XANDROS ANNOUNCES RELEASE OF XANDROS
DESKTOP STANDARD 1.0

Delivers Award-winning Desktop to Broader Audience

New York, January 28, 2003 – Xandros®, provider of the award-winning Xandros Desktop™, today announced the release of the Xandros Desktop Standard Edition 1.0, in order to expand consumer choice and deliver the Xandros Desktop experience to a broader audience.

The new release is built upon the same code base as the original Xandros Desktop 1.0, now known as Xandros Desktop Deluxe, and shares much of its older sibling’s power, compatibility, and ease of use. Among its features are:

• The Xandros Installer
  
• The Xandros Enhanced Desktop
  
• Xandros File Manager
  
• The Mozilla Web suite
  
• The OpenOffice.org productivity suite
  
• Xandros Networks Updates
  
• Xandros User Forum support

Unlike Xandros Desktop Deluxe, Xandros Standard Edition cannot reallocate space from a Windows NTFS during the install, though it still can reallocate space from a FAT, VFAT, or FAT32 partition. By removing such Deluxe features such as CodeWeavers CrossOver Office and Plugin, the printed user guide, and the Technology Preview CD, Xandros Desktop can be made available at a terrific price. Xandros Desktop Standard provides one incident of e-mail installation support, as opposed to 30-day support with Xandros Desktop Deluxe.

The Xandros Desktop offers many Windows-type benefits – including ease-of-use and compatibility with the most popular Microsoft file formats – without the expensive and frequent hardware and software upgrades, system crashes and susceptibility to viruses for which Windows has become known. Xandros Desktop Standard is especially suited to users who are ready to commit to the open source future of OpenOffice.org, Mozilla, and other standards-compliant applications, and no longer need to run legacy Windows applications such as Microsoft Office, Internet Explorer, and Outlook.

"The initial response to Xandros Desktop Deluxe has been overwhelmingly positive," said Frederick Berenstein, Co-Chairman of Xandros. "We’re starting to change the way people think about desktop computing on a global basis. We also got strong feedback from potential corporate and individual customers who are ready to exit Microsoft’s proprietary world, with its closed formats and ever-escalating license fees. Xandros Desktop Standard was created to satisfy that demand."

Additional benefits of Xandros Desktop Standard include:

Compatibility: Xandros Desktop offers seamless interoperability with existing Windows, Unix, and Linux network environments, allowing for easy commercial deployment. Xandros’ powerful new file manager allows file sharing between local Linux and Windows computers, networked Windows clients, and a wide range of peripherals.

Ease of Use: Xandros Desktop installs in just five mouse clicks and offers dual boot functionality with Windows. Users already familiar with Windows applications have virtually nothing new to learn; Xandros applications look, feel and operate much like Windows.

Better Security: Based on Linux, Xandros Desktop provides better security than Windows because its fundamentally superior code structure makes it less susceptible to viruses. In addition, the open source nature of the code allows for constant testing and improvement by an international team of elite programmers.

Network Updates: Xandros Networks allows users to install system upgrades, security patches as well as new applications, games and utilities with a single mouse click.

While Linux-based operating systems have long been the standard for servers and large scale applications, Linux-based desktop operating systems have been difficult to install, cumbersome to use and incompatible with Windows – until now. Startling research by the Gartner Group predicts Linux desktop operating systems will grow from five percent of worldwide PC users to about 30% over the next four years, due in part to innovative solutions such as Xandros Desktop.

About Xandros

Xandros is the leading developer of cost-effective, installation-friendly, complete Linux-based operating environments offering Windows compatibility and unparalleled technical support. Xandros brings to market a complete solution that allows businesses, governments, and schools all over the world access to affordable computers and software.

Both Xandros Desktop Deluxe and Xandros Desktop Standard are available for purchase on the Xandros Web site. Xandros is headquartered in Ottawa, Canada. For more information, please visit www.xandros.com.

Xandros is a registered trademark of Xandros. Linux is a registered trademark of Linus Torvalds. Windows is a registered trademark of Microsoft Corporation in the United States and other countries. All other trademarks and registered trademarks are owned by their respective companies.