EXHIBIT 99.1
FOR RELEASE
CONTACTS:
Lynn Schroeder Bette Kun
Investor Relations Public Relations
Tel: 831-427-7399 Tel: 831-427-7397
lynnsc@sco.com bettek@sco.com
SCO ANNOUNCES OFFICIAL CLOSING OF SALE OF TWO DIVISIONS TO CALDERA
Filings complete-- SCO goes forward as Tarantella, Inc.
Santa Cruz, CA (May 7, 2001)--The Santa Cruz Operation, Inc. (SCO) (Nasdaq:SCOC
transitioning to Nasdaq:TTLA) today announced consummation of the sale of the
company's Server Software and Professional Services Divisions to Caldera
Systems, Inc. (Nasdaq:CALD). Both SCO and Caldera shareholder approval was
received for the ratification of the Agreement and Plan of Reorganization dated
August 1, 2000 and amended on September 13, 2000, December 12, 2000 and February
9, 2001, between SCO, Caldera Systems and Caldera International, Inc., and all
necessary documents have been filed.
SCO will now effect a change of the corporate name to Tarantella, Inc.
Additionally, the company will change its Nasdaq ticker symbol to TTLA, expected
to take effect tomorrow. This reflects the company's new forward strategy to
showcase their Tarantella product line.
Doug Michels, Tarantella's CEO stated, "I am extremely pleased to be able to
announce the completion of this transaction and thank the shareholders for
aligning with our vision of the company's future. Tarantella and Caldera alike
are now able to pursue their more focused directions and explore the great
potential that lies ahead for both companies."
- More -
Under the terms of the transaction, SCO received cash consideration of $23
million (of which $7 million had already been received), as well as a note from
Caldera for $8 million due in four quarterly installments beginning in the
second year after the close of the transaction. Additionally, SCO received 16
million shares of Caldera International, Inc., the resulting newly created
company which combines the assets of Caldera Systems and the two SCO divisions.
The companies have also agreed to share revenue from SCO OpenServer products for
a period of three years, if sales exceed pre-defined levels during that time.
This transaction marks a dramatic change of focus for the 22-year-old company.
SCO's UNIX operating system products, consulting and support will now be
integrated by Caldera International into an extensive line of operating system
products designed around Caldera's mission of "Unifying UNIX with Linux for
business." Tarantella, Inc. will focus its efforts on its network layer
software products that reside between the applications server and the desktop or
mobile client device.
Tarantella, Inc. has already established itself as a leader in web-based
software delivery. By leveraging an organization's existing IT infrastructure
and architecture, without changing any code, the company's flagship product
Tarantella Enterprise 3 offers a non-intrusive solution for CIOs to regain
control of their IT environments and realize a high rate of savings.
Tarantella, Inc.'s compelling product offerings are validated by their existing
customers and partners including Sun, Computer Associates, Safeway, Caterpillar,
Bank of America, MCI, Nortel, Oracle, BMW, Deutsche Telekom, Telecom Italia, and
ABN AMRO bank.
Doug Michels stated, "The time is right for Tarantella. During the current
slowdown in spending in the IT industry, Tarantella products can drastically cut
the cost of re-engineering applications by web-enabling them almost instantly
and providing centralized administration and control resulting in lower overhead
and reduced training costs. Tarantella Enterprise 3 software is an enterprise
IT department's answer to the myriad of difficult problems facing them today."
Tarantella, Inc. will be headquartered in Santa Cruz, California with major
development sites in the United Kingdom. There will be approximately 220
employees worldwide. The company is also changing the corporate logo and
corporate colors to reflect the new image. Their new web site is
www.tarantella.com.
About Tarantella, Inc.
Tarantella, Inc., provides a web-based solution that allows customers to regain
control of their IT environment. Tarantella Enterprise 3 software is the first
non-intrusive application and data centralization solution that simplifies
administration and securely speeds access to Windows, mainframe, AS/400, web-
based, Linux, Java and UNIX applications. For more information, please visit
http://www.tarantella.com.
About Caldera International, Inc.
Caldera International is the leader in Unifying UNIX with Linux for Business.
Caldera specializes in the development, deployment and management of UNIX and
Linux-based clients and servers. Based in Orem, UT, Caldera has offices and
15,000+ resellers worldwide. For more information on Caldera products and
services, visit http://www.caldera.com.
Tarantella, the Tarantella logo and The Santa Cruz Operation are trademarks or
registered trademarks of Tarantella, Inc. in the USA and other countries. UNIX
is a registered trademark of The Open Group in the US and other countries.
Caldera, "Unifying UNIX with Linux for Business", SCO, and SCO OpenServer are
trademarks or registered trademarks of Caldera Systems, Inc. or Caldera
International, Inc. in the US and other countries. Linux is a registered
trademark of Linus Torvalds in the US and other countries. All other products,
services, and companies, are or may be trademarks, registered trademarks or
servicemarks of their respective owners in the U.S. and/or other countries.
For SCO/Tarantella Investors
This release contains forward-looking statements, including statements regarding
the Company's expectations relating to increased demand for its products,
technologies and services, anticipated growth of its customer and partner base,
and the sale of the Company's Server Software and Professional Services
divisions to Caldera Systems, Inc., which are based on current expectations,
that involve risks and uncertainties. The Company's actual results may differ
materially from the results discussed in these
forward-looking statements. Factors that may contribute to such a difference
include, but are not limited to, changes in customer implementation plans,
conclusion or success of strategic opportunities, timely availability of
products, market acceptance of new products, including internet-related
products, the impact of competitive products, uncertainty in domestic and
international markets, risks of dependence upon third-party suppliers, impact
and success of industry partnerships, general market conditions including the
Company's ability to compete in the highly competitive and rapidly changing
marketplace, and other risks detailed from time to time in the Company's SEC
filings, including forms 10-Q and 10-K. The Company does not intend to update or
revise any forward-looking statements, whether as a result of events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
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