HP AND SCO TO PREVIEW NEXT-GENERATION UNIX SYSTEM TECHNOLOGY AT
UNIFORUM'96

UNIX leaders to launch next wave of business computing

SANTA CRUZ, CA (JANUARY 17, 1996) -- THE SANTA CRUZ OPERATION, INC.
(NASDAQ:SCOC) and Hewlett-Packard Company (NYSE:HWP) today announced that
they will hold an event at UniForum'96 in San Francisco, February 14-16.
The event will preview the next-generation UNIX system technology the two
companies are jointly developing. The companies will highlight the
specifications for their forthcoming UNIX system technology, discuss their
mutual development work, and provide a technology roadmap for delivering
premier system software for reliable, secure cost- effective operation of
enterprise-wide distributed computing environments.

Alok Mohan, president and CEO of SCO, said, "We have made a lot of progress
since our September announcement at UNIX Expo in New York, hammering out
the details of how we're going to deliver the next- generation UNIX system
technology to our respective customers. HP really understands enterprise
customers and their needs, and together we are forging an architecture and
a development plan that will enable us to create a single UNIX system
technology that truly serves businesses of all sizes."

Richard W. (Rich) Sevick, HP vice president and general manager of the
System Technology Group, said "Over the past few months, considerable
effort has been put forth in designing a cooperative plan for producing
UNIX system software that will serve all levels of business, from the
corner store to the global enterprise. By combining our respective
strengths, SCO and HP will continue to provide leadership in UNIX."

The press, application developers, system vendors, and customers will be
invited to an Industry Event, scheduled for Wednesday, February 14, at
10:30 a.m. The event will be held at the Moscone Center, Room 120 (North
Hall).

In September, 1995, HP, SCO, and Novell said they would work together to
create next-generation UNIX System software, a 64-bit standards based
operating system with integrated Novell technology, for the upcoming
HP/Intel architecture and other architectures. In December, SCO completed
its acquisition of the UNIX business from Novell. Now HP and SCO are
working together to develop the next-generation UNIX system technology
that will meet customers' future business and inter- business computing
needs.

Hewlett-Packard Company

Hewlett-Packard Company is a leading global manufacturer of computing,
communications and measurement products and services recognized for
excellence in quality and support. Hewlett-Packard has 102,300 employees
and had revenue of $31.5 billion in its 1995 fiscal year. Information
about HP and its products can be found on the World Wide Web at:
http//www.hp.com.

About SCO

SCO is the world's leading supplier of UNIX server and host systems, and a
leading provider of client-integration software that integrates Windows
PCs and other clients with UNIX servers from all major vendors. SCO
Business Critical Servers run the critical, day-to-day operations of large
branch organizations in retail, finance, telecom, and government, as well
as corporate departments and small to medium- sized businesses of every
kind. SCO sells and supports its products through a worldwide network of
distributors, resellers, systems integrators, and OEMs.
 
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