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Microsoft Closes Window on 50 Million 98 & ME Users; Xandros Opens Door With Easy-to-Use Windows Alternative

Xandros Desktop - Home Edition Offers Easy-to-Use Linux Alternative for "Disenfranchised" Windows 98 & ME Users

NEW YORK, NY -- (MARKET WIRE) -- 07/28/06 -- Xandros, the leading provider of easy-to-use Linux alternatives to Windows, today announced an immediate solution for the 50 million 'disenfranchised' Windows 98, 98SE and ME customers left without support and security patches. In response to the recent announcement by Microsoft to suspend support to these customers, Xandros is providing affected users a special opportunity to upgrade their now unsupported and vulnerable Windows systems to Xandros' recently released Desktop Home Edition or Home Edition Premium, a secure and stable Windows alternative with full support and online update facilities. Xandros is offering these users a 50% mail-in rebate when upgrading to either Xandros Desktop Home Edition or Home Edition Premium which can be installed alongside the unsupported Microsoft Windows, even on older hardware, eliminating the need for costly new hardware required by a Windows XP or Vista upgrade. After upgrading to Xandros, users will continue to have full read and write access to all documents, music, and other files that reside within their original Windows installation and users can choose to install and continue to use Microsoft Office and other popular Windows programs.

"Now that Microsoft has discontinued all support for Windows 98, 98SE and ME, legacy Windows users have three options," said Andreas Typaldos, CEO of Xandros. "First, they can cross their fingers and continue to use the abandoned, insecure and unsupported Windows product. Second, they can purchase a costly XP upgrade along with new hardware that will be out of date as soon as Vista is released. Or third, they can continue using their existing computer by installing the latest Xandros Desktop Home Edition. Not only does this option extend the useful life of their computer without a need to learn anything new, but it also provides users with a stable and reliable platform that is free from the constant frustration of spyware and viruses, and costs less than Windows-based Anti-Virus software alone."

"Because of Xandros' unique approach in developing Linux-based products that do not require Windows users to change the way they use a PC today, we can offer more than just a lifeboat to these recently abandoned Windows users," said Todd Kanfer, Xandros' Vice President of Marketing. "Xandros Desktop Home Edition will rescue them today from the sinking ship of Windows 98, and provide a fortified, stable and secure computing platform for their future, freeing them from stress, frustration, and high costs of maintaining their digital lives on Windows."

"Like other widely used consumer products that harness the benefits of Linux and Unix behind the scenes, such as Mac OS X, gaming platforms and multimedia devices, Xandros Desktop delivers a packaged solution that meets the needs of the consumer's digital lifestyle," Kanfer continued. "For the millions of users who are being forced by Microsoft to upgrade, Xandros provides a quick, robust, easy and inexpensive alternative to Windows. Xandros Home Edition delivers the features and the look and feel to which these users are accustomed and can be installed on an existing Windows 98 or ME PC, preserving access to all their Windows files. Within minutes, they will be up and running, using the Internet and e-mail, creating documents, enjoying their music and media without interruption to their digital lifestyle. Even though the Linux technology is not visible to them, users immediately benefit from its superior performance, stability, security and lower cost of ownership."

The Platform For Your Digital Life

The new Xandros Desktop Home Edition combines the security and stability of Linux with the familiarity of Windows and Mac OSX.

Some of the included features are:

--  Web: Wireless network profiles quickly connect to favorite wireless
    networks and hot-spots anywhere. Easily switch between wired and wireless
    networks, and connect to school and corporate VPNs (Virtual Private

--  Music: Music Manager with iPod support to sync iPod and MP3 players.
    Import and organize music, podcasts and audiobooks. Listen to playlists and
    collections. Create MP3s and audio CDs.

--  Photos: Xandros Photo Manager to import photos from your digital
    camera. View, edit and organize your albums. Post images online or print
    them at home.

--  Video: RealPlayer support of popular media types, plus the Xine open
    source video player to support most video formats and DVDs.

--  Telephone: Skype Internet calling, including bonus 30-minute SkypeOut
    voucher to call regular phones.

--  Browser: Firefox tabbed web browsing with automatic blocking of pop-up

--  E-mail: Thunderbird e-mail with intelligent spam filtering.

--  Ease of use: Xandros File Manager for access to local and remote
    resources, drag-and-drop DVD burning, and more.

--  Updates: Xandros Networks for automatic updates plus single-click
    access to free and commercial software.

--  Transfer Your Windows Personality -- with Versora Progression Desktop,
    a Windows user can easily transfer their files, settings and digital
    personality to their new Xandros environment in a few simple clicks.

Users can install Xandros Desktop Home Edition on existing hardware and enjoy transparent Windows compatibility, including the ability to work on the same files from Linux and Windows. Premium users have the choice of using popular Windows software products, such as Microsoft Office, or popular open source software products, such as OpenOffice.org.

Special Windows 98/98SE/ME Upgrade Offer

Xandros is offering a special upgrade promotion for Windows 98 & ME users. From now through August 31, 2006, qualified users who upgrade to Xandros Desktop - Home Edition or Home Edition - Premium will receive a 50% rebate. Users can take advantage of this offer by purchasing these products at any retailer that offers Xandros, including CompUSA, Circuit City, TigerDirect, Fry's, and Buy.com and then visit http://www.xandros.com/ to redeem their rebate.

For further details, please visit www.xandros.com.

About Xandros

Founded in 2001 with headquarters in New York, offices in Frankfurt and Mumbai, and research and development facilities in Ottawa, Xandros, Inc. is the leading provider of easy-to-use Linux alternatives to Windows. Its Debian-based products range from standalone consumer desktops to end-to-end enterprise desktop, server, and management solutions featuring workflow automation and centralized, remote administration. Xandros pioneered low cost, graphical operating systems that leverage existing skill sets and provide seamless compatibility with Microsoft Windows programs and networks. For more information, please visit www.xandros.com.

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

Xandros Customer service or sales please call: 212-213-8083.

Media contact:

Xenia von Wedel
Terpin Communications Group
Email Contact

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