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News Release

January 7, 2004
Red Flag Software Co., Ltd.
Miracle Linux Corporation

China's Red Flag and Japan's Miracle Linux Form Linux Partnership
Both parties to jointly develop common-core server operating environment

BEIJING, January 7, 2004 -- China's Red Flag Software Co., Ltd. and Japan's Miracle Linux Corporation today announced the establishment of a strategic partnership to jointly develop low-cost, reliable and secure enterprise Linux solutions for the Asian market, where Linux is fast growing both in adoption and popularity among enterprises and government organizations.

By collaborating with each other at Oracle's China Development Center in Beijing and combining Miracle Linux' strength in server technology and Red Flag's advantage in desktop technology, the two leading Linux vendors can share technologies and will enable customers in both markets to implement Linux solutions on the same standard Linux platform and enjoy joint technical support.

"The uniqueness of this partnership is that our solutions will use a server operating environment that shares one common kernel, thus allowing customers to select either Red Flag or Miracle Linux product without validating each time," said Takeshi Sato, president of Miracle Linux. "This means that individual software vendors and individual hardware vendors will reduce the time and cost required for certification and that customers can choose a greater number of software and hardware solutions in a Linux operating system."

Sato said that the other unique feature of the partnership is that Red Flag and Miracle Linux will provide joint technical support to ensure quick customer response and consistent level of service in both countries.

"Linux is enjoying a big momentum in Asia including China and Japan because of the strong government support and customers are beginning to realize its benefits. By combining our strengths and sharing technologies, we will not only deliver reliable, highly available and common-standard Linux solutions in the Asian market but also help build Linux standards, which is one of the success factors for Linux to become a preferred platform," said Chris Zhao, acting president Red Flag, adding that the partnership will give Linux another boost in Asia.

Red Flag is China's leading Linux operating system vendor. Miracle Linux is Japan's market leader in Linux server operating system, providing enterprise Linux and highly reliable support services to customers and system integrators.

The Red Flag-Miracle Linux partnership will focus on three major areas -- server operating environment, joint support and desktop operating system - all at Oracle's China Development Center in Beijing.

Server Operating Environment

Both parties will set up a joint team to develop Asianux, a Linux server operating environment which will provide common kernel, library and packages for server operating systems. Software from Oracle and other vendors as well as hardware will be certified on Asianux at the Oracle China Development Center. Both companies will distribute and market Asianux without any modifications in each original Linux distribution package in China and Japan. New products such as Red Flag DC 4.1 and Miracle Linux V3.0 will be based on Asianux and each will be bundled with localized features in either country.

Joint Support

Red Flag, Miracle Linux and Oracle will set up a joint technical support center at the Oracle China Development Center to establish support services at the time of a new product release to provide technical support for both Chinese and Japanese customers in China who are using either Miracle Linux or Red Flag products based on Asianux.

Desktop Operating System

Miracle Linux is evaluating the possibility of distributing Red Flag's desktop operating system in Japan in collaboration with Red Flag.

"Oracle is fully committed to supporting the Linux operating system. Our strategy has been to build strategic partnerships with leading Linux vendors to provide direct technical support of key Linux operating systems," said Kevin Walsh, vice president of Internet technologies at Oracle and head of the Oracle China Development Center.

"As Oracle's major Linux arms in China, the China Development Center has been working closely with Red Flag to provide top Linux solutions and first-line support to enterprises and organizations in China. Collaborating with both Red Flag and Miracle Linux really provides a strong incentive for customers in North Asia to fully exploit Linux in business and government applications. "

About Red Flag
Red Flag Software Co., Ltd. was founded in June 2000. It focuses on the development and marketing of Linux operating systems and application software on multiple platforms for the constantly growing base of Chinese technology users. Red Flag's Linux solutions include the Red Flag Linux Desktop, low-to-high end Red Flag Linux Server, Red Flag Embedded Linux OS, Security Server plus industry solutions based on the Red Flag platform. Red Flag is the leader in offering a combination of free software and unparalleled technical expertise among Chinese users. It is Oracle's Linux partner in China. Red Flag and Oracle jointly developed and delivered Red Flag DC Server 4.0 Operating System in June 2003. Chinese customers such as China Post and Xiaolanzhen Town have adopted it. To learn more about Red Flag, please visit www.redflag-linux.com.

About Miracle Linux
Open for business since June 1, 2000 as a dedicated provider of Linux server operating system-related products and services, Miracle Linux carries out a variety of projects, focusing on the development and sale of Linux operating system, sale of Linux versions of Oracle software products and provision of Linux-related support services including consulting, education and maintenance.

About Oracle
Oracle Corporation (NASDAQ: ORCL) is the world's largest enterprise software company. For more information about Oracle, please visit http://www.oracle.com.

For press inquiries:

Masako Watanabe, Takashi Kodama, Marketing Dept., Product Division,
MIRACLE LINUX CORPORATION
Tel: 03-5562-8300
E-mail: mktg@miraclelinux.com

Alice Yang, Red Flag Software Co.,Ltd.
Tel: 8610-82656655-2101
E-mail: aliceyang@redflag-linux.com

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