SCO's Response to Judge Kimball's Ruling of July 16, 2008

We are reviewing today’s ruling by Judge Dale Kimball with our counsel
and will be assessing the next steps over the coming days and weeks.
This ruling is an important step in our ability to pursue the appeals to
try to get all of our claims heard by a jury as soon as possible. We are
pleased, however, that the court agreed that Novell is not entitled to
anywhere near the more than $20 million dollars it was seeking.
Importantly, the court ruled that Novell has no right to any royalties
from UnixWare or OpenServer sales by SCO, which is where the bulk of
SCO’s revenue is earned. This is also an important step forward in the
capitalization and reorganization plan for SCO that will allow us to
emerge from Chapter 11. We continue to disagree with the premise of this
trial and believe that Novell is not owed anything, but that they have
interfered with SCO's UNIX rights.