Mandriva Signs Agreement to Acquire Linbox

Mandriva Signs Definitive Agreement to Acquire Linux Enterprise
Software Infrastructure Company Linbox


Paris, France, Sao Paulo, Brazil & San Diego, California, October 5,
2006. Mandriva, the global editor of Linux distributions, announced
today that it signed a definitive agreement to acquire Linbox FAS
("Linbox"). The agreement remains subject to shareholders approval.

Linbox was founded as Free and Alter Soft in 1996. Subsequently, it
acquired the assets of Linbox in 2001 and has been operating under the
Linbox FAS name since that time. Based in Lorraine and in Paris, the
company has 12 employees. 2005 revenues were $844,000 with
approximately break-even net results. For 2006, Linbox expects 20%
growth and a positive net result.

Active in both Open Source and Linux market for 10 years, Linbox
develops and markets software infrastructure administration products
for medium to large organizations. The software products marketed by
the company encompass authentication, back up and asset management,
and more. Linbox has two flagship products, Linbox Directory Server
("LDS") and Linbox Rescue Server ("LRS"). Its major customers include
Renault, EADS, Arcelor and multiple French ministries. Linbox has an
expert technical team based in Metz, approximately 2 hours from Paris
by high speed train.

The definitive agreement includes the acquisition of all shares of
Linbox for a total amount of $1.739 million in Mandriva stock, plus an
earn out of up to $401,000 based on the 2006 Linbox financials.

The acquisition is driven by the multiple synergies between the two
companies, particularly by the synergy between the Mandriva Pulse
enterprise software deployment and management product, and the Linbox
LRS and LDS authentication, back up, and asset management
solutions. The product sets are complementary, and substantial cross
selling on the installed bases is expected. The technical teams are
preparing a technology integration plan to create a more comprehensive
product offering. Finally, both companies are committed leaders in the
open source business community.

"This acquisition is consistent with Mandriva's external growth
plans. It reinforces our enterprise strategy, by enriching our product
and technology portfolio, and by bringing to critical mass our
enterprise team" said François Bancilhon, CEO of Mandriva.

"We look forward to joining the Mandriva team. This agreement will
allow us to address new customers and markets that we could not reach
because of our current size. It will also allow us to address
international markets" said Eric Thomas, CEO of Linbox.


About Mandriva

Mandriva, formerly known as Mandrakesoft, is the publisher of the
popular Mandriva Linux operating system, one of the most full-featured
and easy to use Linux systems. The company offers its enterprise,
government, and educational customers a complete range of GNU/Linux
and open source software and related services. Mandriva products are
available in more than 140 countries through dedicated channels and
also from Mandriva Store, the company's on line store. Founded in
1998, the company has offices in the United States, France and
Brazil. Mandriva is traded on Paris Euronext Marché Libre (ISIN Code:
FR0004159382/MLMAN; Reuters code: MAKE.PA). http://www.mandriva.com

Mandriva contact
François Bancilhon/Thierry Bossut
investors at mandriva dot com 
Phone +33 1 40 41 00 41

Linbox contact
Eric Thomas
+33 3 87 50 87 90

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