Darl McBride, President and CEO

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Darl McBride, President and CEO
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Keynote Overview

• Company Updates
• Financial and Legal Updates
• Long Live UNIX
• Announcements at SCO Forum 2005
• Whats coming in 2005 2006 and beyond

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Company Updates
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Award Winning Global Reseller Program

• SCOs reseller program was recently awarded the
  coveted five star ranking for the third
  consecutive year by VARBusiness Magazine for
  excellence in its reseller programs

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SCO Has Delivered

• Two major upgrades to our UNIX operating systems

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2004 Most Searched For
Public Figure
Woman
Sports Figure
Company
Consumer Brand
Consumer Electronics
Retail Chain
See www.google.com/intl/en/press/zeitgeist.html
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Financial and Legal Updates
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Company Financials

• The UNIX business is operating profitably and
  generating cash
• SCOs management team anticipates core UNIX
  business profitability continuing throughout FY
  2005
• SCO and its legal team have capped legal expenses
• 2 million to be paid each quarter for 2 more
  quarters
• After December 2005, quarterly legal payments no
  longer incurred by SCO
• During the last financial call (Q2 2005) SCO
  reported
• Five consecutive quarters of UNIX profitability
• Added 800,000 to the companys cash position

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• Committed to continued profitability and cash
  generation in SCOs UNIX business

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Legal Update

• SCO vs. IBM
• Trial date set for February 2007
• Discovery continuing in the case
• Legal team preparing for deposition of IBMs
  Chairman and CEO, Sam Palmisano
• We look forward to having our claims heard before
  a jury in the near future

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Legal Update

• SCO vs. Novell
• Novell has twice filed motions to have our case
  against them dismissed
• The court has twice denied Novells motions
• Novell has filed counterclaims as expected which
  we will address with a filing in the near future
• Were now awaiting the courts scheduling order
  for the case and look forward to having our
  claims heard before a jury in the near future

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Legal Update

• SCO vs. AutoZone
• SCO submitted a report to the court in May 2005
  summarizing its discovery findings
• The discovery findings found copying of thousands
  of COFF files and programs designed to run on SCO
  OpenServer machines across AutoZones stores
• SCOs legal team is considering its next steps in
  the case

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SCOs Focus and Direction

• Innovation

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Long Live UNIXKey reasons to choose OpenServer 6
over Linux
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OpenServer 6 Costs Less

• SCO
• SCO OpenServer 6 Priced from 599 to 1399.
• Customers pay once for the product and run it
  for as long as they like.
• Linux
• The Linux bait and switch
• Linux distributors charge customers from 349 to
  2,499 every single year.
• Over five years, that same customer pays from
  1,745 to 12,495.

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SCO Has a Superior Kernel

• SCO
• OpenServer 6 includes
• UNIX System V Release 5 (SVR5) kernel
• The result of more than 25 years of high-end
  development work
• Proven track record of stability and reliability.
  
• Linux
• Linux is still young from an operating system
  perspective.
• Less stable
• More vulnerable

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OpenServer Has Better Security

• SCO
• SCO UNIX platforms had the lowest number of
  vulnerabilities of any operating system they had
  studied. SCO OpenServer 6 has all the latest
  security protocols and encryption systems.
• Linux
• Linux had the greatest number of security
  vulnerabilities with 65.64

• mi2g Studies
• Technology Risk Management Firm

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SCO Has a Customer-Driven Roadmap

• SCO
• Customer driven roadmap
• Public
• Planned
• Linux
• Loosely organized set of volunteers and vendors
• Disparate directions

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OpenServer 6 is Backward Compatible

• SCO OpenServer 6 customers get a stable
  operating system with full compatibility for
  applications back to the earliest versions of SCO
  OpenServer and Xenix.

SCO Backward Compatibility
Linux Built in Obsolescence
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SCO Allows You to Focus
Do you want to be an operating system vendor?

• SCO UNIX Ready to Run
• Linux High Maintenance
• Click HERE to Run Video

SCO UNIX allows you to focus on your core
competency
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SCO Owns and Warrantees its Products
SCO

• SCO owns all right, title and interest in the
  UNIX operating system1
• 1Novell/SCO Asset purchase agreement
  9/19/1995 (Check)

Linux
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SCO Owns and Warrantees its Products
IP Matters
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SCO is Unifying its Code Base

• SCO Consistency

Linux Forking
Yogi Berra
SCO is committed to a policy of converging and
unifying its code base as is evident with the
release of OpenServer 6
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SCO UNIX Legendary Reliability

• Customers value and trust a vendor whose
  products provide reliability and stability year
  after year.
• A good operating system is like a strong
  building foundation, you may not think about it
  everyday, but youre glad its there.

SCO 99.999 Linux ?
1 most lonely guy
2nd most lonely guy
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SCO Has an Award-Winning Support Team

• SCO
• Backs you up - kernel to finished product
• A support team that knows the product inside and
  out.
• Decades of experience
• Available around the world and around the clock.
• A support team that has access to the very
  development engineers who created the product.
• Linux
• A volunteer fire department support model?

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Announcements at SCO Forum 2005
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Organizational Updates

• Tim Negris
• Senior VP of Corporate Marketing
• Sandy Gupta
• CTO and VP of Engineering

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Announcements at SCO Forum 2005
A new strategic partnership with Cymphonix

• Joint sales, marketing, training and development
  agreement to provide Network Composer to SCO
  resellers direct accts
• Cymphonix to port Network Composer to SCO
  OpenServer 6
• Cymphonix currently working with Terian and
  SYNNEX through SCO to provide direct solutions to
  resellers and their customers

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OpenServer 6 Customer Success Story

• BIS Computer Systems, Inc.
• Upgrades to OpenServer 6
• Added 100 additional users to each server
• Previous month-end closing process 7 hours
• Today 1 hour
• Youll hear more from BIS later today

Seeing a tenfold increase in performance
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Announcements at SCO Forum 2005

• Maintenance Pack 1 brings multi-core processing
  to SCO OpenServer 6
• New SCO OpenServer 6 education curriculum now
  available
• New SCO OpenServer 6 customer support packs now
  available

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Whats Coming in 2005 2006 and Beyond
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Fusion
The development of SCOs next generation
64-bit UNIX operating system

• Melds the development paths of SCO OpenServer and
  UnixWare into one 64-bit UNIX OS
• Incorporates new UNIX SVR6 technology for server
  virtualization and virtual mobility

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The Foundation of SCO
Unequaled in Stability and Reliability
Leading Worldwide Operating Platform
Millions of Installed Servers Worldwide
Runs many of the worlds largest businesses
More than 3,000 UNIX Licensees
UNIX protected by strong confidentiality clauses
in contract
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Look for SCO to Expand its Reach Into New Markets
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Look for SCO to Expand its Reach Into New Markets
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Look for SCO to Expand its Reach Into New Markets
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Look for SCO to Expand its Reach Into New Markets
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Look for SCO to Expand its Reach Into New Markets
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In Summary
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In Summary

• Legal expenses are under control and we have the
  cash to see a conclusion to our current
  litigation
• Our claims continue being heard in a court of law
• The companys UNIX business is operating
  profitably
• SCO is investing in research and development for
  the future

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In Summary

• SCO OpenServer 6 is seeing good results and were
  hearing great feedback from customers, the media,
  analysts, and others
• Were delivering on our promises with new
  versions of SCO OpenServer and UnixWare
• We look forward to seeing success both in the
  marketplace and in the courtroom