Ray Noorda's Canopy Group Propels Caldera System's OpenLinux into the Embedded Market Through Lineo, Inc.

Mutual Board of Directors and Funding Ensure Compatibility and Quick Customer Response from Caldera Systems and Lineo

Orem, UT — August 5, 1999 — Caldera Systems, Inc. today announced that former Novell CEO and current chairman of the Canopy Group Investment Company, Ray Noorda, and Ransom Love, President and CEO of Caldera Systems, have agreed to support Lineo, Inc. (formerly Caldera Thin Clients) in Lineo's development of Embedix, an exclusive OpenLinux-based embedded system platform. Caldera Systems and Lineo will work together to expand Linux-based Internet solutions into the enterprise and embedded systems spaces offering a full range of OpenLinux products and services.

Caldera Systems has long been the leader in "Linux for Business" solutions. This standard has led to the development and deployment of Linux-based client and server solutions into the enterprise. Lineo's exclusive licensing of OpenLinux, via Embedix, will extend OpenLinux' robust Internet and network connectivity to embedded devices.

"The global demand for Linux-based Internet solutions is not only staggering — but skyrocketing," said Ralph Yarro, president of the Canopy Group Investment Company. "Major solutions providers are under a great deal of pressure to provide a full range of Linux-based Internet solutions ranging from hand held devices to enterprise level connectivity. Leveraging the strength of Lineo in the embedded market will allow OpenLinux to scale to meet the needs of all business customers."

Ransom Love, President and CEO of Caldera Systems, Inc. agrees. "Linux is ideally suited as the operating system of choice for the new breed of Internet client and server devices. Customers developing and deploying Internet solutions from the Fortune 1000 to the home office buyer, to the manufacturers of embedded devices — are now all looking for Linux solutions.

They want more than one option for more than one type of business. OpenLinux can now be scaled to fit the need — whether on the enterprise or in the embedded systems space."

"Lineo has successfully given rebirth to DR DOS [ http://www.calderasystems.com/company/drdos.html ] in the embedded systems market," said Bryan Sparks, CEO of Lineo, Inc. "Lineo's technology partners and OEM customers have increasingly been demanding we transition to Linux-based solutions. Our strong partnership with Caldera Systems provided a natural match for us to develop and deploy a new embedded Linux platform, Embedix, based exclusively on OpenLinux."

Further announcements regarding OpenLinux, the embedded Linux market and Linux education and certification will be made at LinuxWorld, the industry's largest Linux-focused trade show, August 9-12 in San Jose, California.

About Caldera Systems
Caldera Systems, Inc. is the Linux for Business technology leader in designing, developing and marketing Linux-based Internet client and server solutions including OpenLinux, NetWare for Linux, Linux technical training, certification and support. Caldera Systems can be reached at 888-GO-Linux (888-465-4689) or via E-mail at linux@calderasystems.com. To become an OpenLinux reseller, please visit www.linuxreseller.com. To access the Caldera Systems Web site, please bookmark www.calderasystems.com. Caldera Systems, Inc. is a Canopy Group holding under the Ray Noorda/Canopy Group Investment Company. Ray Noorda is the former CEO of Novell, Inc. (NASDAQ:NOVL)

LineoTM, Inc.
LineoTM, Inc. develops, markets and sells embedded operating systems and applications that provide consumers with simple, low-cost software for interacting with the Internet via embedded devices. Lineo owns and develops EmbedixTM (embedded Linux platform based exclusively on OpenLinux by Caldera Systems, Inc.), EmbrowserTM (embedded Web browser), DR DOSŪ [ http://www.calderasystems.com/company/drdos.html ] (component-based embedded OS) and other technologies designed to improve connectivity while reducing system requirements and per-unit costs. Visit Lineo at www.lineo.com or send e-mail to info@lineo.com.

Caldera Systems, Inc. is a registered trademark and OpenLinux is a trademark of Caldera, Inc.

LINUX is a registered trademark of Linus Torvalds.

Lineo and Embedix are trademarks of Lineo, Inc. All other products, services, companies, events and publications are trademarks or registered trademarks of their respective holders in the United States and/or other countries.