SCO UNVEILS ENTERPRISE CLASS OPERATING SYSTEM

Release of SCO UnixWare 2.1 Paves Way for Next-Generation UNIX Systems

SANTA CRUZ, CA (FEBRUARY 12, 1996) -- In a strategic move that marks the
first step toward the consolidation of a single, high-volume UNIX System,
SCO (NASDAQ: SCOC) today announced the release of SCO UnixWare 2.1, the
computing world's first industry-standard, enterprise-class server
operating system for advanced Intel platforms. The availability of SCO
UnixWare 2.1 paves the way toward the next-generation 64-bit UNIX system
technology, and signals SCO's drive into the enterprise market.

"We are targeting SCO UnixWare as a solution for enterprise computing
environments -- enterprise departmental servers, and the data center,"
said Alok Mohan, SCO president and chief operating officer. "It's SCO's
goal to bring the same economies of scale and value to the enterprise that
we've been steadily delivering for the past 15 years. SCO is committed to
extending its presence in the enterprise market, and SCO UnixWare 2.1 is
the right product to accomplish this."

SCO UnixWare 2.1 provides businesses with a highly reliable, cost-
effective, networked UNIX operating system platform with a strong
migration path to 64-bit UNIX Systems. SCO's powerful new operating system
features a wide range of enterprise-enabling technologies, including
enterprise-level performance and scalability, high-speed networking and
interoperation with TCP/IP and NetWare networks, dynamic storage
management using RAID features, and support for high-end, Intel
processor-based hardware server platforms.

"It's our plan to work with the industry leading OEMs and ISVs to make
UnixWare an industry standard enterprise operating system," said Mike
Shelton, SCO vice president, enterprise solutions. "We foresee
establishing relationships with OEMs who will adopt UnixWare as their core
enterprise OS and add additional enterprise functionality to meet their
customer's requirements. We are actively pursuing developers for
re-licensing OEM technologies for incorporation into the core UnixWare
offering."

Richard French, Oracle's vice president, Intel UNIX Products Division,
said, "Oracle endorses SCO's product direction and eagerly awaits the
technical enhancements that SCO is making to their operating systems.
Already, Oracle and SCO have demonstrated remarkable performance in fully
audited TPC-C benchmarks, providing the best industry price performance as
well as the best performance ever on any system below $1 million at 3849
tmpC ($161/tmpC)."

With SCO UnixWare 2.1, customers can now deploy a single, highly- scalable
server that functions both as a UNIX System application server as well as
a networking platform that incorporates the most popular LAN protocols,
including new support for NetWare Services.

OEMs and ISVs

Key enterprise OEMs -- including Intel, Unisys, ICL, and NCR -- have
strongly endorsed SCO UnixWare 2.1 as a platform for enterprise
solutions.

Key ISVs -- including Oracle, Informix and CA -- endorsed SCO UnixWare 2.1
as an enterprise platform for their product offerings and are actively
planning and delivering products tuned for the new system.

Product Roadmap

SCO UnixWare. 2.1 delivers on SCO's commitment to the future. SCO UnixWare
2.1 is the first step toward the consolidation of SCO OpenServer and
UnixWare systems into a high volume UNIX operating system code- named
Gemini, and the next-generation 64-bit UNIX system announced jointly by
SCO and HP. Prior to the Gemini release, both SCO OpenServer and SCO
UnixWare product lines will continue to be individually supported and
enhanced. SCO has scheduled a software compatibility toolkit, called the
Gemini Software Development Kit, for the summer of 1996, enabling
developers to begin developing their applications to run on Gemini in
1997. A full 64-bit UNIX implementation is expected for release in 1998.

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. For additional
corporate and product information, see SCO's home page on the World Wide
Web: http://www.sco.com.
 
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