[biz.sco.announce] Lotus and SCO reach out-of-court settlement in copyright dispute

timr@sco.COM (Tim Ruckle) (06/19/91)

                 LOTUS AND SCO REACH OUT-OF-COURT SETTLEMENT
                            IN COPYRIGHT DISPUTE

               Industry Leaders Join in Assuring SCO Users of
           Seamless Spreadsheet Product Migration into the Future


CAMBRIDGE, Mass., June 17, 1991  --  Lotus Development Corp. and The Santa
Cruz Operation, Inc. (SCO) today announced that the companies have reached
an out-of-court settlement in Lotus' copyright infringement suit against
SCO.

Under terms of the settlement, Lotus will drop its suit against SCO, and
SCO will stop manufacturing, distributing and licensing all versions of
SCO Professional by August 15, 1991.  SCO will recommend that users of
SCO Professional, the company's spreadsheet software, migrate to Lotus
1-2-3 for UNIX System V, which supports SCO UNIX System V/386, SCO Open
Desktop, and SCO XENIX 386.

Lotus simultaneously announced an upgrade program under which users of SCO
Professional can migrate to a multi-user version of 1-2-3 for UNIX System V
for a suggested retail price of $395.  In addition, Lotus and SCO will work
together to promote Lotus 1-2-3 to SCO's worldwide customer base and to
substitute Lotus 1-2-3 for SCO Professional in pending channel commitments to
end-users.  SCO will provide maintenance support to current SCO Professional
users, although no further product enhancements will be provided.

``We are very pleased to have resolved this matter to our satisfaction without
the burden of further litigation,'' said Thomas Lemberg, vice president and
general counsel at Lotus.  ``This settlement is good news for the two
companies involved, and for millions of customers in the UNIX marketplace who
will benefit from the companies' continued collaborative efforts.''

Lotus filed suit against SCO and Borland International in July 1990, charging
the defendants deliberately copied the user interface, in particular the
command menus and menu structure of Lotus 1-2-3.

``This out-of-court settlement is in the best interests of SCO, Lotus, and our
shared customers,'' said Doug Michels, executive vice president of SCO.  ``We
are happy to have resolved this dispute by reaching a mutually satisfactory
compromise with Lotus, one of our most important business partners.''

``Since SCO will not enhance SCO Professional, we are recommending that SCO
Professional users migrate to Lotus 1-2-3 for UNIX System V which runs on all
SCO 386- and 486-based operating systems.  Lotus 1-2-3 is the world's most
popular spreadsheet product and we are looking forward to working closely with
Lotus over time to maximize 1-2-3's value on SCO's open system
platforms,'' added Michels.

David Rome, director of UNIX Products at Lotus said, ``By 1995, UNIX could
represent as much as one-third of new desktop operating systems worldwide.  We
are looking forward to working with SCO to expand the UNIX desktop market and
to ensure that Lotus 1-2-3 for UNIX System V takes full advantage of the
capabilities provided by SCO's operating systems.''


CONTACT:

Bryan Simmons
Lotus Development Corporation
617 693-1697

Zee Zaballos
The Santa Cruz Operation, Inc.
408 425-7222


The Santa Cruz Operation, Inc., is a privately held company recognized
internationally as the worldwide leader in open system software solutions for
industry-standard hardware platforms.  SCO offers a wide range of UNIX System
software solutions, including the SCO Open Desktop and SCO UNIX System V
operating systems, the SCO MPX performance extension for multiprocessor
computers, complementary business and development products, and comprehensive
training and support services.  To date, SCO has shipped over 450,000 UNIX
Systems - more than any other vendor - and fields one of the largest
UNIX System technical teams in the world.  Founded in 1979, SCO maintains
international headquarters in Santa Cruz and London, and major regional
offices in Paris, Frankfurt, Milan, Copenhagen, Sydney, Singapore, Tokyo, Sao
Paulo, and Mexico City.

Lotus Development Corp.  (NASDAQ:LOTS), founded in 1982, develops, markets and
supports business software and CD-ROM databases that help users access,
analyze, communicate and share information.  The company's first product,
Lotus 1-2-3, is the most popular personal computer software program in the
world with more than 14 million users.  Lotus markets its broad range of
products in more than 65 countries and offers users comprehensive support
options, including 24-hour-a-day, 7-day-a-week support in the U.S.  for PC
versions of its 1-2-3 spreadsheet.  Lotus 1-2-3 for UNIX System V has
supported SCO UNIX and SCO XENIX operating systems since it became available
in June 1990.

                                    # # #

SCO, SCO Professional, and Open Desktop are registered trademarks of
The Santa Cruz Operation, Inc. in the U.S.A.  and other countries.
UNIX is a registered trademark of UNIX System Laboratories in the U.S.A.
and other countries.
XENIX is a registered trademark of Microsoft Corporation.
Lotus and 1-2-3 are registered trademarks of Lotus Development Corporation.
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