Xandros Acquires Linspire, Creator of CNR Application Distribution Facility and Freespire Desktop

NEW YORK, NY--(Marketwire - July 2, 2008) - Xandros, Inc., the leading provider of custom OEM Linux solutions, next-generation Linux desktop and server products, and advanced cross-platform Windows-Linux management tools, today announced the acquisition of Linspire, developer of the CNR software distribution facility, and the Linspire and Freespire Linux desktop operating systems. The combination of the technologies, expertise, and market presence of the two companies supports Xandros' mission to become a powerful one-stop Linux solutions company. With this acquisition, Xandros further enhances its ability to meet the needs of a growing number of Linux and mobile users for one-click software delivery to update and enhance their devices; for energizing ever larger third party applications development; and for providing access and delivery to users of applications and content from digital warehouses that increase value and user experience.

"Xandros has emerged as a leader in the OEM, mobility, desktop and PC management and application business, so I'm excited to see the Linspire technology, including CNR, go to a worthy competitor that shares our vision," said Linspire Founder & Chairman Michael Robertson. "The Linux business is going through some healthy and necessary consolidation, which will give resulting companies greater assets and size to deliver on larger initiatives so Linux can touch more people."

"Products like the ASUS Eee PC have demonstrated the huge potential market for Linux-based OEM netbook solutions, and CNR will help Xandros make these platforms easy to enhance and maintain, while providing on-demand delivery of a growing number of Linux applications, utilities, games, and content," said Andreas Typaldos, Xandros CEO. "Linspire's CNR technologies will speed up Xandros' expansion into the applications space and encourage the development of third party content critical for facilitating Linux adoption."

Xandros and Linspire are the only Linux vendors with digital distribution warehouses that let users download and install both free and commercial applications with a single mouse click. Together, the companies will offer the best digital software distribution warehouse for a variety of Linux platforms, including Freespire, which will continue to be maintained as an open source project.

About Xandros

Xandros, Inc. is a leading provider of mixed-environment BridgeWays management tools and intuitive Linux solutions including SMB and enterprise servers, consumer and business desktops, custom OEM solutions, and mission-critical applications. Xandros subsidiary Scalix provides the premier e-mail, calendaring and messaging solutions based on open standards and open source. Xandros and Scalix foster Linux adoption with graphical products that leverage existing skill sets while providing seamless Windows-Linux interoperability. Xandros server and management tools feature workflow automation and centralized remote deployment and administration. The company is headquartered in New York with research and development facilities in Ottawa, Europe, and Mumbai, and sales and support offices worldwide. For more information, please visit www.xandros.com.

About Linspire & CNR

Linspire, Inc. (http://www.linspire.com) was founded in 2001 to bring choice into the operating system market. The company's flagship product, the Linspire operating system, is an affordable, easy-to-use Linux-based operating system for home, school, and business users. CNR (http://www.cnr.com) is a free one-click software delivery service designed to standardize the process and eliminate the complexity of finding, installing and managing Linux software for the most popular desktop Linux distributions.

Xandros® is a registered trademark of Xandros, Inc. Scalix is a trademark of Scalix Corporation. All other trademarks and/or registered trademarks are the property of their respective owners.

Contact Information: Xandros Media Contact: Xenia von Wedel Terpin Communications for Xandros 1-415-595-2030 Customer service: 1-613-842-3494