Microsoft Scheme to Cost Consumers $54 Billion; Households Save Billions on Their Computing Needs with Lindows.com 'Family License'


SAN DIEGO, April 30, 2002 (PRIMEZONE) -- Lindows.com, Inc., today announced a licensing move that brings financial relief to any family with a computing need. The Family License offers uninhibited access to Lindows.com's modern, stable, easy-to-use Operating System for every computer that a family owns for just $99. The Family License allows users to run the LindowsOS Operating System on every computer in the family breaking up the current Microsoft pricing racket and removing the need for activation codes.

"Can you imagine visiting a record store to buy a new CD, and the cashier informs you that you'll need to buy three copies of the same recording," asked Michael Robertson, Chief Executive Officer of Lindows.com, Inc. "It would be preposterous for them to suggest you'd need to buy one copy to listen to in your car, one copy for your home, and a third copy for your portable CD player. There are lots of parallels between music and software. Many consumers have told us that they are fed up, and will never purchase products that require activation codes. With LindowsOS, consumers are given a choice and they are choosing to speak with their pocket books. Today's consumer is fighting back with their hard earned money by choosing to purchase LindowsOS."

Currently, when software customers purchase Microsoft Windows XP or other Microsoft products, the licensing scheme requires separate copies for every computer, even if owned and used by only one person. For example, if a customer buys Microsoft Office for their home computer, they are required to purchase an additional copy for their notebook, despite the fact that users physically couldn't use both computers simultaneously. Microsoft enforces this licensing scheme by requiring users to keep track of a 25-digit number and demanding activation before extensive use.

LindowsOS is licensed to run on every computer that a family owns, including laptops. This policy applies to all household computers no matter how many computers a household has, whether it be a desktop in a home office, a family computer in the living room, a teenage homework computer, a notebook used when traveling, or even a kitchen recipe computer, they are all covered under the Lindows.com Family License.

Microsoft Activation Scheme to Cost Families anAdditional $54 billion*

Microsoft's move to force activation will cost consumers an extra $54 billion to equip homes with software over the next six years. For many homes this will mean they will be able to afford fewer computers and for a great deal of people, no computer at all.

"Microsoft's activation schemes are similar to the music industries rejected Secure Digital Music Initiative (SDMI). It is an attempt by big corporations to boost profits without giving the consumer any more value. These are illogical and ill-conceived ploys and the Family License from Lindows.com finally brings a choice to the consumer to let them speak out with their checkbooks," added Robertson.

The Lindows.com Family License is simple, no serial numbers to type in, no hassles when users attempt to upgrade a computer or computer components, no need to make phone calls or have an internet connection to get authorization to use software you've already paid for.

Interested parties can read the Family License agreement in its entirety at www.lindows.com/eula

Lindows.com Sneak Preview 2 is currently available. Interested parties can sign-up for the Lindows.com Insiders program at (www.lindows.com/signup). All Insiders get a Family License and early access to Sneak Previews of LindowsOS. Insider members will also receive a free upgrade to the final LindowsOS product due out later this year.

*Note: The $54 billion total is calculated as follows:

600 million(1) x 45%(1) x ($100(2) + $300(3))/2(4) = 54 billion dollars



 1. According to the Computer Industry Almanac, 600 million PCs will
    ship in the next six years with 45% of computers used worldwide
    being for personal use in homes.

 2. Most computer manufacturers pay Microsoft around $100 per copy for
    Windows XP the privilege of bundling Microsoft Windows

 3. Assume cost of Microsoft Office Suite is $300

 4. Assumes 2- computer household 

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About Lindows.com

Lindows.com is a consumer company that brings choice to computer users. Lindows.com, Inc. uses the latest technology to create affordable, stable, user-friendly products. Lindows.com, Inc. was started by Michael Robertson, founder and former CEO of MP3.com. At the core of Lindows.com is a new operating system called LindowsOS, a modern, affordable, easy-to-use operating system with the ability to run both Microsoft Windows and Linux (r) software.

About Sneak Previews

Sneak Previews are not fully completed products, yet they illustrate many unique features such as a "Friendly-Install," alongside an existing Microsoft Windows operating system, streamlined installation (which requires minimal computer knowledge), and the ability to run popular Windows-based programs. LindowsOS will go on sale later this year for one-third of the cost of a comparable Microsoft offering. For more information see www.lindows.com/products.


            

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