Brian Ziel
	TEL: 	831-427-7252


New SCO OpenServer to Ship with Top Streaming Technology and Improvements
for Network Computing and Windows Interoperability

SCO FORUM98, Santa Cruz, CA (August 17, 1998) - SCO (NASDAQ:SCOC) today
announced SCO OpenServer Release 5.0.5, the latest release of the world's
most popular commercial UNIX server system. 

SCO OpenServer 5.0.5 is the first operating system to integrate the
RealNetworks RealSystem Basic Server Plus 5.0 for streaming media across
the Internet or corporate Intranet. SCO has improved the server's network
computing support with a Dynamic Host Control Protocol (DHCP) server to
allow mobile users to easily access the network from any other corporate
location. The new release also supports the latest  Internet mail protocol,
IMAP4, and includes the latest Netscape client software. In addition, SCO
ensured excellent Windows interoperability with new versions of its Windows
to UNIX software.

"We have always had an incredibly strong product offering for the small and
medium business market, and the release of OpenServer 5.0.5 underscores our
commitment to moving this market forward," said Ray Anderson, senior vice
president of Marketing, SCO. "The fact that OpenServer provides
enterprise-class reliability, and multi-functional services for
applications, mail, and file/print services continues to make it one of the
world's best values for small and medium business computing."

Streaming Media for Information Delivery
SCO OpenServer 5.0.5 improves enterprise-wide communication by integrating
the RealNetworks RealSystem Basic Server Plus 5.0. Now businesses can serve
corporate information, training, or public information in audio and video
over the Internet or Intranet. SCO has also bundled the RealSystem Internet
Server 5.0 and RealSystem Intranet Server 5.0. These servers provide
expanded functionality over the basic server, which comes with a 10-stream
or 10-seat license, and can be licensed for up to a 1000 streams or 100

Improved for Network Computing 
Supporting its vision that network computing will power all businesses, SCO
has integrated technologies into SCO OpenServer 5.0.5 to help businesses
take advantage of the benefits of network computing. For example, SCO has
made it easier for mobile users within organizations to easily connect to
the corporate network and applications from remote locations. By
integrating a DHCP server, SCO OpenServer 5.0.5 dynamically creates IP
addresses when users log into the network from a new location. With this
capability, system administrators save valuable time and resource in
allocating IP addresses, and give users immediate access to information on
the corporate network.

SCO has also updated its email protocol to IMAP4, which improves
manageability of accessing email remotely by allowing users to filter email
on the server before it is downloaded to the client. This server-centric
approach saves users time and bandwidth when downloading email using a
modem from a remote location. 

SCO OpenServer 5.0.5 includes Netscape Communicator 4.0.5 client software,
and includes a series of integrated supplements and technology updates with
support for the latest hardware and audio/video drivers.

Commercial Open Systems, Inc. (COSI), a premier value-added Internet
Service Provider, voiced strong support for the new features in SCO
OpenServer 5.0.5.

"We have always considered SCO the best server platform on Intel. And, the
new SCO OpenServer 5.05 release confirms our evaluation," said Scott
Medlock, chief technical officer for COSI. "The integrated RealServer, DHCP
support, and driver enhancements mesh tightly with our use of OpenServer on
the Internet. We've looked at Solaris, Microsoft NT, Linux, and BSD for our
servers, but every time SCO surpasses the others with the rock-solid
stability, raw speed, and a clear administrative structure required for
24x7x365 business operations."

The Best UNIX to Windows Interoperability 
SCO server systems remain the premier UNIX platforms for integrating UNIX
and Windows systems. SCO OpenServer 5.0.5 improves on its Windows
interoperability that allows businesses to easily manage a mixed UNIX and
Windows environment. It includes SCO VisionFS 2.0, providing file and print
services from SCO servers to Windows PCs, as well as SCO TermLite 1.0.7 for
accessing traditional character-based UNIX applications in a Windows
environment. Also available is SCO Merge 4.0, which allows businesses to
run Windows 95 applications on  an SCO OpenServer system.

New Licensing Model
SCO OpenServer 5.0.5 can be licensed by distributors electronically,
streamlining customer delivery and improving inventory management. SCO
OpenServer 5.0.5 follows a company-wide move to an electronic licensing
model by separating the media from the license. Now SCO distributors and
VARs can provide more efficient customer delivery by simply downloading
licenses for the products their customers need. It also allows SCO and its
distributors to more effectively manage inventory, by removing physical
product from the channel. 

Pricing and Availability
SCO OpenServer Release 5.0.5 is scheduled to ship at the end of this month.
Suggested retail prices for licenses, in US dollars, starts at $699 for the
Host System and $1,399 for a 5-user Enterprise System. Please see for upgrade details and for more information on SCO
OpenServer 5.0.5.

About SCO
SCO is the world's number one provider of UNIX server operating systems,
and the leading provider of network computing software that enables clients
of all kinds - including, PCs, X terminals, NCs, and other devices - to
have Webtop access to business-critical applications running on servers of
all kinds. SCO designed Tarantella software, the world's first application
broker for network computing. SCO sells and supports its products through a
worldwide network of distributors, resellers, systems integrators, and
OEMs. For more information, see SCO's WWW home page at:

# # #

SCO, The Santa Cruz Operation, the SCO logo, Tarantella, the Tarantella
logo, SCO OpenServer, SCO TermLite, SCO VisionFS, and UnixWare are
trademarks or registered trademarks of The Santa Cruz Operation, Inc. in
the US and other countries. UNIX is a registered trademark of The Open
Group in the US and other countries. Netscape and Netscape Communicator are
trademarks or registered trademarks of Netscape Communications Corporation.
All other brand and product names are or may be trademarks of, and are used
to identify products or services of, their respective owners.