Acquisition strengthens Turbolinux leadership position for Linux server OS software in Japan and Asia-Pacific August 20, 2002 - San Francisco, Calif. and Tokyo, Japan - Turbolinux Inc., a worldwide leader in Linux operating environments and multi-platform server provisioning and management products, and Software Research Associates, Inc. (SRA), one of Japan's oldest and largest independent software houses, today announced that SRA has acquired the Linux software business from Turbolinux Inc. As a result of this acquisition, the worldwide Turbolinux Linux software business will become a division of SRA with headquarters in Tokyo, Japan and will retain the Turbolinux company name and product brand. Accordingly, Turbolinux Japan will change its name to Turbolinux Incorporated and will be responsible for the worldwide Linux business operation. SRA has appointed Hajime Watanabe as CEO and Koichi Yano as COO & President of Turbolinux. The former Turbolinux, Inc will retain the server provisioning software business based on the PowerCockpit product line and a new independent company is planned to be announced in the coming weeks.

SRA is committing to the Linux business to strengthen its position within the Asian market where Turbolinux is the market leader for Linux server operating systems, and promoting "UnitedLinux" in which Turbolinux is one of the founding members. While the headquarters operation has been relocated to Japan, Turbolinux Inc. will retain a U.S. office and all worldwide customers and partners of Turbolinux will see no disruption in service.

"The combined strength of SRA and Turbolinux will enable Turbolinux to focus on its growing Linux software business and capitalize on its founding member role within the UnitedLinux initiative", said Ryugo Marumori President of SRA "Our strategy over the past two years has been twofold: to redefine our business model in our Linux distribution business and concurrently create a new business centered around server provisioning to help automate the next generation data center", said Ly-Huong Pham, CEO of Turbolinux. "We have succeeded in putting our Linux business on the path of profitability, strengthened our presence in both China and Korea with key partnerships, and fortified our future Linux strategy with the co-founding of the UnitedLinux initiative. Turbolinux, combined with SRA's strength in the software industry, will further the Turbolinux lead as the number one Linux server operating system in the Asian market." Ly-Huong Pham continued, "I am also excited about the early success we have had with our PowerCockpit server provisioning software business. Over the last year, we have launched two major versions of our cross-platform product, established successful partnerships with HP and Egenera, and landed over a dozen enterprise accounts. I look forward to completing the formation, and the launch, of our new server provisioning software business. We expect to make an announcement regarding our new company in the coming weeks." About Software Research Associates, Inc.
Founded in 1967, Software Research Associates, Inc. (SRA) is one of Japan's oldest and largest independent software houses. Along with its traditional focus on custom software development, in recent years SRA has expanded its offerings to include services and products in the areas of open systems, multimedia, reengineering, mobile computing, outsourcing, and end-user computing. SRA provides consulting, custom software development, and system operation services for clients in industries as varied as public utilities, finance, manufacturing, and information processing. SRA maintains a strong presence in the software product market, distributing and supporting many communications, database, and Internet/World Wide Web applications. SRA has branches in major cities throughout Japan, as well as offices in New York, Colorado, California, and Europe. For more information, visit http://www.sra.co.jp.
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About Turbolinux
Founded in 1992, Turbolinux® Inc. is a global software company providing Linux operating environments and multi-platform software deployment and management products that enable computing assets to be quickly redefined on demand -- enabling true flexible processing power. For more information, visit the Turbolinux Web site at http://www.turbolinux.com.
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Turbolinux is a registered trademark of Turbolinux, Inc. Linux is a registered trademark of Linus Torvalds. All other registered trademarks belong to their respective holders.

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