The SCO Group Files Chapter 11 to Protect Assets as It Addresses Potential Financial and Legal Challenges

Reorganization ensures business as usual and that assets remain for

continued support of customers and channel partners

Sep 14, 2007, 01:00 ET from The SCO Group, Inc.

    LINDON, Utah, Sept. 14 /PRNewswire-FirstCall/ -- The SCO Group, Inc.
 ("SCO") (Nasdaq:   SCOX), a leading provider of UNIX(R) software technology
 and mobile services, today announced that it filed a voluntary petition for
 reorganization under Chapter 11 of the United States Bankruptcy Code. SCO's
 subsidiary, SCO Operations, Inc., has also filed a petition for
 reorganization. The Board of Directors of The SCO Group have unanimously
 determined that Chapter 11 reorganization is in the best long-term interest
 of SCO and its subsidiaries, as well as its customers, shareholders, and
     The SCO Group intends to maintain all normal business operations
 throughout the bankruptcy proceedings. Subject to court approval, SCO and
 its subsidiaries will use the cash flow from their consolidated operations
 to meet their capital needs during the reorganization process.
     "We want to assure our customers and partners that they can continue to
 rely on SCO products, support and services for their business critical
 operations," said Darl McBride, President and CEO, The SCO Group. "Chapter
 11 reorganization provides the Company with an opportunity to protect its
 assets during this time while focusing on building our future plans."
     The SCO Group has filed a series of first day motions in the Bankruptcy
 Court to ensure that it will not have any interruption in maintaining and
 honoring all of its commitments to its customers. The motions also address
 SCO's continued ability to pay its vendors, the retention of various
 professional advisors, and other matters.
     About SCO
     The SCO Group (Nasdaq:   SCOX) is a leading provider of UNIX software
 technology and mobile services. SCO offers UnixWare for enterprise
 applications and SCO OpenServer for small to medium businesses. SCO's
 highly innovative and reliable solutions help customers grow their
 businesses everyday, especially into the emerging mobile market. SCO owns
 the core UNIX operating system, originally developed by AT&T/Bell Labs and
 is the exclusive licensor to UNIX-based system software providers. The Me
 Inc., product line focuses on creating mobile platforms, services and
 solutions for businesses and enhances the productivity of mobile workers.
     Headquartered in Lindon, Utah, SCO has a worldwide network of thousands
 of resellers and developers. SCO Global Services provides reliable
 localized support and services to partners and customers. For more
 information on SCO products and services, visit
     SCO and the associated logos are trademarks or registered trademarks of
 The SCO Group, Inc. in the U.S. and other countries.
     Forward Looking Statements
     The statements contained in this press release regarding (i) filing for
 protection under Chapter 11 and our reorganization efforts under Chapter 11
 bankruptcy protection, and (ii) other statements that are not historical
 facts are forward-looking statements and are made under the safe harbor
 provisions of the Private Securities Litigation Reform Act of 1995. These
 statements are based on management's current expectations and are subject
 to risks and uncertainties. We wish to advise readers that a number of
 important factors could cause actual results to differ materially from
 historical results or those anticipated in such forward-looking statements.
 These factors include, but are not limited to the outcomes and developments
 in our Chapter 11 case, court rulings in the bankruptcy proceedings, the
 impact of the bankruptcy proceedings on our other pending litigation, our
 cash balances and available cash, continued competitive pressure on the
 Company's operating system products, which could impact the Company's
 results of operations, adverse developments in and increased or unforeseen
 legal costs related to the Company's litigation, the inability to devote
 sufficient resources to the development and marketing of the Company's
 products, including the Me Inc. mobile services and development platform,
 and the possibility that customers and companies with whom the Company has
 formed channel partnerships will decide to terminate or reduce their
 relationships with the company. These and other factors that could cause
 actual results to differ materially from those anticipated are discussed in
 more detail in the Company's periodic and current filings with the
 Securities and Exchange Commission, including the Company's Form 10-K for
 the fiscal year ended October 31, 2006 and Form 10-Q for the fiscal
 quarters ended January 31, 2007 and April 30, 2007, and future filings with
 the SEC. These forward-looking statements speak only as of the date on
 which such statements are made, and the Company undertakes no obligation to
 update such statements to reflect events or circumstances arising after
 such date.

SOURCE The SCO Group, Inc.