Linux-Mandrake Expands Into China Market

MandrakeSoft Development Centers Open in Beijing and Shanghai Strategic Partners LinuxOne, Kingstar and iTRANS establish Distribution

Pasadena, California -- September 3, 1999 -- MandrakeSoft (www.linux-mandrake.com), the premier publisher of the popular Linux-Mandrake operating system, today announced the opening of two development centers in Beijing and Shanghai for working on world-wide Open Source projects with the support of LinuxOne, Kingstar and iTRANS. Also disclosed are its strategic partnerships with Kingstar (Shanghai Fudan Kingstar Co. Ltd.), the largest finance software company in China, and iTRANS, a privately-held company focused on the Linux.Isdn.Pc solution, publisher of Plinux "leading Chinese version of Linux". These alliances will distribute the Chinese version of Linux-Mandrake through their comprehensive network of Value-Added Resellers. MandrakeSoft's strategy offers multi-lingual Linux-Mandrake and positions it to become the global Linux company.

Linux-Mandrake continues to gain rapid acceptance in the United States and Europe where Open Source projects have been continuously managed. With these two new development centers in China, MandrakeSoft local developers will contribute to international Open Source projects and in the development of a worldwide version of Linux-Mandrake, ensuring the same high quality and success in China and, in turn, globally. In addition, Kingstar and iTRANS will rapidly distribute the integration of Linux-Mandrake with Plinux (the Linux Chinese version that is compatible with Red Hat). Both companies offer local language support and expertise that will facilitate MandrakeSoft's entry into the Chinese domestic market.

High- profile individuals are involved in this venture including Jess Kuang, Kingstar, and Yang Jun, iTRANS who co-founded the first Linux user group (http://www.linux.org.cn), as well as Wun Chiou, founder of LinuxOne who previously led NetUSA to a successful IPO.

"We are extremely pleased to enter into these partnerships with companies that share the same vision when it comes to collaborate on more international Open Source projects," said Daniel Morales, CEO, MandrakeSoft. "By teaming with LinuxOne, Kingstar and iTRANS, we are demonstrating our commitment to pursue global expansion and always being at the forefront of Linux technology by delivering a global Linux," added Daniel Morales, CEO, MandrakeSoft. "With these new development centers, and a well-adapted product integration, we will provide complete Linux solutions tailored to this specific market with optimal market support. It is also a new step towards ensuring our global presence and success."

About Linux-Mandrake
Linux-Mandrake is an easy-to-use Linux operating system that is appropriate for home or office use. Linux-Mandrake secured two awards at LinuxWorld Expo in August 99 for Best Product of the Year and Best Linux Distribution/Server, and was a finalist for the Linux Distribution/Client Award. Linux-Mandrake 6.0 features the Mandrake Touch, MandrakeSoft signature graphical interfaces that give users selected desktop icons including easy CD-ROM and floppy disk access and easy Internet upgrades using the Mandrake Update icon and features Pentium optimization. LinuxMall, the largest online reseller of Linux products, reports that Linux Mandrake was its best selling product in July 1999.

About MandrakeSoft
Founded on the Internet in 1998, MandrakeSoft publishes the user-friendly and popular open-source Linux Mandrake operating system that is compatible with the leading Red Hat Linux Distribution. MandrakeSoft is headquartered in both France and the US, with offices in Germany. Through its strategic partnership with MacMillan, Linux-Mandrake maintains thousands of contributors around the world. MandrakeSoft is the originator of several other innovative Open Source cooperative projects that focus on ease-of-use, including Lothar, an automatic hardware configuration, which allows users to install and use Linux directly on top of a Windows directory, and the DiskDrake hard-drive partitioning tool. For more information on Linux-Mandrake and additional products, please visit us at http://www.linux-mandrake.com

About LinuxOne(TM)
LinuxOne(TM), One Stop for Linux, provides world-class quality UNIX (Linux) software targeted to the server, workstation and home environments and is distinguished by the unchallenged availability of applications and platform support, ease of installation and use, support, and commitment to lead in the development of timely extensions that address the requirements of the market for new functionality that provides stability, security, and usability for the software. LinuxOne(TM) expects to become the highest rated supplier of Linux solutions based on packaging, support, and capability world-wide. LinuxOne is based in California.

About Kingstar (Shanghai Fudan Kingstar Co. Ltd.)
Kingstar (www.kingstargroup.com.cn) specializes in researching, developing finance (futures and securities), estate, commerce, hospital, files and multi-media software products. In addition, the company offers systems integration, product distribution and information service. By establishing branches and service offices in major cities including Beijing, Tianjing, Nanjing, Guangzhou and Shenzhen, Kingstar provides complete services and creates market expansion. As the largest finance software (futures and securities) providers in China, Fudan Kingstar owns more than 600 futures software and captured 60 percent of the total Chinese software market. In addition, Fudan Kingstar is the fifth largest multi-media company in China.

About iTRANS
Created in 1997, iTRANS Institute Inc. is a privately held commercial company focused on Linux.Isdn.Pc solution. ITRANS successfully brought TELES AG into the Chinese ISDN market, along with its Linux solutions. The company is the founder and main sponsor of www.linux.org.cn and founded the Shanghai Linux Professional Committee (SLPC), recognized by the Chinese government in August 1999. In August 1999, ITRANS announced its general network server called 1JT (www.1JT.com), in partnership with IBM, and AMD (Fareast). The company also distributes Plinux, a Linux version based on Red Hat that includes cutting-edge features like Pentium Optimization, ISDN support, strong cryptography, and poorman's Chinese user interface. For further information, please visit iTRANS: http://www.iTRANS.com.cn

# # # Linux is a registered trademark of Linus Torvalds. Mandrake and Linux-Mandrake are trademarks of MandrakeSoft . All other trademarks and copyrights are owned by their respective companies.

Caroline Carmagnol
Alizé Public Relations
650.323.1607
caroline@alizepr.com