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Xandros and Skype Ink Bundling Agreement

Walmart.com and Amazon.com to Carry Full Range of Easy-to-use Xandros Linux Desktops With Skype Internet Calling

BOSTON, MA -- (MARKET WIRE) -- 02/16/05 -- LinuxWorldExpo -- Xandros, the leading developer of easy-to-use Linux solutions, and Skype, the Global Internet Telephony Company(TM), today announced an agreement to bundle Skype with the Xandros Desktop Operating System and promote low-cost Xandros Linux desktops and laptops with Skype Internet calling.

"Xandros and Skype offer products that both reduce costs and improve quality for consumers," said Niklas Zennström, Skype CEO and co-founder. "Xandros-based computers, which sell for as low as $200 (USD), are expanding the market for technology and we're thrilled to join a leader in the Linux market and together grow the global base for modern technology and Skype."

"Our users want the latest features including VoIP," said Andreas Typaldos, Xandros CEO. "Skype delivers secure, crystal-clear Internet telephony, plus it's simple to use, which makes it a perfect fit for our desktop solutions."

The co-marketing agreement will allow for mutual product promotion. Xandros will include SkypeOut vouchers with its latest SurfSidetm Linux suite, as well as with Xandros desktops and laptops sold through Walmart.com, Amazon.com, and other channels. SkypeOut is the pre-paid, premium offering that allows Skype users to call traditional phones around the world at local rates. Xandros customers will receive vouchers worth up to 120 minutes of SkypeOut calls. Skype to Skype calls are free for all users.

Terms of the deal were not disclosed.

About Xandros

Founded in 2001 with headquarters in New York and research and development facilities in Ottawa, Xandros, Inc. is the leading developer of easy-to-use Linux solutions targeting home and enterprise markets. Xandros pioneered a low-cost alternative operating system that provides seamless compatibility with Microsoft Windows programs and networks. For more information please visit www.xandros.com

About Skype Technologies S.A.:

Skype, the Global Internet Telephony Company(TM), allows people everywhere to make free, unlimited, superior quality voice calls via its award-winning innovative peer-to-peer software for Windows, Linux, Mac OS X, and Pocket PC platforms. Skype is available in 20 languages and is the fastest growing voice communications offering worldwide. Since its launch in August 2003, Skype has been downloaded more than 54** million times. Skype Technologies S.A. is headquartered in Luxembourg and is growing its offices in London and Tallinn. Skype Technologies is privately held and backed by top tier international venture capital firms, including Bessemer Venture Partners, Draper Fisher Jurvetson, Index Ventures, and Mangrove Capital Partners. www.skype.com

Xandros Contact:
Xenia von Wedel
Terpin Communications Group
(650) 563-9130
[email protected]

Skype Contact:
Kelly Larabee
SkypeID: kellylarabee
602-258-1416
[email protected]

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