Linuxcare Board Announces Departure of CEO, Delays Initial Public Offering

Tech Veteran Pat Lambs Named to Head New Office of the CEO

SAN FRANCISCO, April 7, 2000 -- The board of directors of Linuxcare, Inc., a leader in providing comprehensive services for Linux, today announced the departure of its president and chief executive officer, Fernand Sarrat, and announced the formation of a new office of the CEO. The new office will be headed by industry veteran Pat Lambs, who has served at Linuxcare as vice president of service delivery. In addition, Linuxcare announced that it will defer its planned initial public offering.

"While the departure of any CEO is an unfortunate development, the elements that make Linuxcare so powerful and promising remain intact," said Pat Lambs. "Linuxcare's position as the leader in enterprise Linux services and support is unrivaled. We are confident that Linuxcare's business plan, management strength, technology infrastructure, employee base, and technical expertise will enable us to work through this event and pursue our path toward an initial public offering and a long-term leading position in the Linux industry."

Linuxcare, which was in the quiet period of an initial public offering, will work with their investment banking partners, Credit Suisse First Boston, Chase H&Q, and Fleet Boston Robertson Stephens, to assess market conditions and identify optimal timeframes for the company's prospective offering.

Also named today to the office of the CEO were Arthur Tyde, a co-founder and executive vice president of Linuxcare; Ted Schlein, chairman of the board of Linuxcare and a partner at Kleiner Perkins Caufield & Byers; and Paul Vais, a Linuxcare director and a managing director at Patricof & Co. Ventures.

About the Members of Office of the CEO
Pat Lambs brings to Linuxcare over 30 years of experience and substantial accomplishments in customer support and consulting services management. Most recently, Lambs capped a five-year career at Ascent Logic Corporation as executive vice president and chief operating officer, where she managed 120 employees in sales, services, marketing and engineering. Earlier, Lambs served for 18 years in various senior management roles at Digital Equipment Corporation. There, she was credited for the successful turnaround of DEC's Network and Systems Integration business and for building it into the largest and most profitable United States-based professional services consulting organization. Also, while at DEC, Lambs developed and implemented a program that generated substantial revenues for 42 services. Lambs' technology career began at Applied Logic Corporation where she designed and taught customer courses in communications systems and diagnostic programs for DEC equipment.

Arthur Tyde is a co-founder and executive vice president of Linuxcare. He has worked extensively with corporate information systems in a wide variety of client/server and mainframe environments. Prior to founding Linuxcare, Tyde was president of the Bay Area Linux Users Group. As well, he held senior consulting and management positions at Gap, Inc., IBM and the California State Automobile Association. Tyde holds a B.A. degree from Michigan State University.

Ted Schlein is chairman of the board of Linuxcare and a partner at Kleiner Perkins Caufield & Byers with a focus on enterprise applications, infrastructure and services and application service providers. For KPCB's he serves on the boards of Angara E-Commerce Services, Corio, Extensity, Iron Planet among. He came to KPCB with significant experience in enterprise software business management at Symantec Corporation. He holds a B.S. in economics from the University of Pennsylvania.

Paul Vais is a managing director with Patricof & Co Ventures, Inc. Vais joined the firm in 1997 to focus on information technology-related investments in software, electronics and Internet infrastructure. Previously, he was a vice president with Enterprise Partners Venture Capital Partners, based in Los Angeles. Vais began his career in engineering and operations, accumulating 14 years experience in high tech companies. He held senior-level positions at NeXT Computer, Inc., where his responsibilities included systems engineering, European operations and worldwide marketing, and at Apollo Computer, a pioneer in the engineering workstation market. He holds an A.B. degree in computer science from the University of California at Berkeley.

About Linuxcare, Inc.
Linuxcare, Inc. is the leading provider of customer services for enterprise Linux environments, including technical support, professional services, education, and product certification. Linuxcare supports all major distributions of Linux, leading Open Source software solutions, and Linux-based enterprise database applications, on all major hardware platforms.

With funding from Kleiner Perkins and others, Linuxcare counts Dell Computer, IBM, and Sun Microsystems among its strategic partners. The company hosts the world's leading online technical support resource for Linux.

Founded in 1998, Linuxcare is headquartered in San Francisco. The company can be reached at +1-415-354-4878. Japanese information regarding Linuxcare services is now available through

Linuxcare and Linuxcare logo are service marks, and "At the center of Linux" is a trademark of Linuxcare, Inc. Linux is a registered trademark of Linus Torvalds. All other trademarks are acknowledged.

Forward-Looking Statements
Forward-looking statements in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Investors are cautioned that statements, including, without limitation, statements regarding current or future financial performance, management's plans and objectives for future operations, product plans and performance, management's assessment of market factors and statements regarding the strategy and plans of Linuxcare and its strategic partners, constitute forward-looking statements which involve risks and uncertainties. These statements are based upon Linuxcare's current expectations and judgement about future developments in Linuxcare's business and may be affected by several factors, including, without limitation, delays in or increased costs of production, delays in or lower than anticipated sales of Linuxcare services, general conditions in the computer industry. Linuxcare undertakes no obligation to update any such statements to reflect actual events.