Update about MandrakeSoft status

Many of our customers, users, contributors and partners have been asking about our status since MandrakeSoft applied for Chapter 11 protection at the beginning of the year. So, I would like to take this opportunity to update you on our current situation and my beliefs for the future.

Products

We are very proud of the accomplishments introduced into Mandrake Linux 9.1. This version was released at a very difficult time, considering the problems we were facing. But our Engineering staff performed a wonderful job to deliver on-time what we consider a breakthrough release. Mandrake Linux 9.1 has received excellent reviews from individual users, professionals, and the press. 9.1 is also doing well on the commercial front, especially at our online store.

Soon after the release of Mandrake 9.1, we delivered 'Corporate Server 2.1', a robust, complete server solution with an extended release cycle – perfectly suited for the enterprise market. We are pleased with the positive feedback received from our targetted customers on this product.

We also recently announced our first delivery of MandrakeClustering, a specific distribution targeted to those who need to manage parallelism in clusters. This accomplishment is the result of long-term R&D investments made with our partners INRIA, the University of Grenoble, and Groupe Bull within the collaborative project titled 'CLIC'.

We are now busy working on Mandrake Linux 9.2, which will be delivered on schedule in the fall of 2003. You should hear more about this upcoming release shortly.

R&D

Two MandrakeSoft R&D projects have just been selected for financing by the RNTL fund, which finances pre-competitive research programs. One project is based on clustering and cycle-stealing, the other project focuses on wi-fi and nomadism. Both of these projects will greatly enhance our technology offerings.

On the same front, the Hyades European project, which focuses on clustering and real-time processing, is initiating its kick-off phase.

Services

More and more, MandrakeSoft is focusing on delivering high quality products and services in a timely manner. We have made huge efforts to improve our online store in terms of delivery speed and ease of use. We continue to strive at improving this important service.

MandrakeClub continues to be a crucial part of our future -- it receives special care and we continue to offer improved services and discounts to all Club members. We keep on renewing memberships and enrolling new members.

Chapter 11

As most of you know, MandrakeSoft filed for Chapter 11 protection at the end of January 2003. This meant that we were granted a court appointed administrator and given the opportunity to renegotiate our liabilities. This process is running smoothly, and we are happy to report that since January MandrakeSoft has been 'cash-flow positive'. Our immediate goal is to exit from this status before the end of the current year. Agreed, this is an aggressive schedule, but this is the plan that I am focused on, and I strongly believe it is achievable.

Trust from our friends

We are extremely proud and appreciative of the strong support we've received (and continue to receive) from our users, customers, partners, and from the community.

Numerous people have honored us with their trust by:

Sending words of support (which we value)

Giving us advice (which we listen to)

Providing customer leads (which we follow-up on)

Establishing business partnership (which we make effective)

Purchasing our products in retail stores, on the web, or directly from us

By subscribing to MandrakeClub

In closing, I would personally like to thank each and every person for their continued support during this challenging chapter of our company's history.

Cheers,
François Bancilhon
MandrakeSoft CEO

Copyright 2001