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Turbolinux Reaches Profitability in 2004, Both in Japan and China
[February 09, 2005]

Turbolinux Reaches Profitability in 2004, Both in Japan and China


TOKYO --(Business Wire)-- Feb. 9, 2005 -- Turbolinux, Inc. announced today that its Japan office and Chinese subsidiary have achieved substantial profits both in gross sales and net income for the year 2004 (January, 2004 - December, 2004). State-of-the-art technology, cost-effective IT solutions and innovative partnerships continue to position Turbolinux, a global leader of Linux-based solutions, as a key player in the evolving Linux operating environment in Asia.

A strong growth in domestic business has contributed to the budget surplus in its Japan headquarter. One example of this growth is the "Turbolinux Appliance Server 1.0" (TLAS), an appliance server OS, which has been sold since February 2004. It was widely acknowledged by the market as a successor of "Sun Cobalt." In less than a year, it has gained many OEM contracts such as one with NTT DoCoMo.

Another contributor to the growth in Japan is the significant increase in business Turbolinux has had with governmental and other public offices. As part of e-Japan Priority Policy Program, Linux Desktop has been strongly supported by the Japanese government. Turbolinux desktop products were adopted for a demonstration experiment and now Turbolinux is regarded as the number one Linux distributor. Moreover, the partnership with major independent hardware vendors (IHVs) such as Hewlett-Packard, combined with the licensing fees from Asian countries, accounted for a growth of 280 percent for the company. Partnerships are one of the most prospective fields for Turbolinux.


At the same time, Turbolinux China Co., Ltd., the company's Chinese subsidiary, has achieved its first budget surplus. Turbolinux has gained more than 60 percent of Chinese Linux sever OS market share for two consecutive years. It has also obtained large contracts with the country's Railway Ministry, China Mobile and Shanghai's Jing'an District.

"Turbolinux started business in Asia at an early age and is now recognized as a top brand as a Linux OS distributor," says Koichi Yano, president and COO of Turbolinux, Inc. "Although it is true that in 2002 there were many difficulties in keeping the company in business, it is now our great pleasure to achieve such a high level of profitability, both in Japan and China. Because of these impressive results, we assume that the market has accepted Turbolinux as a leader of Linux promotion in Asia. It is our mission to continue to supply high quality products and services to all the Turbolinux members," says Yano. "By doing so and continuing to rely on the strong marketability of Linux and the opportunity for growth, we will continue to work toward maintaining our current budget surplus."

About Turbolinux, Inc.

Turbolinux develops and sells the leading Linux distribution in Asia-Pacific. The operating system is optimized to run on a wide range of hardware platforms, including Intel-based servers and IBM mainframes. Turbolinux, with headquarters in Japan, plays a major role in developing Linux systems for the Japanese market, including Japanese and Chinese language "double-byte" text support. More than half of Turbolinux's staff is dedicated to Linux engineering development and support, providing expert support and custom application development services that go beyond Japanese localization issues. Turbolinux works extensively with standards bodies and partners to ensure certification and software compatibility in all business environments. For more information, visit www.turbolinux.com.

Turbolinux is a trademark of Turbolinux, Inc. Linux is a trademark of Linus Torvalds. All other product or service names are the property of their respective owners.

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