Graphical administration of FTP server  BIND 9 — With h2n for easy configuration  Posix-compliant user-level threads library — Supplemented with full kernel threads in Legend release  ProDVD Record — Ability to write to DVDs  Joliet CD filesystem — Additional industry standard CD format

34 SCO OpenServer Update Pack 4 Scheduled for a July 2004 release  Feature Candidates  Large file support (greater than 2GB)  gimp-print  GCC 3  Samba 3  Apache 2  Java 1.4  32-bit FAT support  PAM/NSS  IPsec  VPN  MySQL

35 SCO OpenServer Legend Baseline Release Scheduled for an October 2004 release  Traditional OS and new SVR6 OE Editions  Kernel threads  Optimized for latest Pentium CPUs  Full ACPI support  Greater than 4Ghz CPU support  Rollup of Update Packs 1, 2, 3 and 4

36 Project SVR6

37 System V Release 6  The next generation of platform technology from SCO  The first truly complete operating environment from device support to middleware  Powered by the same UNIX operating system technology you know and trust “The real future of UNIX ® isn’t the operating system, but the stack of services and applications that runs atop it.” David Coursey

38 SVR6 Operating Environment Summary  Based around existing SCO operating systems  Provides core management and middleware services  Provides a suite of horizontal solutions to allow for server consolidation opportunities  Contains an environment allowing the development of next-generation clustered Web applications  Integrates and plays well with existing Microsoft ® networks  Unrivaled and expanded security  Provides a friendly graphical look and feel for both users and administrators that follows modern desktop OS paradigms

39 SCOx SCOx Web Services Grow Your Business

40 The SCOx Strategy Building Technology and Programs that enable companies to grow their business, connect to customers, and integrate with suppliers using specialized Web services.

41 A framework that enables, expands and extends your business through Web services SCOx enables the cost-effective implementation of complex technologies  Delivers best-of-breed business applications and online services SCOx expands the reach of solution providers to a broader market  Allows partners and developers to work with existing and future applications SCOx extends the functionality of applications to the Web  Resides in a hybrid environment – online, onsite or both SCOx Web Service Solutions Grow your Business!

42 Market Demand

43 Marketing Initiatives  Highly Qualified Leads  Ready-to-use Templates and Campaigns  City-to-City Tour  Product Web Seminars  Solutions Focus  Success Stories  Upgrade Campaign  Vendor Recruitment  Vertical Markets

44 Your Resources

45 Contact Information  Paul Hurford Product Manager  Mart Withers Marketing Manager

46 More Information  Brochure  Compatible Hardware  Letter from SCO CEO  New Features  Software Downloads  Success Stories  Third-Party Applications SCO-UNIX

47 Other Sessions  “Birds of a Feather” Monday, 8:30 PM Room #203  “Leveraging the Strengths of UnixWare and OpenServer” Tuesday, 1:30 PM and 2:45 PM Room #303

48 Thank You for Your Participation

49 The Road to ‘ Legend’  OpenServer – Feb 21, 2003  Update Pack 1 - July 30, 2003  Maintenance Pack 1 - July 30, 2003  Supplement CD - August 29, 2003  Update Pack 2 - November 2003  Update Pack 3 - March 2004  Maintenance Pack 2 - March, 2004  Update Pack 4 - July, 2004  Legend Beta - Forum 2004  Legend Release - October 2004  Legend UP-1 - February, 2005  Legend MP-1 - February, 2005  Legend Supplement 1 - Mar, 2005  Legend UP-2 - July, 2005  Legend UP-3 - October, 2005  Follow-on Release to Legend baseline