China adopts UNIX SVR4.2 advanced operating system standard

BEIJING, China -- NOVEMBER 11, 1992 -- UNIX System Laboratories, Inc. (USL), together with a consortium of six companies from the People's Republic of China (PRC), and Dascom (Holdings) Ltd., a leading Hong Kong-based software organization, today announced the selection of the UNIX SVR4.2 operating system as the core technology for establishing an "open Chinese operating system."

At the same time, they announced the formation of a new joint venture, UNIX System Technology China, Ltd. (UST-CHINA), created under the sponsorship of the PRC's Ministry of Machinery and Electronics Industries (MMEI), to provide customized UNIX system development, training, and support within China.

MMEI has primary responsibility for setting the direction of China's computer and electronics industries. Their selection of UNIX(R) SVR4.2 and sponsorship of the UST-China joint venture establish a core advanced operating environment for the PRC.

"UNIX SVR4.2, along with associated USL system software and educational services, will be key to our computer industry development," said Prof. Yang Tian-Xing, Director General, Department of Computing, MMEI.

"The UNIX system has an outstanding reputation as a multitasking, multi-user operating system and is widely accepted throughout the computer industry as the enabler of open systems.

"We selected USL as a partner because they are the inventor, and leader in UNIX system technology. USL's direct involvement and support through this joint venture will be important in promoting the broad use of UNIX system-based applications and in the creation of an `open Chinese operating system' based on USL's UNIX SVR4.2."

"UNIX SVR4.2 will become the backbone for government, banking, transportation, energy, communications, and other essential parts of China's rapidly expanding infrastructure," said Roel Pieper, President and CEO of UNIX System Laboratories, Inc. in Summit, N.J.

"The formation of UST-China is a landmark in the global expansion of open systems. It represents USL's commitment to the Chinese market and the entire Asia/Pacific region. The organizations we are partnering with in China represent enormous strength in the production, distribution, and sales of computer hardware and software.

"Together, they account for better than 60 percent of all microcomputers and software sold in the PRC. They will quickly establish SVR4.2 as the basis of an open Chinese operating system and drive the complete range of USL products into the core of the Chinese market."

UST-China Mission and Management

Initially, UST-China will concentrate on the development of a localized version of UNIX SVR4.2 for the Chinese marketplace, and supplying SVR4.2 to the computer industry within the PRC.

UST-China will help upgrade the standards of the overall software industry in China through the development, production, and marketing of computer software based on open systems standards, and by providing services and support.

These services will include broad distribution of localized UNIX system software and other USL products to companies within the PRC along with third party products needed to support integrated platforms.

In addition, the joint venture company will provide engineering services and open systems design and architecture support as well as education and training services to end-users and distributors.

Heading UST-China as President is Prof. Jia Yao Liang, Vice President of the China National Computer Software & Technology Service Corp. (CS&S), the largest software company in the PRC and one of the joint venture parties. Dr. James Clark, President and Representative Director of UNIX System Laboratories Pacific Ltd. (USLP) has been named Chairman of the Board.

"The establishment of UST-China signifies a new phase in the cooperative relationship between MMEI, the Chinese computer industry, USL, and Dascom," noted Prof. Jia. "This joint venture will provide the PRC's large end user market with a solid and reliable channel through which to obtain both current and future UNIX system technology and products."

"This presents exciting opportunities for everyone involved," said Dr. Clark. "But it really emphasizes the global recognition and acceptance of the UNIX system as the preferred operating environment. USL is proud to enjoy this special relationship with MMEI, Dascom, and China's leaders in computer technology."

"UST-China is the result of sustained effort in the PRC for nearly two years by USL, Dascom, and MMEI," said Mr. Cheung Ho Chi, Managing Director, Dascom (Holdings) Ltd.

"It provides USL with a valuable opportunity to enter the PRC computer market at a time when it is expanding rapidly under economic reform and adopting a more open, international policy.

"UNIX SVR4.2 will enjoy widespread acceptance by the PRC's government ministries, Chinese computer manufacturers, educational institutions and the end users themselves. The degree of market penetration that the UNIX system will achieve in the PRC will be significant."

