VA Linux Systems Introduces the World's First Online Build-to-Order Software.

Business Editors/High-Tech Writers

LinuxWorld Conference & Expo

SUNNYVALE, Calif.--(BUSINESS WIRE)--Aug. 14, 2000

VA Linux Systems, Inc. (Nasdaq: LNUX) today unveiled the world's first Build-to-Order Software configuration system enabling online customization of the operating system and applications ordered by VA Linux customers. Build-to-Order Software from VA Linux is the only solution that makes it possible for customers to point, click, select and save the specific Linux and Open Source software components they want pre-installed at the factory and delivered on their servers -- all via the Web. Starting today, VA Linux's Build-to-Order Software Selector (BOSS)(TM) on valinux.com offers a selection of over 700 software packages -- an unprecedented level of online configurability -- with hundreds more expected to be offered in the coming months.

By providing Build-to-Order Software, VA Linux Systems helps engineering and IT departments dramatically reduce the time and resources spent manually re-installing and re-configuring systems individually. Until now, almost all IT organizations have had to re-configure every server they purchase upon deployment in order to maximize security, add and delete software, and enhance the performance of the particular applications being used by various departments. For application service providers (ASPs), e-businesses and Internet hosting providers, the ability to customize and tune the performance of their Internet infrastructures can be key to establishing and maintaining competitiveness. When rolling out hundreds or even thousands of servers at a time, Build-to-Order Software from VA Linux Systems can offer savings of weeks or even months -- including reduced qualification time -- by moving custom configuration into VA's standard factory process.

"With Build-to-Order Software, VA Linux is revolutionizing the way that people order and manage their systems, and it's the very nature of Open Source software and VA's expertise that make this level of customization possible," said Dr. Larry M. Augustin, president and CEO, VA Linux Systems. "With Open Source, you're not forced to accept the one-size-fits-all software loads offered by any single vendor. With Build-to-Order Software, we help our customers harness the power of Open Source to stay ahead by delivering custom-configured solutions that allow them to focus their resources on core aspects of their business."

Recipes for Success

The Build-to-Order Software Selector on valinux.com offers background information on each software package and checks for existing dependencies among all selected packages to make sure that customers' selected configurations will work seamlessly. Once a customer submits an order, the configuration information is sent directly from the Web to the factory, where the software components are automatically installed onto the systems they have ordered in a matter of minutes. The pre-configured servers can then be delivered directly to the customers' data centers in the US or internationally. Customers' configurations can be saved online for future purchases. Most importantly, selections are fully supported by VA Linux Systems' Total Linux Coverage (TLC)(TM).

"VA Linux Systems is clearly addressing the needs of two important market segments with this announcement," said Dan Kusnetzky, vice president of system software research for IDC. "Users of Linux-based functional servers and organizations who are thinking about using Linux but fear they don't have the expertise to use it effectively will both find this approach to custom configuration of high volume systems attractive."

In the coming months, VA Linux Systems also plans to offer a host of recommended configurations for specific applications, such as web servers (optimized for various types of traffic), application servers, load-balancing servers, database servers (optimized for Oracle(R) or MySQL), caching servers, firewall servers, file servers, mail servers, print servers and many other options. The recommended solutions are intended to make it easy for customers to navigate through thousands of Open Source software packages by presenting them with "best practices" for each type of application that can be further customized if necessary.

A beta customer, 1stUp.com -- a majority-owned operating company of CMGI, Inc. and a leading provider of private label Internet access solutions -- plans to use VA's Build-to-Order Software Selector to improve efficiency as it grows its network infrastructure.

"As 1stUp.com begins to remotely manage new data centers across the globe, it's vital that we streamline the process of pre-configuring our systems to work within multiple international locations," said Ric O'Connell, vice president of engineering, 1stUp.com. "Implementing servers 'out of the box' equipped to power our network will save us days in implementation times."

A demonstration of the VA Linux Build-to-Order Software Selector (BOSS) is now online at www.valinux.com/boss.html, and systems can be ordered with both Build-to-Order Hardware and Software from VA's online store.

About VA Linux Systems

VA Linux Systems (Nasdaq: LNUX) is the world's Linux leader. The expert provider of Linux and Open Source solutions for the Web, VA Linux offers a single point of contact for highly customized Linux servers -- featuring the industry's first build-to-order software -- as well as professional consulting services and support. VA Linux Systems' mission is to make its customers successful through the use of Linux and Open Source -- whether they are e-businesses rapidly expanding their Internet infrastructures, or technology companies leveraging the power and methodology of Open Source software development. As part of its commitment to expanding the Open Source community, VA Linux Systems operates the Open Source Development Network (OSDN). A network of the leading Internet sites for Open Source development, distribution and discussion, OSDN includes SourceForge, Freshmeat.net, Slashdot and Linux.com. Founded in 1993 and headquartered in Sunnyvale, California with offices across North America and Europe, VA Linux is located on the Web at www.valinux.com.

International Data Corporation (IDC) recently ranked VA Linux Systems as a top four Linux server vendor in Q1 2000. VA Linux Systems was selected as one of Fortune Magazine's top "Cool Companies," Red Herring's "Top 100 Companies of the Electronic Economy" and Upside's "Hot 100 Companies" in 1999. VA Linux was awarded the 1999 Linux Journal Editors' Choice Award for Best New Hardware, and was the only company to win multiple "Show Favorite" awards at LinuxWorld Conference & Expo in March 1999 (in Computers and Science/Engineering) and again in February 2000 (in Hardware and Peripherals/Support Services).

Certain statements in this press release, including statements regarding the future functionality, business potential and adoption of Build- to-Order Software, the Build- to-Order Software Selector (BOSS), and the Open Source Development Network (OSDN); growth in adoption and support of the Open Source development model; and expansion of the range of Open Source software applications, are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different from expectations. Such risks and uncertainties include, but are not limited to, other companies' adoption of competitive processes and functionality; customer demand; the ability of VA Linux to attract and retain qualified personnel to perform software and web development; industry trends related to Open Source and Linux; and other risks detailed in VA Linux's filings with the Securities and Exchange Commission, copies of which may be accessed through the SEC's web site at www.sec.gov.

Note: VA Linux Systems , Total Linux Coverage (TLC), Build-to-Order Software Selector (BOSS), SourceForge, Slashdot and Freshmeat are trademarks of VA Linux Systems, Inc. Linux is a registered trademark of Linus Torvalds. All other trademarks are property of their respective owners.