Tuesday November 2, 9:39 am Eastern Time
Company Press Release
GraphOn Corp. 'GOJO' Forms Strategic Alliances to Offer Chinese Private Enterprise, Government and Education Speedy Migration to Linux, Server-based Computing Faced with Forced Updates of Aging Hardware -- Linux Seen as the Way Out
CAMPBELL, Calif.--(BUSINESS WIRE)--Nov. 2, 1999-- GraphOn Corporation, (Nasdaq:GOJO - news; www.graphon.com), a Silicon Valley web-enabling software company, today announced it has established alliances that it believes will afford millions of users throughout China Internet and network access to powerful server-based applications and speed adoption of Linux® as China's operating system of choice. GraphOn(TM) Bridges(TM) software is highly scalable and capable of delivering server-based Linux, UNIX® and Windows® applications, without changing a single line of the applications' code, to anyone with a PC or computing device over virtually any connection, such as a local area network, the Internet or dial-up access to the server. It is the sole thin client software technology suite that can deliver Linux, UNIX and Windows applications from centrally managed servers to China's vast installed base of aging Windows PCs.
GraphOn has entered into a memorandum of understanding for a licensing and distribution arrangement with Minmetals Townlord Information Technology, Inc., specialists in information technology for education. Minmetals is a fast growing Chinese hi-tech startup formed at the end of 1998 and is an acknowledged leader in China in the application of multimedia information technology to the educational field. GraphOn has also entered into a letter of intent calling for the establishment of a joint venture with Sundiro, a Hainan-based information industry and security software provider. Sundiro develops and provides a family of secure products on Internet, intranet, WAN and LAN. With 20 branch offices, Sundiro distributes its products through China and in California's Silicon Valley.
The marketing and distribution forces of GraphOn, Minmetals and Sundiro will undertake the introduction of server-based computing in China, first seeking to penetrate the Chinese education market. Initial use of GraphOn Bridges is expected to begin in November 1999 at the Beijing Concord College of Sino-Canada, a 1500-student Beijing-based private school serving grades 10 through college. If successful, Chinese private enterprise and government sectors may be expected to follow, assuming their recognition of this expedient way to diversify operating systems and centralize application deployment. The Chinese market price for GraphOn software, which sells for approximately $200 per seat in the United States, has not as yet been determined.
Subsequent implementation goals envisioned by GraphOn and its Chinese strategic partners include 100 schools to be upgraded in the next few months with GraphOn software, an additional 1000 schools by the end of the year 2000 in addition to an expansion of Beijing Concord College campuses. However, there can be no assurances that these goals can be achieved or that GraphOn's Chinese alliances will result in meaningful sales in the near term future or otherwise.
Indicating the need to implement server-based computing rapidly, Beijing Concord Colleges Chairman, Francis Pang, stated, ''GraphOn Bridges technology offers a means to rapidly deliver Linux, UNIX and Windows applications to more than five million students in the next three years.'' Mr. Pang also said he plans to use Sundiro's security and authentication software with GraphOn's delivery technology in the Beijing Concord school program, which will extend the server-based curriculum far beyond the Beijing campus over the Internet and intranet connections. Mr. Pang spoke of China's need to deploy the latest applications to large numbers of users, beginning with the education sector, which consists of up to 260 million students across China in grades K through college.
''We see thin client, server-based computing as the path to network our many older PCs while playing a key role in a post PC connectivity strategy.'' Mr. Pang lamented the long wait for localized Chinese versions of popular software and the continuing demands that new generations of Windows software place on hardware, resulting in unacceptable levels of obsolescence.
Zhicheng Yang, Ph.D., general manager of Sundiro, said, ''We anticipate GraphOn's operating system-neutral architecture will afford Chinese PC users the flexibility to use both old and new technology. This freedom enables us to be productive today while spawning a native Chinese IT community that will be able to develop future applications that reflect China's own culture.'' Because of its negligible demand on server-connected desktop PCs, GraphOn Bridges software can enable China's millions of dated Windows PCs to access any server-based Linux, UNIX or Windows application over any connection.
''We are extremely pleased to offer a solution for China that will accelerate their ability to build an application delivery infrastructure,'' said Walt Keller GraphOn CEO and president. ''The flexibility and scalability of our software gives the Chinese installed PC base the greatest latitude in selecting the software and hardware options that best suit their diverse needs.''
