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To: Diamond Jim who wrote (77433)	3/31/1999 11:11:00 PM
From: Diamond Jim	Read Replies (1) \| Respond to of 186894

Massive Growth Potential SCO: SCO leads Intel based systems into appliance server market MAR 31, 1999, M2 Communications - SANTA CRUZ, CA -- SCO (NASDAQ:SCOC) today staked a leadership position for Intel processor-based systems in the emerging appliance server market. Compaq Computer Corporation has licensed and integrated SCO Appliance Server Technology into its new Prosignia NeoServer, which offers breakthrough simplicity for the high-volume, small business market. First publicly demonstrated in January of this year, SCO Appliance Server Technology is thin server system software designed for network computing environments and based on proven UNIX technology from SCO. It provides highly reliable application services such as file & print sharing, secure Internet services, backup services, email services, and web page development. The software can be used for a variety of network computing devices in all market segments, from small businesses up through the enterprise. "The arising appliance server market is an exciting new opportunity to bring the benefits of our technology to a broader customer base," said Doug Michels, president and CEO of SCO. "With these new appliance servers, companies can reduce the cost and complexity of deploying networked business servers. We're very pleased to be the technology provider for our longtime strategic partner, Compaq, as they make a strong push into this emerging market." SCO Appliance Server Technology is designed for OEMs looking to build easy-to-use, feature-rich, high-volume appliance servers. Software for these appliance servers must be extremely reliable and virtually maintenance free. SCO's longstanding expertise in embedded systems makes its technology a natural fit for systems designed for this new market. The software is so flexible that SCO can tailor it for whatever specific market an OEM targets. Massive Growth Potential While current vendors have delivered appliance servers in limited quantities, SCO provides technology to OEMs aiming to deliver high-volume, Intel processor-based systems to this burgeoning market. According to Dataquest, the emerging small business appliance server market is expected to grow to 600,000 units and $1.6 billion in revenue by 2002, while the overall appliance server market is expected to hit $16 billion in revenue by 2002.* "SCO provides a very stable and robust version of UNIX and one that has many followers in the developer and OEM hardware community," said James Staten, director of research for Emerging Technologies at Dataquest. "Unlike other vendors in this market, SCO has chosen to enter this market the way Dataquest believes will be most successful - concentrate on software only and let major branded hardware suppliers deliver the boxes. This is a huge market potential for both companies."