BEIJING, CHINA; TOKYO, JAPAN March 31, 2004 -- Red Flag Software Co., Ltd. and Miracle Linux Corporation today announced completion of the beta version of Asianux 1.0, the only standardized Linux operating environment developed specially for businesses in Asia. With the completion of Asianux 1.0 Beta, software vendors can now attain product certification through the newly launched Asianux Certification Program.

"Interest in Asianux is gaining speed at an incredible rate because it holds great promise for businesses in Asia, especially for China and Japan in our early days," said Chris Zhao, acting president for Red Flag. "We're opening our doors to more software vendors to compound our efforts to create a more cost-effective, reliable and scalable choice for enterprises in Asia."

The Asianux Certification Program aims to help software vendors and hardware vendors certify their products through an application program, access to a variety of resources, including the latest Asianux version, technical information and support, as well as early access to Red Flag and Miracle Linux products. Asianux certification will verify compatibility with both MIRACLE LINUX V3.0 and Red Flag DC4.1, which will result in reduced time and cost for certification and enable partners to develop new products using Asianux.

"Increasing software and hardware certification will accelerate enterprise Linux in Asia," said Takeshi Sato, president of Miracle Linux. "Cooperation among our partners to promote solutions on Asianux will ultimately benefit customers as it will give them greater choice."

Asianux 1.0 was jointly developed by Red Flag and Miracle Linux. Asianux aims to provide enterprises with an operating environment in Asia that enhanced high availability, reliability, scalability, manageability and many functions. Asianux will be bundled with next version of each distribution as an installation CD without any modification and will be shipped by each brand name (MIRACLE LINUX V3.0 and Red Flag DC4.1) in Japan and China in the middle of June 2004.

Leading Vendors to Receive Early Certification on Asianux

More than 40 leading vendors plan to receive early certification on Asianux 1.0, which include MIRACLE LINUX V3.0 and Red Flag DC 4.1.

"Education, research and development for Linux environments like Asianux is exactly what's required for enterprises to easily take advantage of this cost-effective option," said Vivian Tero, market analyst, Infrastructure Software Research, IDC Asia/Pacific, adding that IDC expects the Linux server and client operating systems market in China will more than double to US$41.9 million by 2008.
"Linux is establishing its firm position as the third platform in the server operating systems," said Kazuyuki Ide, software research manager, IDC Japan. According to IDC Japan, the Linux server and client operating systems market in Japan will reach approximately US$105 million in 2007. ^*1
*1 Source: IDC Japan press release on January 7, 2004

Software vendors who plan to receive early certification include:

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 Red Flag Platform. Red Flag Software is the leader in offering a combination of free software and unparalleled technical expertise among Chinese users. To learn more about Red Flag, please visit www.redflag-linux.com.

About Miracle Linux
Open for business since June 1st, 2000 as a dedicated provider of Linux server OS-related products and services, Miracle Linux carries out a wide variety of projects, focusing on the development and sale of the Linux OS, sale of Linux versions of Oracle software products, and also provision of Linux-related support services including consulting, education, and maintenance. With its "long-term support services," it guarantees product support for six years and above.

Alice Yang
Red Flag Software Co.,Ltd.
+86 10-82656655-2101
aliceyang@redflag-linux.com

Masako Watanabe
Miracle Linux Corporation
+81 03 5562-8322
mktg@miraclelinux.com