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VA Research Announces Strategic Acquisition and Corporate Reorganization

Apr 28, 1999, 10:04 (0 Talkback[s])

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New Name, VA Linux Systems Inc., to Reflect Growth Opportunities

  SUNNYVALE, Calif., April 28, 1999 - VA Research Inc., the leading provider of Linux systems and support, today announced that it has signed a letter of intent to acquire certain assets of Linux Hardware Solutions, and it has subsequently reorganized to focus on commercial products while aggressively furthering Linux research and development. As part of this, VA is changing its name to VA Linux Systems Inc. Underscoring VA's momentum are a consistent 300% growth rate in the number of products shipped, rapid expansion of new employees, and the opening of the company's new headquarters in Sunnyvale, CA.

VA plans to acquire certain assets of Linux Hardware Solutions (LHS), the #2 Linux hardware, software, service and support company. LHS President Kit Cosper will become the primary advisor for VA's service and support organization, reporting to VA vice president John Hall. He is chartered with overseeing customer support training and maintaining high standards of customer satisfaction. VA will keep some LHS operations in VA's Wilmington, North Carolina office to address its customers in the Southeast region. Financial terms of the deal were not disclosed at this time.

In a strategic reorganization that reflects VA's pending acquisitions and leadership position in Linux development, the company's Linux systems business will operate as VA Linux Systems (VA), while the company's research and development efforts will continue under the name VA Linux Labs. Both units will continue to report to Dr. Larry Augustin, president and chief executive officer of VA Linux Systems.

VA Linux Labs, headed by engineering vice president Gregg Zehr, is chartered with advancing state-of-the-art Open Source and Linux technology. Projects will include Project Trillian, VA's leadership port of Linux to Intel's next-generation IA-64 processor architecture. VA Linux Systems will commercialize VA Linux Labs' key contributions into revenue-based products. VA Linux Labs personnel will include Geoff "Mandrake" Harrison, a key figure in developing the next-generation graphical user interface for Linux, helping to make Linux a leading desktop environment; San Mehat, the architect of the Corel Netwinder, the first thin client for Linux; and Mark Vojkevich, a key longtime contributor to the Xfree86 windowing system used by Linux.

"VA's acquisition and reorganization demonstrate our commitment to Linux research and development. My personal goal has always been to create an environment where top Linux and Open Source developers can be rewarded for their contributions, and where those innovations can be crafted into superior products," said Dr. Larry M. Augustin, president and chief executive officer at VA Linux Systems. "By attracting some of the most talented engineers worldwide, VA continues to lead the market for what has become the fastest growing operating system."

"Linux Hardware Solutions and VA have long shared common principles and a vision of how to help the Linux Community achieve world domination," said Kit Cosper, CEO of LHS. "Joining forces made a lot of sense."

VA now employs over 100 people dedicated to bringing superior Linux solutions to customers. Underscoring VA's momentum are new company statistics supporting a 300% growth rate in products shipped, and the addition of a new headquarters building in Sunnyvale, California. VA's growth rate exceeds the estimated 212% growth statistics reported by IDC in its recent report on Linux.

VA Linux Systems is a leading provider of Linux-based hardware software, service and support solutions. The first Linux systems company in the world, VA is a pioneer in providing high performance workstations and servers to enterprises and is at the forefront of the open source revolution. VA also has the rights to the premier Linux portal, Based in Sunnyvale, Calif., the privately held company has been profitable since its formation in 1993 and has gained a reputation for innovation and responsiveness that is making it a leader in full service Linux solutions. For more information contact VA at, (888) LINUX-4U or by sending email to For more information on Linux, visit



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