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CALDERA CREATES TWO WHOLLY-OWNED SUBSIDIARIES

Caldera Systems, Inc. to Increase Investments in Linux Business Solutions and Caldera Thin Clients, Inc. to Increase Investments in Compact Embedded Solutions

Orem, UT - Sept. 2, 1998 - Caldera® today announced the creation of two wholly owned subsidiaries; Caldera Systems, Inc. and Caldera Thin Clients, Inc. These companies will extend Caldera's investments in the Linux and Embedded OEM markets, respectively, to better serve Caldera's primary customers.

Bryan Sparks will remain President and CEO of Caldera, Inc.; Ransom Love was named as President and CEO of Caldera Systems, Inc.; and Roger Gross was named as President and CEO of Caldera Thin Clients, Inc.

"These extensions of Caldera, Inc. increase our focus and create more flexibility for additional investments to explore solutions currently missing from the markets we address," said Bryan Sparks, President and CEO, Caldera, Inc. "The ever­increasing popularity of Linux-based solutions for business encouraged us to create a company solely focused on these opportunities. Caldera's aggressive DR DOS technology advancements, including the creation of a graphical, DOS-based Web browser and e-mail client, creates a solution more compact and stable than competing embedded systems, like Windows CE."

Caldera Systems, Inc. will focus on Linux-based business solutions, training, service and support. Additions to Caldera's line of Linux-based products, including OpenLinux and NetWare for Linux, will be designed, developed and delivered through this subsidiary.

Caldera Thin Clients, Inc. will focus on thin client solutions for compact embedded devices, including Internet television set-tops, network computers, interactive kiosks, smart phones and Internet appliances. Additions to Caldera's line of embedded solutions, including DR DOS, DR-WebSpyder and the ICA thin client for DR DOS, will be managed through this subsidiary.

Caldera, Inc. and both subsidiaries will be headquartered in Orem, Utah. In addition, Caldera Systems, Inc. will maintain a development office in Erlangen, Germany; and Caldera Thin Clients, Inc. will maintain a development office in Andover, England and a sales office in Taipei, Taiwan.

Contact Information
Contact Caldera, Inc., at (801) 765-4999 or via E-mail at info@caldera.com.
Caldera Systems, Inc. can be reached at 888-GO-Linux [888-465-4689] or via E-mail at linux@caldera.com.
Caldera Thin Clients, Inc. can be reached at 888-GO-DR-DOS [888-463-7367] or via E-mail at thinclients@caldera.com.
Bookmark http://www.caldera.com to access the Web site for all three companies.

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Caldera, Inc., the parent company of Caldera Systems, Inc. and Caldera Thin Clients, Inc., was founded by Bryan Sparks in October 1994 as a start-up venture funded by Ray Noorda, former CEO of Novell®, Inc.

Caldera Systems, Inc. designs, develops and markets a line of Linux-based business solutions, including OpenLinux, Netware for Linux, technical training and support.

Caldera Thin Clients, Inc. provides compact solutions designed for the embedded OEM market, including DR DOS and DR-WebSpyder, a graphical, DOS-based Web browser and E-mail client.

Caldera and DR DOS are registered trademarks; and DR-WebSpyder, DR-System Builder Kit, DR-SBK and OpenLinux are trademarks of Caldera, Inc. All other products, services, companies and publications are trademarks or registered trademarks of their respective owners.

PRESS ONLY Contact:

Caldera Systems, Inc.
Nancy Pomeroy
nancy@caldera.com
Tel: (801) 373-7888
Fax: (801) 373-8680

Caldera, Inc. and Caldera Thin Clients, Inc.
Lyle Ball
lyle@caldera.com
Tel: (801) 765-4999 x305
Fax: (801) 765-1313

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