Microsoft and Xandros Expand Collaboration

NEW YORK, NY and REDMOND, WA--(Marketwire - August 15, 2007) - Today, Microsoft Corp. and Linux platform provider Xandros announced a messaging protocol license and collaboration agreement that will enhance the interoperability of Scalix email servers with various mobile and personal computer-based email applications that utilize Microsoft® email protocols. This agreement expands on the ongoing Microsoft-Xandros collaboration.

Both companies' commitment to protocol licensing and technical cooperation will help to provide more email choices and value. By continuing their focus on mixed-source solutions, Xandros and Microsoft are demonstrating how protocol-level collaboration can benefit customers who rely on a mix of Windows®-based and Linux systems.

By licensing the Microsoft Exchange ActiveSync® protocol and the Outlook® Exchange Transport Protocol, Scalix Mail Servers can now synchronize data over wireless networks with Microsoft Exchange Server as well as various email clients that use these and other Microsoft protocols.

"The expansion of our agreement with Xandros is a strong example of how collaboration through intellectual property licensing can foster innovation that benefits the overall IT ecosystem," said Horacio Gutierrez, Vice President, Intellectual Property and Licensing at Microsoft.

"Today's enterprise users 'on the go' employ a plethora of mobile messaging devices to access a mix of Linux and Windows-based messaging systems," said Andreas Typaldos, CEO of Xandros. "With the ubiquity of Windows Mobile®-based Smartphones, this agreement will enable us to provide the same range of Scalix connectivity choices for users of desktop, laptop, and handheld devices that they currently enjoy with Microsoft Exchange. With this new Scalix interoperability, Microsoft and Xandros enable companies to freely implement a broad range of proprietary and open systems and devices."

The agreement is focused on two areas of protocol licensing:

--  Exchange ActiveSync protocol. Xandros will be given the specification
    and documentation license necessary to develop a server-side implementation
    of the Exchange ActiveSync protocol. Such implementation would provide
    organizations with the ability to enable mobile, "over-the-air" access to e-
    mail messages, calendars, contacts, tasks lists, and other mailbox data.
    
--  Outlook-Exchange Transport Protocol. Xandros will be given the
    specification and documentation license necessary to develop a server-side
    implementation of the Outlook-Exchange Transport Protocol 2007. Such
    implementation will provide organization with better mediation options
    between client applications and the Scalix Mail Server.
    

For Xandros, the agreement is another milestone in its strategic vision to deliver a complete Linux stack, including desktops, servers, Windows-Linux cross-platform management tools and mission-critical applications, in order to provide single vendor support for diverse and growing enterprise IT infrastructures, and to make certain that its stack is interoperable and integrates within existing customer IT infrastructure ecosystems, for both platforms, applications, and messaging.

For Microsoft, the agreement is the latest in a series of efforts to encourage the development of interoperable solutions between Microsoft software and open source software.

About Scalix

Scalix, an independently operated 100% owned Xandros subsidiary, is the premier Linux e-mail, calendaring and messaging company. Scalix allows companies to reduce the cost and complexity of messaging with a field-proven collaboration platform based on Linux, open standards, and open source. The Scalix products provide flexibility and freedom of choice, helping enterprises achieve independence from vendor, technology and licensing lock-in. With over one million mailboxes deployed, 140,000 Community Edition downloads, 5,500 community forum members and 675 corporate customers, Scalix Collaboration Platform is the most field-proven Linux e-mail and group calendaring solution available to enterprises. For more information, please visit www.scalix.com.

About Xandros

Xandros, Inc. is the leading provider of intuitive, end-to-end Linux solutions, including consumer and business desktops, SMB and enterprise servers, mixed-environment management tools, and mission-critical applications. Xandros pioneered low cost, graphical operating systems that leverage existing skill sets and provide seamless Windows-Linux interoperability. Its servers and management tools feature workflow automation and "single pane of glass" remote deployment and administration. The company is headquartered in New York with research and development facilities in Ottawa and Mumbai, and sales and support offices worldwide. For more information, please visit www.xandros.com.

About Microsoft

Founded in 1975, Microsoft (NASDAQ: MSFT) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Contact Information: Xandros Contact: Xenia von Wedel Terpin Communications (415) 595-2030 Xandros Customer service: 1-212-213-8083 Microsoft Contact: Rapid Response Team Waggener Edstrom Worldwide for Microsoft (503) 443-7070