Caldera International, Inc. Announces Preliminary Second Fiscal Quarter Revenue Results and Restructuring Caldera Reinforces Commitment To Profitable Operations

Through Trimming Organization



    LINDON, Utah, May 8 /PRNewswire-FirstCall/ --
 Caldera International, Inc. (Nasdaq:   CALD), a leading provider of business
 solutions to small-to-medium businesses, today announced that it expects to
 report revenue in the range of $15.1 to $15.5 million for the second quarter
 ended April 30, 2002.  These latest projections modify earlier projections
 announced at the end of the prior quarter that Caldera expected revenue to be
 between $16.0 and $18.0 million.  Caldera cited the continued economic
 weakness and a slower than anticipated increase in IT spending that
 contributed to the revenue shortfall.  Customers are continuing to expand
 their operations, but at a much slower pace than in past years.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20010109/LATU087LOGO-a )
     Caldera will provide updated information with regard to the upcoming
 quarter's revenue outlook in a press release and conference call announcing
 results for the second quarter on Wednesday, May 29, 2002.
     Due to Caldera's revenue shortfall and the company's increased
 efficiencies, Caldera also announced a 15 percent reduction in the company's
 worldwide staff, or approximately 73 employees.  The reduction will broadly
 cover all functional and geographic areas of the company.  After this
 reduction, the company will have a total staff of approximately 400 employees.
     The company plans to streamline operations by closing offices in
 Chelmsford, Massachusetts and Erlangen, Germany.  Caldera will continue its
 German operations in Munich and Frankfurt.  The restructuring is another step
 to help the company realize its goal of achieving profitability and is
 expected to save the company $7.0 million on an annual basis.
     "Recognizing the difficult worldwide I.T. market conditions and Caldera's
 commitment to profitability, we believe that this is a necessary step to
 protect shareholder value in Caldera," said Ransom Love, Chairman and CEO,
 Caldera International.  "Since the acquisition of the SCO Server division,
 Caldera has eliminated $9.3 million or 42 percent in quarterly operating
 expenses as we continue to drive to our profitable operating model."
     In addition to the reduction in force, Caldera is also announcing the
 departure of the company's chief technology officer, Drew Spencer, and Chief
 Legal Counsel, Harrison Colter.  Both Spencer and Colter will continue
 consulting with the company on a part-time basis.  Spencer joined Caldera in
 1999 and has held several positions overseeing software development, research
 and engineering.  Colter joined Caldera in 2001 as Caldera's chief legal
 counsel.
     As part of the executive reorganization, Reg Broughton, the company's
 senior vice president over services and operating systems, will assume
 responsibilities for the company's global operations.  Broughton brings more
 than 25 years of experience in executing sales, marketing and operational
 excellence of public and private companies.
 
     Caldera International, Inc.
     Caldera International (Nasdaq:   CALD) provides "Powerful Choices" for
 businesses through its UNIX, Linux and Volution product lines and services.
 Based in Lindon, UT, Caldera has representation in 82 countries and
 16,000+ resellers worldwide.  Caldera Global Services provides reliable
 localized support and services to partners and customers.  For more
 information on Caldera products and services, visit http://www.caldera.com .
 
     Caldera, the Caldera logos, Caldera Volution, OpenLinux, SCO and the
 associated SCO logo, and SCO OpenServer are trademarks or registered
 trademarks of Caldera International, Inc. in the U.S. and other countries.
 Caldera Global Services is a service mark of Caldera International, Inc.  UNIX
 is a registered trademark of The Open Group in the United States and other
 countries.  Linux is a registered trademark of Linus Torvalds.  All other
 brand or product names are or may be trademarks of, and are used to identify
 products or services of, their respective owners.
 
     Forward Looking Statements
     The statements set forth above include forward-looking statements that
 involve risks and uncertainties.  The Company wishes to advise readers that a
 number of important factors could cause actual results to differ materially
 from those in the forward-looking statements.  These factors include the
 ability of the Company to successfully meet its revenue projections, which are
 based in part, on the continued acceptance in the marketplace of the
 historical products of the acquired operations; the ability of the Company to
 develop and successfully introduce products integrating its products and
 services with those historically offered by the recently acquired operations;
 the ability of the Company to continue to manage its cost reductions without
 adversely affecting customer service and employee productivity; the ability of
 recently introduced and new products to operate as designed, including
 compatibility with various platforms in the absence of other defects; the
 Company's reliance on developers in the open source community; new and
 changing technologies and customer acceptance of those technologies; the
 Company's ability to compete effectively with other companies; failure of our
 brand to achieve the broad recognition necessary to succeed; unenforceability
 of the GNU general public license and other Open Source licenses; our reliance
 on third party developers of components of our software offerings; claims of
 infringement of third-party intellectual property rights; and disruption in
 the Company's distribution sales channel.  These and other factors, which
 could cause actual results to differ materially, are discussed in more detail
 in the Company's filings with the Securities and Exchange Commission.
 
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SOURCE Caldera International, Inc.

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