Date: Tue, 17 Feb 1998 17:07:47 -0800
From: Brian Ziel <brianz@sco.COM>
Subject: SCO EXTENDS LEAD AS #1 UNIX SERVER SUPPLIER, BECOMES THIRD

FOR IMMEDIATE RELEASE                                          

PRESS CONTACTS:
Jean Bozman                                         Monika Laud 
IDC Company News                                    SCO Public Relations
Phone: 650-962-6429                                 Phone: 408-427-7421	
Email: jbozman@idcresearch.com                      E-mail: monikal@sco.com

SCO EXTENDS LEAD AS #1 UNIX SERVER SUPPLIER, BECOMES THIRD LARGEST SUPPLIER
OF ALL SERVER ENVIRONMENTS WORLDWIDE

IDC data show SCO increasing lead in UNIX server software market; 
SCO UnixWare shows fastest growth

SANTA CRUZ, CA (February 17, 1998) - Profiting from the continuing demand
for reliable, scalable network-based servers, SCO (NASDAQ: SCOC) today
announced that in 1997 it moved up from 4th to 3rd place in worldwide
shipments of server operating environments, achieving a significant
milestone in its quest to deliver the benefits of UNIX systems and Network
Computing to a wider audience 

According to a recent announcement by IDC, SCO shipped a total of 288,000
UNIX server software licenses in 1997, surpassing OS/2 with 226,000 unit
shipments. SCO shipped 27% more server software licenses than in 1996,
outpacing the overall UNIX growth rate of 15%, which has remained steady
since 1995. SCO's UnixWare operating system was also the fastest-growing
UNIX System, increasing by 45.7% from 1996 to 1997. In 1st and 2nd place
are Microsoft Windows NT Server and Novell NetWare servers.

"SCO's share of the UNIX server operating environments market grew
noticeably, climbing from around 36% in 1996 to over 40% in 1997, based on
preliminary data," said Jean Bozman, Research Manager, Server Operating
Environments, International Data Corporation. "We believe this was due to
continued strong demand for SCO OpenServer both as an application server
and as a Web server, and to increased demand for SCO UnixWare among
enterprise customers."

"We are excited to have overtaken OS/2 about a year earlier than expected,"
said Ray Anderson, SCO's senior vice president of product marketing. "We
increased our unit shipments in 1997 by adding value to our base products,
by offering products tailored to certain applications such as Web servers,
and by increasing our investments in training our channel partners. It
seems to be paying off. We shipped more units in 1997 than our top three
UNIX competitors combined. That says a lot for our UNIX on Intel products.
We're leaving the RISC vendors further behind each year."

SCO  UNIX servers - including SCO OpenServer, which dominates in replicated
sites and small business, and UnixWare, which provides RISC UNIX system
capabilities on the Intel platform - are available through a network of
more than 15,000 resellers and partners worldwide, and are supported by
major OEM suppliers including Compaq, Data General, Fujitsu/ICL, HP, IBM,
SNI, Unisys, and many others. UnixWare 7 is SCO's latest version of
UnixWare, the world's fastest growing UNIX System, according to IDC. Now
available in beta version, UnixWare 7 is SCO's advanced operating system
for network computing. It includes SCO's new SVR5 kernel technology,
designed to provide dramatic enhancements in overall performance,
scalability, availability and reliability on Intel servers, while providing
a smooth migration to future 64-bit systems. It also includes Java
technology-based administration, support for a Webtop interface, access to
a wide range of applications on different servers with SCO Tarantella
software, and optimized Java support.

About SCO
SCO is a leading provider of system software for business-critical network
computing on the Intel hardware platform, offering the world's most popular
UNIX server operating systems, and the world's first application broker for
Network Computing - Tarantella. SCO sells and support its products through
a worldwide network of distributors, resellers, systems integrators, and
OEMs. For more information, see SCO's WWW home page at http://www.sco.com. 
###
SCO, The Santa Cruz Operation, the SCO logo, SCO OpenServer, UnixWare,
Tarantella and the Tarantella logo are trademarks or registered trademarks
of The Santa Cruz Operation, Inc. in the USA and other countries UNIX is a
registered trademark of The Open Group in the US and other countries. Java
is a trademark of Sun Microsystems, Inc. All other brand or product names
are or may be trademarks of, and are used to identify products or services
of, their respective owners.