BEIJING, April 24, 2006 -- Building on two years of success working together, Red Flag Software Co., Ltd. (Beijing China, Executive President: Chris Zhao. Hereafter referred to as Red Flag), Miracle Linux Corporation (Tokyo Japan, President: Takeshi Sato. Hereafter referred to as Miracle Linux) and Haansoft, Inc. (Seoul Korea, President & CEO: Jong-Jin Baek. Hereafter referred to as Haansoft) announced today to form a new joint venture to develop Asianux operating system and Open Source Software. The new joint venture will be called the Asianux Corporation and will be based on Beijing and should begin operations in May 2006 after the Chinese government approves its business license. China was selected for the development, technical support and marketing purpose for Asianux since there are numerous Asia-Pacific head offices and R&D centers of global IT companies.

The three companies intend for the Asianux Corporation to be the main distributor of the common framework operating system in Asia-Pacific with continuous collaboration to develop local language and to fulfill government requirements.

Asia-Pacific market has terrific potential in next 10 years. Especially combined GDP of China, Korea and Japan is 7,703 billion USD compared with 11,667 billion USD of USA GDP in 2004. If Chinese market would increase as CAGR 8% in next ten years, the combined China, Korea and Japan market will close in on USA market around 2015.

Additionally In 2004, the Chinese, Korean and Japanese governments organized the North East Asia Open Source Software Promotion Forum. As such, Open Source Software including Linux is being used in many government projects such as NEIS (National Education Information System) in Korea.

The joint venture will appoint Mr. Zhao Xiaoliang, President of Red Flag , Mr. Jong-Jin Baek, CEO of Haansoft, and Mr. Takeshi Sato, CEO of Miracle Linux as key members of Executive Management of 'Asianux Corporation' .

The joint venture expects revenue in the first year with China and Japan markets growing 46% and Korea rising 45%. The joint venture will seek another Asian partner where the IT market has a CAGR of over 10% such as India, Thailand, Malaysia, Indonesia, Philippine and Vietnam. Additionally the joint venture will form Advisory Committee and Open Asianux community with hardware vendors and software vendors to lie out the future technology and function.

Chris Zhao, Executive President of Red Flag, states,
"Today Asianux reach a significant milestone. The establishment of Asianux Corporation makes customers and partners confident in the bright future of Asianux. Now, more than 50,000 enterprise servers are running Asianux in CJK. And it has gotten widely support from global partners.

Asianux model is co-development, co-branding and co-service, through widely cooperation to establish a unify Linux platform across the AP. Next step, we will recruit more members to join Asianux development and cover more AP market.

Asianux Corporation will continuously increase investment in development to deliver high quality product to market. We will also increase investment to support ISV/IHV partners and jointly provide a wide range of value-added solutions to customers.

Besides, we will cooperate with partners, local Linux communities and related government agency to jointly establish a largest Asia Linux community and make more contribution to Linux."

Miracle Linux President Takeshi Sato said,
"Miracle Linux Corporation participates in the establishment of joint venture 'Asianux Corporation' with Red Flag Software Co., Ltd in China and Haansoft, Inc in Korea. Our object is to leverage our business into World Wide market including Asia-Pacific through the joint venture company.

The joint venture allows us to reinforce a relationship with global IHVs and ISVs. They will widely provide certified hardware and software that run on Asianux in market.

Three companies will enter in one company and our union power increases further, and we will provide superior products with reliability, availability and serviceability are enhanced further to the market more than before. According to do it, we will support users' entire requirement from SMB to mission-critical market.

I believe that Asianux success equals to MIRACLE LINUX success, and vice versa."

Jong-Jin Baek, CEO of Haansoft said,
"3 companies of 'Asianux' consortium targeting Asian Standard Linux have agreed to form a Joint Venture.

We've agreed to establish 'Asianux Corporation' in order to give body to 'Asianux' project and seek potential partners to cover whole Asian areas.

Thanks to the 'Asianux Corporation', we expect to advance development process and gain strong reputation as world top 3 Linux distributions (Red Hat, Suse, Asianux).

