March 1, 2001

Caldera Systems reports first quarter results

Author: JT Smith

OREM, UT-February 28, 2001- Caldera Systems, Inc. (Nasdaq: CALD), a "Linux for Business" leader, today reported revenue of $1.1 million for the three months ended January 31, 2001, a 90 percent increase over revenue of $553,000 for the comparable three-month period of the previous fiscal year and a 10 percent decrease from revenue of $1.2 million for the prior quarter ended October 31, 2000. The Company reported a net loss for the three months ended January 31, 2001 of $9.8 million, or $0.25 per common share, compared with $15.5 million, or $0.63 per common share, for the same three-month period of the previous fiscal year and $6.9 million, or $0.18 per common share, for the three-month period ended October 31, 2000.

The net loss for the current quarter included a one-time cost sharing charge relating to the SCO acquisition of $602,000, whereas the comparable quarter for the prior fiscal year included a $10 million charge for dividends.

"Strategically we are moving to a more economic model of Business to Business, including corporate and OEM partnerships and strategic alliances," said Ransom Love, president and CEO of Caldera Systems, Inc. "Corporate sales are growing and corporate and OEM sales have surpassed retail sales."

First Quarter 2001 Company highlights include:

· Caldera Ships Caldera Volution - the First Comprehensive Linux Management Solution
· Caldera and SCO Expand Acquisition Agreement to Include SCO OpenServer Technology
· Caldera OpenLinux eServer Preloaded on Compaq-ProLiant Servers
· Caldera Sponsors Samba Client Library Development Conference Call

Caldera Systems will host a conference call at 5:00p.m. EST today, February 28, 2001 to discuss first quarter results. To participate in the teleconference, please call 1-800-289-0437, confirmation code 761543, approximately five minutes prior to the time stated above. A Webcast replay will be available approximately 4 hours following the end of the call.

Caldera Systems, Inc.

Caldera Systems, Inc. (Nasdaq: CALD) is a "Linux for Business" technology leader in developing and marketing successful Linux-based business solutions, including its award-winning OpenLinux, NetWare for Linux, Linux technical training, certification and support-with free 30-day phone support and on-site consulting. Caldera OpenLearning Providers offer exceptional distribution-neutral Linux training and certification based on Linux Professional Institute (LPIÃ) certification standards. Caldera Systems supports the open source community and is a leader in, and advocate of Linux Standard Base (LSBa) and LPIO.

Caldera, Inc. was co-founded in 1994 by Ransom Love. Caldera Systems, Inc. was founded by Ransom Love in 1998 to develop Linux-based business solutions. Based in Orem, UT, Caldera Systems has offices and 1000+ resellers worldwide. For more information, see www.calderasystems.com or in the US call 888-GO-Linux (888-465-4689).

Caldera is a registered trademark of Caldera Systems, Inc. All other products, services, companies, events and publications are trademarks, registered trademarks or servicemarks of their respective owners in the U.S. and/or other countries.

LINUX is a registered trademark of Linus Torvalds. UNIX is a registered trademark of The Open Group.

Forward Looking Statements

The statements set forth above include forward-looking statements that involve risks and uncertainties. We wishe to advise readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include the possibility that the acquisition of the SCO server and professional services businesses might not be consummated, which would affect the Company's ability to transition to a business to business model as discussed above; the Company's possible need to raise additional funds in order to carry out its business plan, especially in light of increased capital needs as a result of the proposed acquisition of the SCO server and professional services businesses; our reliance on developers in the open source community; new and changing technologies and customer acceptance of those technologies; the Company's ability to compete effectively with other companies; ; unenforceability of the GNU general public license; our reliance on third party developers of components of our software offerings; claims of infringement of third-party intellectual property rights; and disruption in the Company's distribution sales channel. These and other factors, which could cause actual results to differ materially, are also discussed in the Company's filings with the Securities and Exchange Commission, including its recent filings on Form S-4 and its annual report on Form 10-K.

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