IBM's Investment in Novell

Novell's SUSE LINUX Enterprise Server 9 First Linux Distribution to Complete Evaluation Assurance Level EAL4+ BOSTON (LinuxWorld Conference & Expo 2005) — IBM and Novell today announced that SUSE® LINUX Enterprise Server 9 has successfully completed a Common Criteria evaluation to achieve a new level of security certification that will further enable Linux to be adopted by governments and government agencies for mission-critical and command-and-control operations. In addition, the two companies cooperatively achieved US Department of Defense Common Operating Environment compliance, a Defense Information Systems Agency requirement for military computing products. Novell’s SUSE LINUX Enterprise Server 9 on IBM eServers has achieved Controlled Access Protection Profile under the Common Criteria for Information Security Evaluation, also referred to as CAPP/EAL4+. A formal certificate issued by the Federal Office for Information Security in Germany (BSI) is expected t...

Agreement enables IBM to ship SUSE LINUX Enterprise Server across its servers Novell will develop and support SUSE LINUX on IBM platforms SALT LAKE CITY (BrainShare® 2004) — Novell today announced an agreement with IBM enabling IBM to ship SUSE® LINUX Enterprise Server, which customers license from Novell, with IBM’s servers. This agreement will provide Novell an exciting new channel to supply SUSE LINUX to businesses around the world. As part of today’s agreement, IBM can ship, or preload, SUSE LINUX Enterprise Server across its entire server line, including IBM eServer iSeries, pSeries, xSeries, and zSeries, as well as IBM’s eServer BladeCenter systems.* The parties have extended IBM’s existing agreement with SUSE LINUX, and Novell will continue to develop and support SUSE LINUX on all IBM server platforms. “The momentum behind Linux in the marketplace continues to grow,” said Jack Messman, chairman and CEO of Novell. “Novell is working with companies like IBM to deliv...

IBM to purchase $50 million in Novell convertible preferred shares SALT LAKE CITY (BrainShare® 2004) — Novell today announced it has signed a definitive agreement with IBM in connection with IBM’s previously announced $50 million investment in Novell. Publicized in conjunction with Novell’s offer to acquire SUSE® LINUX in November 2003, the investment, the primary terms of which were negotiated in November 2003, entails the purchase by IBM of Novell Series B convertible preferred shares that are convertible into 8 million shares of Novell common stock at a price of $6.25 per share. The Series B convertible preferred shares are entitled to a dividend of 2% per annum, payable quarterly in cash. Due to an increase in Novell’s common stock price since November 2003, Novell expects to record a one-time, non-cash deemed dividend of approximately $26 million attributable to the value of the preferred stock’s conversion feature. This beneficial conversion feature will have no imp...

First Linux Operating System to Earn Evaluation Assurance Level EAL3+ Certification Companies Also Reach Common Operating Environment (COE) Standard Necessary for Command and Control Operations NEW YORK - IBM and Novell's SUSE LINUX business unit today announced they had achieved new levels of security and operations certification for SUSE that will further enable the adoption of Linux by governments, as well as the Department of Defense for critical command-and-control operations. SUSE LINUX Enterprise Server 8 with Service Pack 3 on IBM eServers has achieved Controlled Access Protection Profile compliance under The Common Criteria for Information Security Evaluation (CC), commonly referred to as CAPP/EAL3+. This represents a major expansion from last August, when IBM and SUSE announced they had achieved the first ever security certification for Linux. At that time, EAL2+ certification was announced for IBM's eServer xSeries line. Today's CAPP/EAL3+ achiev...

LINDON, Utah -- The SCO Group, Inc. (Nasdaq: SCOX), the owner of the UNIX® operating system and a leading provider of UNIX-based solutions, today filed suit against Novell (Nasdaq: NOVL) for its alleged bad faith effort to interfere with SCO's rights with respect to UNIX and UnixWare®. Among the allegations in the suit: Novell has improperly filed copyright registrations in the United States Copyright Office for UNIX technology covered by SCO's copyrights. Novell has made false and misleading public claims that it, and not SCO, owns the UNIX and UnixWare copyrights. Novell has made false statements with the intent to cause customers and potential customers to not do business with SCO. Novell has attempted, in bad faith, to block SCO's ability to enforce its copyrights. Novell's false and misleading representations that it owns the UNIX and UnixWare copyrights has caused SCO irreparable harm to its copyrights, its business, and its reputation. The lawsuit, file...

