1 SCOsource

2 Announcing the creation of… A new organization in SCO with the charter to create new licensing programs for our UNIX intellectual property

3 SCO’s History The invention of UNIX at Bell Labs SCO establishes UNIX on Intel Unix Systems Laboratories source code and UnixWare acquired by SCO in 1995 Merges with SCO in 2001 Develops UNIX derivatives Xenix, OpenServer, bringing UNIX to the Intel volume market and setting the stage for Linux 1994 Caldera established to develop commercial Linux distribution SCO establishes SCOsource

4 UNIX History Click on a section of the chart to see an enlarged view UnixWare ® OpenServer ® Linux ® The SCO Group Pedigree of Intellectual Property UNIX History Chart Copyright © Eric Levenez

5 Why license SCO’s Intellectual Property?  Customers are requesting it  Increase shareholder value through existing IP  Strengthen Linux by licensing value-add IP  Increase UNIX application use on Linux

6 First Deliverable  SCO’s Shared UNIX Libraries from OpenServer and UnixWare for use with Linux  Already in use among many enterprise customers  Already encouraged by many Linux vendors  Increases the number of UNIX applications available to Linux Upcoming Plans for SCOsource SCO System V for Linux

7 How UNIX Applications run on UNIX using SCO Shared Libraries In the late 1980s, SCO created an open specification called ibcs2 (Intel Binary Compatibility Standard) to allow UNIX applications to run on Intel standard hardware using SCO’s shared libraries. These shared libraries include SVR3.x - SVR5.

8 Because ibcs2 is an open specification, the Linux community was able to freely copy this and rename it Linux ABI or Linux Application Binary Interface. In order to run UNIX apps on Linux, customers must have Linux ABI and SCO’s shared libraries. SCO’s shared libraries could never be licensed outside of the SCO operating systems until today. How UNIX Applications run on Linux using SCO Shared Libraries

9 How have customers previously gained these libraries? Software Vendors Copying SCO shared libraries for use with Linux OS Example: Professional Services Organizations The Internet Message boards, knowledge bases, FTP sites Example:

10 Licensing of SCO System V for Linux Customer Pricing: $149 per CPU Volume pricing available at standard SCO discounts Current and future SCO Linux Server 4.0 customers can obtain a SCO System V for Linux license at no charge for use on SCO Linux

11 Protection of SCO’s Intellectual Property  SCO has retained Boies, Schiller and Flexner to assist with:  the interpretation of intellectual property, patent and copyright law  identification of violations of that law  resolution of those violations

12 For more information on SCOsource & SCO System V for Linux SCO will sell SCO System V for Linux through SCO’s Major Account Sales force and through SCO’s Reseller Channel Contact SCO Toll free or To license SCO System V for Linux SCO-UNIX or