Xandros and Skype Ink Bundling Agreement

Walmart.com and Amazon.com to Carry Full Range of Easy-to-use Xandros Linux Desktops with Skype Internet Calling

BOSTON, MA, LinuxWorldExpo February 16, 2005 — Xandros, the leading developer of easy-to-use Linux solutions, and Skype, the Global Internet Telephony Company™, today announced an agreement to bundle Skype with the Xandros Desktop Operating System and promote low-cost Xandros Linux desktops and laptops with Skype Internet calling.

“Xandros and Skype offer products that both reduce costs and improve quality for consumers,” said Niklas Zennström, Skype CEO and co-founder. “Xandros-based computers, which sell for as low as $200 (USD), are expanding the market for technology and we’re thrilled to join a leader in the Linux market and together grow the global base for modern technology and Skype.”

"Our users want the latest features including VoIP," said Andreas Typaldos, Xandros CEO. "Skype delivers secure, crystal-clear Internet telephony, plus it’s simple to use, which makes it a perfect fit for our desktop solutions."

The co-marketing agreement will allow for mutual product promotion. Xandros will include SkypeOut vouchers with its latest SurfSide™ Linux suite, as well as with Xandros desktops and laptops sold through Walmart.com, Amazon.com, and other channels. SkypeOut is the pre-paid, premium offering that allows Skype users to call traditional phones around the world at local rates. Xandros customers will receive vouchers worth up to 120 minutes of SkypeOut calls. Skype to Skype calls are free for all users.

Terms of the deal were not disclosed.

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.

Xandros® is a registered trademark of Xandros Inc. Scalix is a trademark of Scalix Corporation. All other trademarks and/or registered trademarks are the property of their respective owners.

Contact for Xandros:

Xenia von Wedel
Terpin Communications Group
[email protected]
415.595.2030