Linuxcare and VMware Combine Forces

Partnership Allows Companies to Share Technical and Marketing Support

San Francisco, January 7, 2000 -- Linuxcare, Inc., the premier provider of Linux services to the Global 1000, and VMware, Inc., the leading provider of virtual machine applications for PCs, recently announced a partnership to share their technical and marketing expertise.

This partnership brings together two of the most forward-looking companies in the Linux arena, enabling Linuxcare and VMware to combine in-depth technical knowledge that will benefit customers who want to run Windows(R) software or other applications on their Linux systems.

VMware's innovative software significantly improves the overall computing experience by offering power and versatility for Linux users, and freeing developers and end users from operating system constraints. This partnership will also enable Linuxcare to provide application support to its customers running VMware on their desktops.

This highlights Linuxcare's continued commitment to providing the most in-depth technical support in the Linux space.

"We're delighted to have such a close working relationship with VMware," noted Dave Sifry, chief technology officer of Linuxcare. "VMware delivers exciting virtual machine technology, which Linuxcare has used since the early days of the company. This technology exchange enables us to provide our customers with the most advanced application support possible while reducing costs."

In addition, Linuxcare uses VMware daily to allow its employees to run applications that have not yet been ported to Linux. The company also utilizes the technology to create virtual workstations running a variety of Linux systems for diagnostic and testing approaches.

"Linuxcare supports far more than simply the Linux kernel," said Sifry. "We offer comprehensive Linux service for mixed network environments."

"We're pleased that Linuxcare has integrated VMware into its services operations," commented Reza Malekzadeh, VMware's director of marketing. "The combination of VMware software and Linuxcare customer services has generated a powerful tool for enterprise customers interested in deploying Linux in heterogeneous computer environments."

In addition to allowing customers to run Windows applications on Linux systems, VMware technology also affords Linux users a variety of useful capabilities: the ability to develop and test applications concurrently for multiple target environments, the ability to add new operating systems without disk repartitioning, the ability to network virtual environments and share files and devices, the ability to undo any changes made in a user session, and the ability to run new or untested operating systems or applications in a secure sandbox without risking the stability of critical data or applications.

About VMware
VMware is the originator of virtual machine applications for PCs running different flavors of Linux, Windows NT and Windows 2000 operating systems. The company's roster of customers includes developers, corporate IT professionals, power users, government agencies, colleges and universities and computer enthusiasts worldwide.

The software was awarded the "Innovation Award 1999" by Australian Personal Computer Magazine. VMware is a privately held company based in Palo Alto, Calif. For more information, please visit the Web site at http://www.vmware.com.

VMware is the trademark of VMware, Inc. Linuxcare is a trademark of LC, Inc. Linux is a registered trademark of Linus Torvalds. Microsoft and Windows are registered trademarks of Microsoft Corporation. All other marks and names mentioned herein are the property of their respective holders.

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 http://www.linuxcare.com/ 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 jpinfo@linuxcare.com.

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.