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MTI Technology Signs Letter of Intent to Acquirean Equity Interest in Caldera Systems
ANAHEIM, Calif., March 1 /PRNewswire/ -- MTI Technology Corp. (Nasdaq: MTIC) today announced that is has signed a non-binding letter of intent to purchase up to a 20 percent equity interest in Caldera Systems, Inc., subject to the completion of a due diligence review, approval by each company's board of directors, and the negotiation of the definitive agreement. Caldera, a premier provider of the Linux operating system for business, is headquartered in Orem, Utah.
This relationship between MTI and Caldera would provide several key benefits to MTI and is important in supporting the company's strategic direction:
-- MTI intends to add support for Linux in future product offerings to
complement the company's cross-platform strategy that currently
includes support for Windows NT and major UNIX-based platforms. In
turn, MTI's expertise in developing and marketing high-availability
storage solutions would help advance Linux as an alternative
operating system for mission-critical applications.
-- MTI would be able to leverage its service and support resources to
meet the consulting, service and support needs of the growing Linux
market.
-- MTI plans to use Linux as a foundation for developing advanced
storage technologies and products, which could include products
designed to provide support for HTTP, remote mirroring, clustering
and file services such as NFS and AFS.
"Caldera Systems is one of the premier providers of Linux for business environments and has demonstrated that is possesses the necessary technological resources and ability for porting various applications to the Linux operating system," said Earl Pearlman, president and chief executive officer of MTI.
"This investment in Caldera is intended to allow MTI to better execute these strategies in a more timely manner by affording MTI increased access to Caldera's technical expertise, and complete training and support capabilities.
"Of particular importance in our decision to make this investment is the current acceptance and use of Linux by Internet-based businesses, which view Linux as a stable and flexible operating system for deploying certain e-commerce applications. MTI has specifically targeted the rapidly growing Internet-related and e-commerce business segment, which has become the fastest growing market for the company's data storage products. We believe that as Linux-based applications and products continue to grow in number and capability, the Linux operating system will move from its current role to become a major alternative operating system for high-availability, mission- critical applications that require scalable, high-performance data servers and storage solutions. Caldera's technical expertise, in conjunction with its additional development and testing resources, would better enable MTI to take advantage of these developing opportunities," said Pearlman.
About Caldera Systems Inc.
Caldera Systems Inc. is the Linux for business technology leader in designing, developing and marketing Linux-based business solutions including OpenLinux, NetWare for Linux, technical training, certification and support. Caldera Systems can be reached at 888-GO-Linux (888-465-4689), via e-mail at linux@calderasystems.com or at the Caldera Systems website at calderasystems.com.
About MTI Technology Corp.
MTI's mission is to be the premier provider of high-performance, cross- platform data storage management solutions for the enterprise. MTI integrates distributed data management software, a hierarchy of modular storage systems and on-site services to meet the mass storage needs of its customers. Headquartered in Anaheim, Calif., the company offers services and support from more than 40 offices in the U.S. and Europe. Authorized distributors provide additional sales and service capabilities in Latin America and Asia/Pacific regions. MTI may be reached by phone: 800-999-9MTI or 714-970-0300, fax: 714-693-2256 or e-mail: info@mti.com. Information can also be accessed via MTI Online, the company's World Wide Web server on the Internet at: mti.com.
This press release includes forward-looking statements, including statements regarding the potential equity investment in Caldera, the company's product and service development plans, and the growth of the Linux market, which are subject to change. The actual results may differ materially from those described in any forward-looking statement. There can be no assurance that the proposed equity investment in Caldera will be consummated, that the investment in Caldera will afford MTI increased access to Caldera's resources, that the Linux market will continue to grow, or that MTI will develop Linux products or services. Important factors that may cause actual results to differ are set forth in the company's periodic filings with the U.S. Securities and Exchange Commission including its Form 10-K for the year ended April 4, 1998.
MTI is a registered trademark of MTI Technology Corp. Caldera Systems, Inc. is a registered trademark and OpenLinux is a trademark of Caldera Systems, Inc. All other company, brand or product names are registered trademarks or trademarks of their respective holders.
SOURCE MTI Technology Corp.
CO: MTI Technology Corp.; Caldera Systems, Inc.
ST: California, Utah
IN: CPR
SU: TNM
03/01/99 08:00 EST prnewswire.com
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