VA Linux expands its kernel business

VA Linux Announces the Expansion of Its Linux Kernel-related 
Business and Services

-- Aggressive Hiring of Skilled Linux Kernel Engineers and Unique
Failure / Performance Analysis Services for Enterprise Systems Will
Assure the Sustainable Growth of the Company in the Future --

Tokyo, JAPAN - November 10, 2004 -- VA Linux Systems Japan K.K. (VA
Linux), Japan's leading Linux and Open Source solutions provider,
announced today that it will expand its organization and professional
services to take steps to meet the striking growth of Linux
Kernel-related business.

In March 2002, VA Linux started full-scale business focused on the
development of Linux Kernel and related technical consulting services.
Since then, VA Linux has been accumulated rich experience in
analyzing; improving and performance-tuning every aspects of Linux
Kernel such as the scheduler, the VM, file systems, TCP/IP and so on.
Thanks to these efforts, VA Linux could succeed to be firmly rooted in
the field of the entrusted development projects and consulting for 
enterprise systems in Japan, and had great success.  In 2003, 
VA Linux acquired several large deals with renowned companies, and 
the sales in the 2003 business year achieved a 148% increase. 
In 2004, VA Linux started several new projects include developing 
failure analysis tools for Linux, and it forecasts that the current
year will enjoy a remarkable 120% sales increase compared with the 
2003 business year.

Taking these achievements in consideration, VA Linux plans to expand
its corporate organization and professional services to assure the
steady growth in forthcoming 2005 and beyond.  VA Linux intend to
employ more advanced Kernel engineers and enrich professional services
specialized in failure and performance analysis for enterprise
systems.

At present, VA Linux has 15 Linux Kernel specialists.  VA Linux plans
to seek and hire even more experts who have a thorough knowledge and
rich experience of developing UNIX and/or mission-critical backbone
operating systems.  The number of the staff will increase twice to the
current figure within the 2005 business year.

With this enlargement of personnel, VA Linux will continue to pursue
the business as before, such as development on commission or
consulting services in general.  Besides, VA Linux will find a new
market for its brand-new failure / performance analysis services, and
actively approach wider range of prospects such as companies who
concentrate on product development for the enterprise or other
specialized markets, vendors who supply enterprise-level systems, user
corporations such as network providers, public institutions and so
forth.  These moves will enable VA Linux to grow even more rapidly in
the 2005 business year.

"VA Linux has many distinguished programmers with complete
understanding of software development in general, including Linux
Kernel or other operating system internals.  They are now positively
involved with the actual, worldwide Linux Kernel development
process", said Tetsuya Ueda, president and CEO at VA Linux on this
release.  "In Japan, VA Linux already enjoys high reputation as the
peerless professional company.  However, we still keep vigorously
seeking exceptionally talented hackers and pursue more growth."


About VA Linux Systems Japan K.K.

Founded in September 2000, VA Linux Systems Japan K.K. (VA Linux),
which has based its operations on the development of Linux and Open
Source, has become one of the premier providers of Linux Kernel,
technological, and software solutions in the Japanese domestic
market. From March 2004 onward, VA Linux has been the recipient of
funding from NTT Comware and NTT Data. VA Linux is currently at the
forefront of implementing Linux solutions for telecommunication and
enterprise system markets.  http://www.valinux.co.jp/en/


SOURCE: VA Linux Systems Japan K.K.

Contact

Orie Tsuzuno
Public Relations
VA Linux Systems Japan K.K.
Tel: +81-3-3293-5151
Fax: +81-3-3293-5152
E-mail: mktg at valinux.co.jp