The PRC companies involved in the joint venture are Shenzhen Comtec Software, Ltd. (Comtec); China National Computer Software & Technology Service Corp. (CS&S); China Great Wall Computer Group Co. (GW); Langchao Electronic Information Industrial Group Corp. (LC); Chang Jiang Computer Union Corp. (Group) and the Beijing Information Development Center (BIDC) established by the Electronics Industry Bureau of the Beijing Municipal Government, where the joint venture will be based.

"There now exists a climate of reform and openness in the PRC. As part of this, the establishment of UST-China highlights a critical new stage in the utilization of the UNIX operating system," stated Mr. Lu Shou Qu, Electronics Industry Bureau of the Beijing Municipal Government.

UNIX System Laboratories, Inc., headquartered in Summit, N.J., develops and licenses UNIX System V technology adopted by 80 percent of Open Systems vendors worldwide. Other USL products include the TUXEDO(R) Enterprise Transaction Processing System, Open Networking Platform(TM) OSI software and the C++ Language System.

COMPANY FACT SHEET

UNIX SYSTEM TECHNOLOGIES CHINA, LTD.

SHENZHEN COMTEC SOFTWARE, LTD. (COMTEC)

Comtec, a representative company of the PRC's Ministry of Machinery and Electronics Industries (MMEI), is one of China's leading software development, systems engineering and integration companies. In addition, it provides consultation and services to organizations both inside and outside the PRC. CHINA NATIONAL COMPUTER SOFTWARE & TECHNOLOGY SERVICE CORP. (CS&S)

CS&S is the largest computer software technology organization in the PRC with nearly 2000 employees, more than 70 percent of whom are engineering and technical staff. Currently, the company has more than 20 subsidiaries.

CHINA GREAT WALL COMPUTER GROUP CO. (GW)

GW is the largest computer hardware manufacturer in the PRC. By focusing on scientific and technological developments, the company's objective is the continued expansion of its production, reselling and distribution activies within the PRC and abroad.

LANGCHAO ELECTRONIC INFORMATION INDUSTRIAL GROUP CORP. (LC)

LC is one of the top three computer hardware manufacturers in the PRC, employing 1325 members of staff. Its activities include scientific research and development, production reprocessing, marketing and reselling, technical services and training, and the import and export of computer technology.

CHANG JIANG COMPUTER UNION CORP. (GROUP)

The Chang Jiang Group was established in March 1987 as part of the MMEI's stretegy to develop centralized, model enterprises in the various regions of the PRC. The Group represents the computer industry in southern China and forms the basis for the electronics industry in Shanghai. Its extensive operations cover six provinces and employ more than 47,000 employees, 14,600 of whom are technical staff.

BEIJING INFORMATION DEVELOPMENT CENTER (BIDC)

BIDC was established by the Electronics Industry Bureau of the Beijing Municipal Government in order to promote the development of electronic information technology in Beijing.

UNIX SYSTEM LABORATORIES, INC. (USL)

USL's mission is to grow the Worldwide UNIX System market, to provide quality products and services, and to enable high- value business and personal applications worldwide. USL has domestic sales offices in New Jersey, Washington, Boston, San Jose, and Houston, and international sales offices in the UK, Japan, India, South Korea, Australia, Singapore and Taiwan.

DASCOM (HOLDING) LTD.

Dascom has registered capital of 10 million HK$ with subsidaries Dascom Electronics Ltd, Dascom Chemicals Ltd, Dascom Textiles Ltd and Dascom Matsutake Ltd. It had a total turnover of 500 million HK$ in 1991. It has a number of investments and JVs in the PRC and has established an R&D centre in Shekou, Shenzhen. The company has established a number of technology partnerships in the US, Japan and the PRC and is engaged in the research and development of word processors, printers, computer systems and networking. Dascom is a distributor for STAR Micronics, C.Itoh, AMPLEX, AT&T and NCR. It has branches in the USA and Canada, and a marketing and service network in the PRC.

EDITORS NOTE:

Following the release is a fact sheet describing all six members of the new UNIX consortium announced.
Larry Lytle - Director, Corporate Communications
908-522-5186 (office)

Ry Schwark - Press and Analyst Relations
908-522-6264 (office)