Salt Lake City, UT -- Jan 10, 2000 -- Microsoft Corporation and Caldera, Inc. today announced that the parties have reached a mutually agreeable settlement of an antitrust lawsuit filed by Caldera in July 1996.

"We are pleased to put this issue behind us," said Tom Burt, General Counsel - Litigation for Microsoft. "Rather than litigating, we prefer to focus on building great software for our customers in this dynamic and competitive industry."

"We are pleased with the result of this lawsuit. We now look forward to vigorous competition in the marketplace with our Linux products and strategies both from Caldera Systems, Inc. and Lineo, Inc.," said Bryan Sparks, CEO of Caldera, Inc.

The terms of the agreement are confidential. Microsoft will record a one-time charge against earnings in the quarter ending March 31, 2000, which will reduce earnings per share approximately three cents.

Microsoft Corporation

Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software for personal and business computing. The company offers a wide range of products and services designed to empower people through great software - any time, any place and on any device

Caldera, Inc.

Caldera, Inc. the predecessor company of both Caldera Systems, Inc. and Lineo, Inc., was founded by Bryan Sparks in October 1994 as a start-up venture funded by Ray Noorda, former CEO of Novell©, Inc. Caldera Systems, Inc. develops a line of Linux-based e Business solutions, including OpenLinux, technical training and support. Lineo, Inc. develops embedded Linux system software and applications that provide OEMs with stable, low-cost software solutions for Internet appliances and other embedded devices.

For further information, press only:

Microsoft press contact:

Jim Cullinan
Tel: (425) 703-5913

Caldera, Inc. press contact:

Lyle Ball
Tel: (801) 426-5001x305