SCO ANNOUNCES STRATEGY FOR THE TELECOMMUNICATIONS MARKET

SANTA CRUZ, CA/SCO FORUM95 (August 21, 1995) - (NASDAQ: SCOC) Today at SCO
Forum95, SCO announced a major initiative to bring SCO's Business Critical
operating system technology and Windows Friendly capabilities to the
telecommunications industry. SCO intends to develop a line of
open-standard, "telecommunications class" operating system products that
provide telecom users with an alternative to the delay and cost of
implementing proprietary systems. These SCO operating system products will
support a wide range of applications such as telephone switching and
computer telephony integration, to support e-mail, voice mail, IVR, and
FAX.

Growth is strong throughout the telecommunications market, and there is a
distinct movement toward open standard computing platforms. The SCO
telecommunications operating system will offer an evolutionary path for
integrating the traditionally separate worlds of application servers and
communications switching systems.

Grover Righter, SCO's vice president of strategic marketing, said, "Switch
and PBX developers are looking for a standard, low-cost operating
environment.. Many telecom vendors are using SCO technology today, in
combination with their proprietary systems. They now realize
theopportunity for consolidating on a common operating system platform. We
are actively recruiting new vendors and developers who are moving to a
standard system in order to lower their developments and accelerate their
time to market."

Telecommunications Switches and PBXs

By integrating the latest microkernel technology from Chorus Systems and
SCO OpenServer Release 5, SCO is developing an open systems product line
that provides the reliability and deterministic features required by
telecommunications manufacturers. This product integration also provides a
migration path for their proprietary legacy systems. Switches and
associated application servers can use a common operating environment for
time-critical-processing applications such as voice/data switching or
voice mail systems. Here, SCO is working with leading industry and
technology providers to satisfy these needs.

About SCO

SCO is the world's leading provider of UNIX server and host systems, with
more unit shipments in 1994 than SunSoft's Solaris 1 and 2, IBM's AIX,
HP's HP-UX, and Novell's UnixWare combined (source: IDC, most current data
as of 12/94). SCO Business Critical Servers run the critical day-to-day
operations of large branch organizations in retail, finance, and
government, as well as corporate departments and small to medium-sized
businesses of every kind. SCO is also the leading provider of software
that integrates Windows PCs and other clients with servers from all of the
major UNIX System vendors. SCO sells and supports its products through a
worldwide network of distributors, resellers, systems integrators, and
OEMs.
 
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