Turbolinux Acquires Zend Japan to Expand Deployment of Internet Linux Operating Systems in Asia.

TOKYO -- Turbolinux, Inc., a global leader of Linux-based solutions and Zend Japan Ltd., internationally recognized for its premier PHP applications, today announced the signing of an agreement to acquire Zend Japan for further Internet Linux deployment in the Asian market.

Under the terms of the contract negotiations concluded on March 30, Turbolinux acquired a ninety percent share (1,170 shares) of Zend Japan Ltd. from Open Source Japan, Ltd. Zend Japan will continue to serve as the exclusive distributor of Zend web application platform products in Japan.

"We are very pleased to welcome Zend Japan to the Turbolinux community," said Koichi Yano, president and CEO of Turbolinux, Inc. "Through this strategic acquisition, Turbolinux will continue to expand the exceptional features found in next-generation PHP and Turbolinux products and services to Linux users in the rapidly growing Asian marketplace."

Offered to users free of charge, the *PHP Hypertext Preprocessor is a programming language primarily used for developing web-based, database software applications. Included in most Linux computing platforms, including Turbolinux, PHP continues to gain momentum as the leading application for Internet system development in open source communities. Additionally, Zend Japan provides users with diverse services and education initiatives to endure enterprise-grade performance and reliability for mission-critical PHP applications using PHP.

"Zend Japan has joined Turbolinux, Inc. to further expand the Zend business in Japan. We plan to offer the Zend/PHP products and technical service as before," said Yoshiyuki Suzuki, CEO of Zend Japan Ltd. "There are many SI companies that deal with LAMP based systems and software but no company which offers those products in an integrated way. With Turbolinux, Zend Japan will closely plan and promote Turbolinux and Zend/PHP products and solutions and will be able to provide them in a comprehensive and stable format. In this dynamic alliance with Turbolinux and Zend Technologies, Zend Japan will offer products and service which cover the needs of the Japanese market," added Mr. Suzuki.

This synergistic collaboration will be of strategic value to the open source community in Asia. Turbolinux's expert sales and distribution channels provide several value-added services to existing PHP customers. Additionally, Turbolinux will serve as a Zend product vendor for Linux users not currently utilizing the Turbolinux OS. Regardless of the OS deployed, Turbolinux and Zend Japan intend to maximize the advantages of both companies in the Asian open source environment.

About Turbolinux, Inc.

Turbolinux develops and sells the leading Linux OS for distribution in Asia-Pacific. The operating system is optimized to run on a wide range of hardware platforms, including Intel-based servers and IBM mainframes. Turbolinux, with headquarters in Japan, plays a major role in developing Linux systems for the Japanese market, including Japanese and Chinese language "double-byte" text support. More than half of Turbolinux's staff is dedicated to Linux engineering development and support, providing expert support and custom application development services that go beyond Japanese localization issues. Turbolinux works extensively with standards bodies and partners to ensure certification and software compatibility in all business environments. For more information, visit www.turbolinux.com.

Zend is a trademark of Zend Technologies Ltd. Turbolinux is a trademark of Turbolinux, Inc. Linux is a trademark of Linus Torvalds. Asterisk is a trademark of Digium, Inc. All other product or service names are the property of their respective owners.