'Asianux Corporation' has solved continuity issue in terms of organization and service.

Long-term roadmap, stable customer services and solid partnerships with vendors shall be available since we have a perpetual entity beyond the boundaries of consortium-type project."

  Major global hardware companies and software companies have expressed theirs fully support to Asianux Corporation. Following are their remarks.

Adaptec
"Adaptec has remained a strong supporter of the Linux platform and we encourage the efforts being made by Asianux in the Asian Linux market. In order to ensure the best possible out-of-box experience for our customer base in Asia, drivers for Adaptec's full suite of SCSI, SATA and SAS HBAs and RAID controllers are incorporated in the Asianux Linux distribution kernel," said Tim Connolly, vice president of marketing for the Data Protection Solutions Group at Adaptec. "We look forward to expanding our relationship with the evolving Asianux user community as we search for new opportunities to increase cooperation in future product development."

BEA
"The newly established Asianux will provide a unified but also localized Linux to multiple countries in Asia. This will further expand the Linux community in Asia and meet the needs of the community. BEA has invested significantly and been strong supporter for the worldwide Linux community. BEA has offered its Tuxedo, WebLogic, and AguaLogic products on multiple Linux platforms and have received the broadest support from the users. BEA welcome the establishment of Asianux and is committed to supporting its Linux platform and user community."Said Frank Xiong, Vice President of BEA, General Manager of BEA China R&D Center

Dell
Dell Enterprise Marketing Director of APJ, Damian Crotty, states " We see Red Flag and the partnership with Japanese MIRACLE LINUX Corp and Korean Haansoft Inc as a major force in driving standards in the industry and this aligns with Dell's constant focus on driving standards to provide greater value to our customers."

EMC Corporation
Gery Messer, EMC Vice President, TSG, said, "The Asianux Consortium has established itself as an instrumental group driving the adoption of Linux in Asia-Pacific. EMC supports Asianux and its member companies and is committed to increasing the value proposition of Linux in Asia Pacific and the rest of the world with information management and storage solutions for enterprise Linux environments."

Emulex
"Emulex recognizes Linux as a very important operating system environment within the Asia marketplace and we have been working closely with Red Flag to ensure robust integration of our high performance Fibre Channel host bus adapters into the Linux community," said Mike Smith, executive vice president of worldwide marketing, Emulex Corp. "Congratulations to Asianux on its joint venture with leading software companies in China, Japan and Korea. We are confident this unified approach to delivering Open Source software to the Asian Linux community will be highly successful and Emulex is looking forward to future opportunities and new partnerships with Asianux.""

Hitachi Ltd.
"Hitachi. Ltd. welcomes that the establishment of Asianux Corporation as a foundation of Asian Linux spread. We expect that Asianux will grow with full implementation of enterprise system requirement and optimization to Asian market. We believe, with our products and technology, Asianux leads the market and offers certain customer value proposition." Said Kazuhiro Fujisaki General Manager Platform Software, Software Division Hitachi, Ltd.

HP
"I would like to congratulate Professor Zhao, Mr. Baek, and Mr. Sato for creating Asianux Corporation and demonstrating valuable leadership in the advancement of Linux throughout Asia. HP welcomes the establishment of Asianux Corporation as the next critical step in the 2 year relationship HP has enjoyed with Asianux and its individual founding members, Red Flag, Haansoft, and Miracle. "Said Stephen Geary HP OSLO R&D director

IBM
Steve Kang, Linux SW Sales Executive, IBM Software Group, Asia Pacific Said:" In the burgeoning Asian market, it's clear that Linux-based offerings such as Asianux will thrive in response to the growing demand for open standards- and open sourced-based IT strategies. WebSphere Application Server Community Edition as well as DB2 UDB 8.2 has been certified on the Asianux platform which further evidences IBM's continued commitment to the open source and open standards community."