China has already made great strides in building a wireless infrastructure that can quickly network schools, government and the private sector. ''The Internet is the great delivery vehicle that will instantly make large groups of users smarter and more productive,'' said Li Chunguang, managing director of Minmetals Townlord Information Technology Co. ''We are particularly interested in the future of server-based computing such as the architecture GraphOn offers, which will help us deploy multimedia data to end users and avoid local installation problems while centrally controlling the software application itself. No longer is desktop-by-desktop installation and management necessary.''
About Minmetals Townlord Information Technology Co.
Minmetals Development Co. Ltd., a public Chinese company listed on Shanghai Stock Exchange since May 1997, has a 60% controlling stake in Minmetals Townlord with the rest owned by its technical staff. The key technologies developed by Minmetals Townlord fall into three areas, namely multimedia data compressing and decompressing technology, multimedia transfer technology and multimedia database technology. It is now at the cutting edge of developing software solutions that enable the real time transfer of multimedia data, including video, audio and text, via the Internet taking advantage of a wide range of hardware environments. This technology has enabled the firm to provide economical network software solutions tailored to Chinese primary and middle schools whose effort to network has previously been hampered by their inability to take advantage of their old PCs. By now, the firm is also positioned to provide such solutions to government organizations, military service and the private sector enterprises. Its leading products are IP/TV Technology and Townlord 2000 Campus Network Integrated Solution.
About Sundiro
Sundiro Information Industry Ltd., with headquarters in Hainan Island of P. R. of China, is a leading developer of information security software products. Sundiro is a newcomer in the IT industry, but its business has been developing very rapidly. The products include SSWS (Sundiro Secure Web Server), Skey, SDAC (Secure Directory Access Control), Web-office, and Web-Sale.
SSWS is a strong secure developing platform on Internet application with Sundiro's cipher. Of course, any other cipher can be very easy built in SSWS. Skey is a secure key that is inserted in the USB port to control client access to the server over Internet, Intranet, WAN or LAN. SDAC is a strong two-factor authentication system based on CHAP in which the challenge is a non-reusable random. SDAC is combined with Skey effectively, and also can be combined with any other smart card or token. Sundiro is aggressively marketing to position itself among the giants in the IT world. For more information, website: www.sundiro.com.cn, email: zcyang@sundiro.com.cn; telephone: (86) 898/8539012; fax: (86) 898/8560758.
About GraphOn
GraphOn develops and markets thin, server-based software to speed, centralize and simplify enterprise computing and enable efficient network deployment of applications to a wide variety of devices and platforms. GraphOn products will be unified under the Bridges name and include the components UNIXBridge and LinuxBridge, formerly the GlobalHost Universal X Server of GO-Global, first thin client X server for Windows PCs, GO-Joe, the first thin client X server for Java-enabled desktops (including web browsers), and GO-Between, the first thin client X server for multi-user NT (such as Microsoft Terminal Server and Citrix WinFrame). Also being added to Bridges is WinBridge, formerly codenamed jBridge, which enables deployment of 32-bit Windows applications over the Internet and is scheduled for general release late 1999. Fully functional demos of GraphOn's products are available from the company's web site at graphon.com. GraphOn is headquartered in Campbell, California and has offices in Seattle, Washington, Concord, New Hampshire, and Reading, UK. Investors can obtain financial and corporate information at www.sec.gov under GraphOn Corporation's CIK No. 0001021435.
This press release contains statements that are forward looking as that term is defined by the United States Private Securities Litigation Reform Act of 1995. These statements are based on current expectations that are subject to risks and uncertainties. Actual results will differ due to factors such as shifts in customer demand, product shipment schedules, product mix, competitive products and pricing, technological shifts and other variables. Readers are referred to GraphOn's most recent reports filed with the Securities and Exchange Commission.
GraphOn, Bridges, GO-Joe, GO-Global, GO-Between, and jBridge are trademarks or registered trademarks of GraphOn Corp.
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Contact:
GraphOn Corporation
Rusty Keller, 1-800/GRAPHON
rusty.keller@graphon.com
graphon.com
or
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Pat Meier, 415/392-4200
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