VA Linux 1150 Server Combines Customizability and Affordability in 1.75-inch-high System

Entry-Level 1U Linux Server Extends Industry's Broadest Linux Server Product Line for Internet Data Centers

SUNNYVALE, Calif. -- June 28, 2000 -- VA Linux Systems, Inc. (Nasdaq: LNUX) today announced availability of the VA Linux 1150 server, a customizable entry-level 1U (1.75"-high) Linux server optimized for Internet data centers.

The new 1150 server complements VA Linux Systems' 1000 series of high-performance 1U servers, and further extends VA Linux Systems' product line--the industry's broadest offering of ultra-dense rackmount Linux servers for Internet infrastructure. VA Linux Systems now ranks as one of the top four vendors in IDC's statistics on Linux servers for Q1 2000, with nearly 90% growth in VA's total unit shipments since the previous quarter.(1)

"Leading ASPs, e-businesses and Internet hosting providers today are demanding customized Linux server solutions as they build out their Internet infrastructure to support the rapid growth that comes with success," said Robert Patrick, director of product marketing for VA Linux Systems. "The VA Linux 1150 server offers a cost-effective solution that can reliably scale, backed by expertise and services that move at the speed of Open Source. All of our product designs take full advantage of the flexibility of the Linux operating system, enabling us to combine build-to-order hardware and software in a way that no other vendor can."

The VA Linux 1150 provides a customizable, value-priced 1U Web server solution with a single Intel(R) Pentium(R) III processor, starting at under $2400. Build-to-order options for the 1150 server include up to 2GB of memory, and one or two front-accessible SCSI hard drives. Standard features in the VA Linux 1150 server include dual Ethernet network interface cards and a slim CD-ROM and floppy drive. Customers requiring more processing power in a 1U form factor have the option of purchasing VA Linux Systems' high-performance 1000 series server with dual-processor capabilities.

As with all systems from VA Linux, the 1150 server has been tested and configured for optimal Linux compatibility and include VA's award-winning "Total Linux Coverage (TLC)"[tm]--support and service as a standard feature. By integrating Linux systems, Open Source software and world-class professional services, VA Linux Systems provides the expert single point of contact for comprehensive Linux-based Internet infrastructure solutions.

About VA Linux Systems

VA Linux Systems is the expert provider of Linux and Open Source solutions for the Web. Founded in 1993, VA Linux provides a single point of contact for optimized Linux systems; Open Source software; and world-class professional services and support. VA Linux helps ASPs, e-businesses and Internet hosting providers build out their Internet infrastructure to meet the challenges of rapid growth. As part of its commitment to expanding the Open Source community, VA Linux Systems owns and operates a network of the leading Linux destinations on the Internet, including SourceForge, the world's largest Open Source development center, as well as Freshmeat.net, Slashdot.org and Linux.com. Headquartered in Sunnyvale, Calif., VA Linux is located on the Web at http://www.valinux.com/.

VA Linux Systems was selected as one of Fortune Magazine's top "Cool Companies," Red Herring's "Top 100 Companies of the Electronic Economy" and Upside's "Hot 100 Companies" in 1999. VA Linux was awarded the 1999 Linux Journal Editors' Choice Award for Best New Hardware, and was the only company to win multiple "Show Favorite" awards at LinuxWorld Conference & Expo in March 1999 (in Computers and Science/Engineering) and again in February 2000 (in Hardware and Peripherals/Support Services). International Data Corporation (IDC) recently ranked VA Linux Systems as a top four Linux server vendor in Q1 2000.

Certain statements in this press release, including statements relating to future market position and results, are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different from expectations. Such risks and uncertainties include, but are not limited to, continued introduction of new products; the evolving market for Linux-based systems; competition with larger and more established companies; the company's ability to attract and retain qualified personnel; and other risks detailed in VA Linux's filings with the Securities and Exchange Commission, copies of which may be accessed through the SEC's web site at http://www.sec.gov/.

Note: VA Linux Systems, "Total Linux Coverage" and SourceForge are trademarks of VA Linux Systems, Inc. Linux is a registered trademark of Linus Torvalds. All other trademarks are property of their respective owners.

(1) Source: International Data Corporation, Worldwide Quarterly Server Tracker.