Applix Launches VistaSource, Inc.; New Wholly-Owned Subsidiary Sets Sights On Becoming World's Leading Linux Application Innovator - On the Desktop and Over the Internet.

Business/Technology Editors

WESTBORO, Mass.--(BUSINESS WIRE)--April 24, 2000

In a move designed to focus and reinforce its division's position as one of the world's leading providers of Linux-based applications and technologies, Applix, Inc. (NASDAQ:APLX) today announced the separation of its Linux group into VistaSource, Inc., a new wholly-owned subsidiary, which is bolstered by a $6 million investment from its parent company.

VistaSource will build on its foundation as one of the leading pioneers and developers of Linux business applications, with an innovative business model designed to thrive in a world influenced by open source software. VistaSource provides Linux and ASP (Application Service Provider) software technology that enables customers to run applications directly off of the Internet or an intranet and also owns and operates several collaborative Linux websites.

The new subsidiary is led by an experienced, driven team of executives with a proven track-record in Linux technology. The team includes: Bernie Thompson, President, formerly head of Applix's Linux Division and Founder and CEO of Cosource.com; Barry Zane, Vice President of Research and Development, the prime architect of all Applix products since 1987; R. J. Grandpre, Vice President of Sales and Marketing, former Director of International Sales for Applix since 1994; Bernd Wagner, Vice President of European Operations and former manager at Racal-Redac and Dornier; and, John Amico, Vice President of Customer Service, an Applix customer support veteran since 1991.

"The continued strength of the Linux and Open Source communities have opened up an entirely new set of opportunities for us," said Alan Goldsworthy, Chief Executive Officer, Applix, Inc. "With Linux-based server market shares growing upwards of 93 percent, contract outsourcing reaching $180 billion and the ASP (Application Service Provider) market hitting $2 billion by 2003 - the market is clearly ready for the emergence of a strong company to address all of these businesses. By launching our Linux Division into a standalone subsidiary, Applix is officially introducing VistaSource, a company focused on these enormous opportunities."

"Since 1996, we've been one of the market's major Linux players," said Bernie Thompson, President, VistaSource. "With over $18 million in 1999 revenues ($1.5 million from Linux platforms), a global infrastructure and more than 200,000 licensed Linux users - the creation of VistaSource is a logical next step. No other vendor can bring to the table the breadth and depth of products and services offered by VistaSource - including a complete Linux office suite with source code available, our leading ASP technology and key offerings for the Open Source communities. Creating VistaSource gives us the focus and power we need to pioneer the Open Source savvy business model and technology strategy required to win in these new, growing markets for software."

VistaSource will operate under a blended licensing model referred to as "Source Access," which is different from Open Source in that it is designed to empower the customer by offering a number of source licensing options, while still being commercial software.

In conjunction with the launch, VistaSource officially released three core products based on Applixware 5.0. Applixware is the only commercial integrated Linux office suite to base its look and feel on open source interface technology through its adoption of the GTK+ technology. Additionally, version 5.0 provides closer integration for Linux desktops in the support for the dragging and dropping of files from the GNOME and KDE desktop environments into Applixware documents. Moving forward, VistaSource intends to market and brand their products to represent the new VistaSource brand.

As the company's primary product, Applixware Office for Linux is the company's premier offering - including Words (a full featured word processor), Graphics and Presents (for vector, bitmap and presentation editing and delivery), Spreadsheets (a robust and high performance spreadsheet), Mail (email interface) and Data (an interactive relational database browsing tool). The suite includes an extensive filtering capability which enables document exchange with Microsoft Office 2000(TM), Corel WordPerfect(TM) and other file formats. Applixware Office will be sold at an MSRP of U.S. $99. Also available is the company's Words for Linux and Spreadsheets for Linux, providing a lower cost entry for the product line. Each will be sold at an MSRP of U.S. $49.

About VistaSource Inc.

VistaSource, a wholly-owned subsidiary of Applix, Inc. (NASDAQ:APLX), headquartered in Westboro, MA, is a leading provider of productivity and analytic applications for the Linux and ASP markets. Applixware Office is the only office suite designed for and integrated with the Linux and UNIX environments. Applix SHELF is an Open Source application development and deployment system. Cosource.com is a leading Open Source marketplace. With Applix Anyware, applications are deployed to any standard web browser using Java. Smartbeak.com is the Linux customer support and collaboration web site. The Company's products are available on a variety of operating systems, including Linux (including Red Hat (NASDAQ:RHAT), SuSE, Caldera(NASDAQ:CALD), Turbo Linux) and UNIX (including Sun Microsystems Solaris (NASDAQ:SUNW), IBM AIX (NYSE:IBM) and Microsoft Windows (NASDAQ:MSFT). More information can be found at http://www.vistasource.com/

Notes to Investors

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially. Specifically, comments related to the demand for, revenue from and acceptance of the Company's products and the Company's position in the markets, may be considered forward-looking and subject to a number of risks and uncertainties, including but not limited to: the rate of growth in market demand for the products; the acceptance of the Company's products; intense competitive conditions; rapid technological change; frequent new product introductions and evolving domestic and international standards, which may render existing products and services obsolete. Refer to the Company's Form 10-K for the year ended December 31, 1999 for a list of factors as discussed under "Risk Factors." Applix does not undertake - and specifically declines any obligation - to publicly release the result of any revision which may be made to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events.

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