PROVO, Utah — Novell today completed its acquisition of SUSE LINUX, a combination that brings global technical support, consulting and training services and industry-leading networking and security to Linux, and provides a compelling alternative for companies wishing to leverage the many benefits of open source. Novell now offers a full range of enterprise solutions on the Linux platform, from the server to the desktop. The closing of the $210 million cash deal also opens the door for completion of the $50 million investment of IBM in Novell announced November 4. "Combining Novell's global presence and deep knowledge of enterprise software with SUSE LINUX's powerful technology makes Novell one of the strongest options for enterprise Linux literally overnight," said Jack Messman, chairman and CEO of Novell. "Novell's customers have long asked us to back Linux with our great networking software and technical support system. Now we're going even...

Novell's 20 years experience as a global enterprise operating system vendor bolsters initiatives at leading Linux advocacy consortium BEAVERTON, OR and PROVO, UT - The Open Source Development Labs (OSDL), a global consortium of customers and leading technology companies dedicated to accelerating the adoption of Linux, today announced that Novell has joined OSDL and will participate in the Lab's key initiatives to advance the use of Linux for enterprise computing. In addition, Jeffrey T. Hawkins, VP, Office of the CTO at Novell, has been elected to OSDL's board of directors. "The Linux industry is rapidly accelerating with the promise to give customers lower computing costs with greater freedom and control," said Chris Stone, Novell vice chairman - Office of the CEO. "By joining forces with OSDL, Novell aims to take a leadership role in helping the industry overcome the many challenges that still exist to help Linux fulfill its promise as an en...

Novell Announces Agreement to Acquire Leading Enterprise Linux Technology Company SUSE LINUX PROVO, Utah — Novell today announced it has entered into an agreement to acquire SUSE LINUX, one of the world's leading enterprise Linux companies, expanding Novell's ability to provide enterprise-class services and support on the Linux platform. With the open source expertise of SUSE LINUX and Novell's world-class networking and identity solutions and support, training and consulting services, Novell will be able to deliver Linux and all its components — from the server to the desktop — and give organizations a secure, reliable and mature Linux foundation. Novell will pay $210 million in cash to complete the acquisition. The transaction is subject to regulatory approval and the winding up of shareholder agreements. Novell expects the transaction to close by the end of its first fiscal quarter (January 2004). This latest move follows Novell's August purchase of Ximian, a lea...

Amendment to Asset Purchase Agreement Confirms Copyright Ownership LINDON, Utah -- The SCO® Group (SCO) (Nasdaq: SCOX), the owner of the UNIX® operating system, today confirmed its previously stated ownership of UNIX copyrights. As SCO has consistently maintained, all rights to the UNIX and UnixWare technology, including the copyrights, were transferred to SCO as part of the Asset Purchase Agreement between Novell and SCO dated September 19, 1995. Any question of whether the UNIX copyrights were transferred to SCO under the Asset Purchase Agreement was clarified in Amendment No. 2 to the Asset Purchase Agreement dated October 16, 1996. "This amendment simply confirms SCO's long stated position that it owns all copyrights associated with the UNIX and UnixWare businesses," said Chris Sontag, senior vice president and general manager, SCOsource intellectual property division, SCO. The amendment was signed by Steven Sabbath, Vice President, Law and Corporate Aff...

PROVO, Utah — Defending its interests in developing services to operate on the Linux platform, Novell today issued a dual challenge to The SCO Group over its recent statements regarding its UNIX ownership and potential intellectual property rights claims over Linux. First, Novell challenged SCO's assertion that it owns the copyrights and patents to UNIX System V, pointing out that the asset purchase agreement entered into between Novell and SCO in 1995 did not transfer these rights to SCO. Second, Novell sought from SCO facts to back up its assertion that certain UNIX System V code has been copied into Linux. Novell communicated these concerns to SCO via a letter (text below) from Novell® Chairman and CEO Jack Messman in response to SCO making these claims. "To Novell's knowledge, the 1995 agreement governing SCO's purchase of UNIX from Novell does not convey to SCO the associated copyrights," Messman said in the letter. "We believe it unlikely...

SCO files billion dollar lawsuit for misappropriation of trade secrets, tortious interference, unfair competition and breach of contract LINDON, Utah-The SCO® Group (SCO) (Nasdaq: SCOX), the owner of the UNIX operating system, announced today that it has filed legal action against IBM (NYSE:IBM) in the State Court of Utah, for misappropriation of trade secrets, tortious interference, unfair competition and breach of contract. The complaint alleges that IBM made concentrated efforts to improperly destroy the economic value of UNIX, particularly UNIX on Intel, to benefit IBM's new Linux services business. IBM originally entered into their UNIX license agreement with AT&T in February 1985 in order to produce the AIX operating system. These agreements require that the UNIX software code be held in confidence, and prohibit unauthorized distribution or transfer. In 1995, SCO purchased the rights and ownership of UNIX and UnixWare that had been originally owned by AT...