"THE SCO GROUP ANNOUNCES SIGNING OF INTELLECTUAL PROPERTY COMPLIANCE LICENSE FOR SCO UNIX RIGHTS

Fortune 500 licensee acquires SCO UNIX license for concurrent run-time use of Linux

LINDON, Utah - August 11, 2003-The SCO® Group (SCO)(Nasdaq: SCOX) today announced the signing of its first Intellectual Property Compliance License for SCO UNIX Rights. This announcement comes less than a week after the commencement of the SCO IP License for Linux program. Terms of the deal and the Fortune 500 company name were not disclosed based on confidentiality provisions of the agreement, but a license was purchased for each of the Linux servers running their business.

"We've had more than 300 companies in the first four business days of this program contact SCO to inquire about SCO's Intellectual Property License for Linux," said Chris Sontag, senior vice president and general manager, SCOsource, SCO's software licensing division. "This Fortune 500 company recognizes the importance of paying for SCO's intellectual property that is found in Linux and can now run Linux in their environment under a legitimate license from SCO. We anticipate this being the first of many licensees that will properly compensate SCO for our intellectual property. After having initiated the program last week, we are very pleased with the licensing interest to date."

For more information on the SCO Intellectual Property License for Linux, contact SCO by calling (800)726-8649 or visit the SCO Web site at http://www.sco.com/scosource/linuxlicense.html.

About SCO

The SCO Group (NASDAQ: SCOX) helps millions of customers in more than 82 countries to grow their businesses everyday. Headquartered in Lindon, Utah, SCO has a worldwide network of more than 11,000 resellers and 4,000 developers. SCO Global Services provides reliable localized support and services to partners and customers. For more information on SCO products and services, visit http://www.sco.com.

SCO and the associated SCO logo are trademarks or registered trademarks of The SCO Group, Inc. in the U.S. and other countries. UNIX is a registered trademark of The Open Group. All other brand or product names are or may be trademarks of, and are used to identify products or services of, their respective owners."

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