Intel
"The formation of Asianux Corporation is a continuation of Linux standardization efforts such as the Linux Standards Base that enable interoperable Linux based solutions," said Doug Fisher, General Manager of Core Software Division. "Intel and Asianux Corporation are working to implement support in Asianux for Intel technologies such as Intel Core Micro architecture, Intel Virtualization Technology and Intel I/O Acceleration Technology, and industry initiatives such as Carrier Grade Linux. Intel platforms deliver world-class performance, efficiency, dependability, and responsiveness; and are supported by a broad ecosystem of OEMs and operating systems such as Asianux"

Oracle Corporation
"We applaud Asianux' vision to create an Asia-centric Linux operating environment that would offer low-cost, reliable and secure solutions for enterprises in Asia," said Derek Williams, Executive Vice President, Oracle Asia Pacific. "Oracle has had a long history of leadership on the Linux operating system. Oracle released the first commercial database on Linux in 1998, which enabled customers to deploy enterprise-class solutions on the lowest cost hardware and operating system infrastructure. Oracle's overarching goal is to help build Linux standards in the Asian markets so that customers can benefit from greater choice of software and hardware Products using Linux."

Samsung
"Asianux is broadening the government market rapidly. Samsung Electronics Co., Ltd. welcomes that Asianux 2.0 is adopted as the main Linux OS of our server from the stage of development. We are validating all our servers using Asianux 2.0, which has excellent performance, stability, availability and scalability. We will continue to provide the best server solution through collaboration with Haansoft Inc." Said Inho Lee, SAMSUNG Vice President.

SAP
"SAP sees Red flag as a key partner in East Asia, providing the premier platform for open source computing. The Red flag Linux OS has so far been certified on mySAP ERP and Business One solutions. I wish to take this chance giving SAP congratulations on the establishment of Asianux, which has a sound plan to incorporate the development competence of three countries, namely China, Korea and Japan. We believe this establishment will definitely bring Red Flag's product portfolios to new height and in turn, render more synergy between Red Flag and SAP" Said Mr Tan Tong Ngee SAP China Alliance Director

Stratus Technologies, Inc.
"Stratus Technologies is pleased with the establishment of Asianux Corporation, the demand for mission critical Linux based systems is increasing worldwide. Stratus is already a joint business partner with Miracle Linux Corporation in Japan and we expect this relationship to expand to Asia Pacific region with the formation of Asianux Corporation." Said Allan Jennings, Senior Vice President, Product and Solutions Development, Stratus Technologies, Inc.

Sybase
Mark Westover, Vice President, Corporate Development and Marketing, Sybase Inc. said:" Sybase encourages participation in open source development. We look forward to developing a close partnership with Asianux as we help drive the Linux standard in Asia."

Symantec
Andy Wu, managing director for Symantec China, said, "Symantec has established a solid and long-term partnership with Red Flag working together on a number of joint projects to develop solutions for the Chinese Linux market. We welcome the development of the Asianux operating system and the formation of this new joint venture. Most recently our leading backup solutions - Symantec NetBackup and BackupExec solution suites have been certified with the Red Flag DC Server and we look forward to developing our relationship with the new Asianux Corporation for further opportunities to provide tailored solutions for our Chinese customers."

Toshiba Corporation
Yoshitada HIMENO, Vice President, PC & Network Company, Toshiba Corporation said, "We welcomes that the establishment of Asianux Corporation. We expect that Asianux driver by advanced collaboration with three companies accelerate Linux business. We believe that Asianux is Linux platform including Asian required function has a capability to fulfill rigid and considered Japanese criteria that Toshiba MAGINIA passed. "

Asianux Corporation Reference

1. Company Profile:
– Joint Venture Name: Asianux Corporation
– Establishment Estimated Date: 2nd quarter, 2006
– Location: Beijing, China


2. Mission:
– Development/Collaboration: Development and business activities are jointly performed
– Business Model: Sales & Consulting of Linux Operating System
– Profit Model:
(a) Seeking additional partners in Asia to co-develop and distribute Asianux operating system
(b) Pre-install bundle business for global hardware vendors
(c) Service & Consulting activities for partners and customers

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