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VA Research Announces Strategic Acquisition and Corporate Reorganization

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, Linux.com. 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 www.varesearch.com, (888) LINUX-4U or by
sending email to sales@varesearch.com. For more information on
Linux, visit www.linux.com.

 

 

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