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Darl McBride , President and CEO

Darl McBride , President and CEO. Keynote Overview. Company Updates Financial and Legal Updates Long Live UNIX Announcements at SCO Forum 2005 What’s coming in 2005 – 2006 and beyond. Company Updates. Award Winning Global Reseller Program.

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Darl McBride , President and CEO

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  1. Darl McBride, President and CEO

  2. Keynote Overview • Company Updates • Financial and Legal Updates • Long Live UNIX • Announcements at SCO Forum 2005 • What’s coming in 2005 – 2006 and beyond

  3. Company Updates

  4. Award Winning Global Reseller Program • SCO’s reseller program was recently awarded the coveted five star ranking for the third consecutive year by VARBusiness Magazine for excellence in its reseller programs

  5. SCO Has Delivered • Two major upgrades to our UNIX operating systems

  6. 2004 Most Searched For… Public Figure Woman Sports Figure Company Consumer Brand Consumer Electronics Retail Chain See: www.google.com/intl/en/press/zeitgeist.html

  7. Financial and Legal Updates

  8. Company Financials • The UNIX business is operating profitably and generating cash • SCO’s management team anticipates core UNIX business profitability continuing throughout FY 2005 • SCO and its legal team have capped legal expenses • $2 million to be paid each quarter for 2 more quarters • After December 2005, quarterly legal payments no longer incurred by SCO • During the last financial call (Q2 2005) SCO reported • Five consecutive quarters of UNIX profitability • Added $800,000 to the company’s cash position

  9. Committed to continued profitability and cash generation in SCO’s UNIX business

  10. Legal Update • SCO vs. IBM • Trial date set for February 2007 • Discovery continuing in the case • Legal team preparing for deposition of IBM’s Chairman and CEO, Sam Palmisano • We look forward to having our claims heard before a jury in the near future

  11. Legal Update • SCO vs. Novell • Novell has twice filed motions to have our case against them dismissed • The court has twice denied Novell’s motions • Novell has filed counterclaims as expected which we will address with a filing in the near future • We’re now awaiting the court’s scheduling order for the case and look forward to having our claims heard before a jury in the near future

  12. Legal Update • SCO vs. AutoZone • SCO submitted a report to the court in May 2005 summarizing its discovery findings • The discovery findings found copying of thousands of COFF files and programs designed to run on SCO OpenServer machines across AutoZone’s stores • SCO’s legal team is considering its next steps in the case

  13. SCO’s Focus and Direction • Innovation

  14. Long Live UNIXKey reasons to choose OpenServer 6 over Linux

  15. OpenServer 6 Costs Less • SCO = • SCO OpenServer 6: Priced from $599 to $1399. • Customers pay once for the product and run it for as long as they like. • Linux = • The Linux “bait and switch” • Linux distributors charge customers from $349 to $2,499 every single year. • Over five years, that same customer pays from $1,745 to $12,495.

  16. SCO Has a Superior Kernel • SCO = • OpenServer 6 includes: • UNIX System V Release 5 (SVR5) kernel • The result of more than 25 years of high-end development work • Proven track record of stability and reliability. • Linux = • Linux is still young from an operating system perspective. • Less stable • More vulnerable

  17. OpenServer Has Better Security • SCO = • SCO UNIX platforms had the lowest number of vulnerabilities of any operating system they had studied. SCO OpenServer 6 has all the latest security protocols and encryption systems. • Linux = • Linux had the greatest number of security vulnerabilities with 65.64% mi2g Studies Technology Risk Management Firm

  18. SCO Has a Customer-Driven Roadmap • SCO = • Customer driven roadmap • Public • Planned • Linux = • Loosely organized set of volunteers and vendors • Disparate directions

  19. OpenServer 6 is Backward Compatible • SCO OpenServer 6 customers get a stable operating system with full compatibility for applications back to the earliest versions of SCO OpenServer and Xenix. SCO = Backward Compatibility Linux = Built in Obsolescence

  20. SCO Allows You to Focus • SCO UNIX = Ready to Run • Linux = High Maintenance • [Click HERE to Run Video] Do you want to be an operating system vendor? SCO UNIX allows you to focus on your core competency

  21. SCO Owns and Warrantees its Products • “SCO owns all right, title and interest in the UNIX operating system1” • – 1Novell/SCO Asset purchase agreement – 9/19/1995 (Check) SCO = Linux =

  22. SCO Owns and Warrantees its Products IP Matters

  23. SCO is Unifying its Code Base • SCO = Consistency Linux = Forking Yogi Berra SCO is committed to a policy of converging and unifying its code base as is evident with the release of OpenServer 6

  24. SCO UNIX: Legendary Reliability • Customers value and trust a vendor whose products provide reliability and stability year after year. • A good operating system is like a strong building foundation, you may not think about it everyday, but you’re glad it’s there. SCO = 99.999% Linux = ? #1 most lonely guy #2nd most lonely guy

  25. SCO Has an Award-Winning Support Team • SCO: • Backs you up - kernel to finished product • A support team that knows the product inside and out. • Decades of experience • Available around the world and around the clock. • A support team that has access to the very development engineers who created the product. • Linux: • A “volunteer fire department” support model?

  26. Announcements at SCO Forum 2005

  27. Organizational Updates • Tim Negris • Senior VP of Corporate Marketing • Sandy Gupta • CTO and VP of Engineering

  28. Announcements at SCO Forum 2005 A new strategic partnership with Cymphonix • Joint sales, marketing, training and development agreement to provide Network Composer to SCO resellers & direct accts • Cymphonix to port Network Composer to SCO OpenServer 6 • Cymphonix currently working with Terian and SYNNEX through SCO to provide direct solutions to resellers and their customers

  29. OpenServer 6 Customer Success Story • BIS Computer Systems, Inc. • Upgrades to OpenServer 6: • Added 100 additional users to each server • Previous month-end closing process — 7 hours • Today — 1 hour • You’ll hear more from BIS later today Seeing a tenfold increase in performance

  30. Announcements at SCO Forum 2005 • Maintenance Pack 1 brings multi-core processing to SCO OpenServer 6 • New SCO OpenServer 6 education curriculum now available • New SCO OpenServer 6 customer support packs now available

  31. What’s Coming in 2005 – 2006 andBeyond

  32. Fusion The development of SCO’s next generation 64-bit UNIX operating system • Melds the development paths of SCO OpenServer and UnixWare into one 64-bit UNIX OS • Incorporates new UNIX SVR6 technology for server virtualization and virtual mobility

  33. The Foundation of SCO Unequaled in Stability and Reliability Leading Worldwide Operating Platform Millions of Installed Servers Worldwide Runs many of the world’s largest businesses More than 3,000 UNIX Licensees UNIX protected by strong confidentiality clauses in contract

  34. Look for SCO to Expand its Reach Into New Markets

  35. Look for SCO to Expand its Reach Into New Markets

  36. Look for SCO to Expand its Reach Into New Markets

  37. Look for SCO to Expand its Reach Into New Markets

  38. Look for SCO to Expand its Reach Into New Markets

  39. In Summary

  40. In Summary • Legal expenses are under control and we have the cash to see a conclusion to our current litigation • Our claims continue being heard in a court of law • The company’s UNIX business is operating profitably • SCO is investing in research and development for the future

  41. In Summary • SCO OpenServer 6 is seeing good results and we’re hearing great feedback from customers, the media, analysts, and others • We’re delivering on our promises with new versions of SCO OpenServer and UnixWare • We look forward to seeing success both in the marketplace and in the courtroom

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