SCO Announces Worldwide Availability of SCO Intellectual Property License

LINDON, Utah, Jan 15, 2004 -- The SCO Group, Inc. (Nasdaq: SCOX), the owner of the UNIX® operating system and a leading provider of UNIX-based solutions, today announced it has begun making the SCO Intellectual Property License available to companies and organizations worldwide including small-to-medium size businesses and large corporations. The company began rolling out the license today in the U.K., France and other European countries and plans to make the license available to many more countries and regions by February 1.

The SCO Intellectual Property (IP) License permits the use of SCO's intellectual property, in binary form only, as contained in Linux distributions. By purchasing the license, customers are properly compensating SCO for the UNIX source code, derivative UNIX code and other UNIX-related intellectual property and copyrights owned by SCO as it is currently found in Linux.

The SCO IP License is currently available at introductory pricing of $699 US per server processor and $199 US per desktop processor. The company is also offering the license to embedded device manufacturers who use Linux to run their devices.

In addition to extending the license to customers worldwide, the company also announced the availability of the license through select SCO resellers. SCO resellers who are interested in obtaining more information about providing the SCO IP License to their customers can contact their local SCO channel sales manager or visit www.sco.com after February 1, 2004.

"While we have identified several problem areas at issue within Linux, we also want to be fair to customers and allow them to continue using Linux and our intellectual property unencumbered," said Chris Sontag, senior vice president and general manager of SCOsource, the intellectual property licensing and protection division of The SCO Group, Inc. "We believe the SCO IP License helps customers satisfy the legal requirements to continue using SCO's UNIX intellectual property in Linux in a forthright way while properly compensating the company for use of its property."

Availability

Linux end users that are interested in more information or in purchasing the SCO IP License throughout North America can call 1-888-553-3302 or e-mail SCO at scoiplicense@sco.com . Customers outside of North America should contact their local SCO sales office or e-mail SCO at scoiplicense@sco.com.

Forward looking statement safe harbor:

This press release contains a forward looking statement regarding The Company's plans to make the SCO Intellectual Property License available in the U.K., France, and other European countries and many more countries and regions by February 1, 2004. This statement is subject to risks and uncertainties including without limitation those risks and uncertainties identified in our filings with the SEC and the risk that we will not be in a position to roll out this license in such countries and regions as planned. We undertake no obligation to update the information in this release, except as required by law.

About The SCO Group

The SCO Group (Nasdaq: SCOX) helps millions of customers in more than 82 countries to grow their businesses with UNIX business solutions. Headquartered in Lindon, Utah, SCO has a worldwide network of more than 11,000 resellers and 4,000 developers. SCO Global Services provides reliable localized support and services to all partners and customers. For more information on SCO products and services visit http://www.sco.com .

SCO and the associated SCO logo are trademarks or registered trademarks of The SCO Group, Inc., in the U.S. and other countries. UNIX is a registered trademark of The Open Group in the United States and other countries. Linux is a registered trademark of Linus Torvalds. All other brand or product names are or may be trademarks of, and are used to identify products or services of, their respective owners.