June 5, 2002

Mandrake Newsletter: MandrakeSoft increase of capital

In only three years of development, MandrakeSoft has positioned itself as
one of the three leading worldwide Linux producers & publishers. Since the
company recentered its focus on Linux in April 2001, and despite a
difficult economic climate, the company has achieved solid increase in
revenues and cost reductions.
In order to preserve the company's growth while reaching the break-even
point before the end of the year, MandrakeSoft is currently conducting an
increase of capital with a special warrant system ("Rights Issue") that is
available to all MandrakeSoft shareholders.

When the Mandrake Linux Users Club was launched, many people expressed
their desire to become MandrakeSoft shareholders but complained that it was
difficult to do so. With this new operation, it is a fairly easy process
for everyone to buy MandrakeSoft shares once a current shareholder agrees
to transfer his warrants.

Several shareholders have agreed to transfer their rights for the new stock
in priority to Club Members. This means that any Club member who is
interested in becoming a shareholder can buy MandrakeSoft shares at a
special fixed price. The process is very simple: just sign a form, send the
funds, and receive the new shares.

Since the number of warrants is not unlimited, and the operation is for a
limited time only, the rule is "first come, first served".

Details of the operation are described here:
http://www.mandrakesoft.com/company/investors/bsa

For Club members, the process is described here:
http://www.mandrakeclub.com/article.php?sid=34&mode=nocomments

To learn more about the Club:
http://www.mandrakelinux.com/en/club/

More about MandrakeSoft's position on the Linux market is available at:
http://www.mandrakesoft.com/company/investors/bsa/position

What is the value of MandrakeSoft? Many Questions/Answers about the offer
are available at:
http://www.mandrakesoft.com/company/investors/bsa/faq

Click Here!