Penguin Computing, one of the pioneering linux-cluster hardware vendors, today announced that they will acquire Scyld Computing. Scyld is a Linux cluster software company founded by Donald Becker, a very well known NASA scientist who was one of the first to use Linux clusters for high performance computing.

The merger of Penguin Computing hardware and Scyld software will create a new strong player in the field of Linux clusters for CFD computations.

Links:

http://www.scyld.com

http://www.penguincomputing.com/

The full press-release can be found below:

June 10, 2003 09:01 AM US Eastern Timezone

Linux Server Company Penguin Computing to Acquire Scyld Computing, the Leading Developer of Beowulf High-Performance Clustering Software

SAN FRANCISCO--(BUSINESS WIRE)--June 10, 2003-- Acquisition Expands Penguin's Ability to Deliver Next Generation Clustering Solutions

Penguin Computing, the leading Linux server company, announced today that it has signed a definitive agreement to acquire privately-held Scyld Computing Corporation. Scyld is the technology leader in Beowulf cluster management software, which enables scaleable and manageable high-performance computing clusters using Intel (NASDAQ: INTC) and AMD (NYSE:AMD) based servers. Scyld will maintain its own brand as a software division within Penguin Computing and will continue to operate from its East Coast office.

Under the terms of the agreement, privately-held Penguin Computing will issue shares of Penguin stock in exchange for all of the outstanding securities of Annapolis, MD-based Scyld Computing. Sam Ockman, founder and CEO of Penguin Computing, will lead the combined companies as president and CEO. Donald Becker, former NASA scientist, early Linux networking developer, founder of Scyld, and key developer of the Beowulf software technology, will serve as the Chief Technology Officer.

The merger will make Penguin Computing the definitive provider of Linux-based high-performance computing solutions. Customers will be able to choose from a wide array of highly-configurable server building blocks, advanced cluster management software and a wide range of technical consulting services to meet their specific application requirements and budgets. End users worldwide will benefit from the companies' combined product breadth and unmatched technical expertise.

"Don Becker pioneered Beowulf clustering under Linux in 1994 and has been one of the industry's staunchest advocates," said Sam Ockman, president and CEO of Penguin Computing. "Over the past four years, Scyld has invested aggressively in the development of its software and has earned a strong reputation in the Beowulf clustering market. The Scyld software reduces the complexity of provisioning and managing a Beowulf cluster to that of administering a single Linux workstation."

"Our software addresses Beowulf users' dual concerns of cluster manageability and scalability. Our technology brings both better performance and greater ease of use, whether your cluster is made up of eight computers or over 1000," said Don Becker, CTO of Scyld. "For most applications we'll soon be able to offer an extremely compelling alternative to traditional monolithic supercomputers."

Both companies have received support from the venture capital community. Lead investors in Penguin Computing include ING Capital LLC, a subsidiary of ING, and Dragon Venture. Bob Young, co-founder and former Chairman and CEO of Red Hat (NASDAQ: RHAT), is an investor in Scyld Computing.

About Scyld Computing Corporation

Based in Annapolis, Maryland, Scyld Computing Corporation is the leading developer of next-generation Beowulf cluster software. They provide software, professional services, and support for deploying and managing high performance computing clusters. Donald Becker, founder and CTO, and other Scyld developers are known for their extensive contributions to Linux and to high performance cluster computing. For more information, please visit Scyld Computing at www.scyld.com.

About Penguin Computing

Penguin Computing is a leading provider of high-performance Linux-based computer systems, system management software, and integration services based in San Francisco, CA. Penguin's extensive customer base includes Fortune 1000 companies, educational institutions, and government agencies. Penguin was founded in 1998 by Sam Ockman, a leader in the Open Source software movement. For more information, please visit Penguin Computing at www.penguincomputing.com.

For media inquiries, contact Melissa London, Hats Off Communications for Penguin Computing, at 919-870-6977, Melissa@hatsoff.net.

For investor inquiries, contact Michael Lanham, Penguin Computing, at 415-358-2600.

LINUX is a trademark of Linus Torvalds. PENGUIN COMPUTING is a registered trademark of Penguin Computing. SCYLD is a registered trademark of Scyld Computing Corporation. All other names and trademarks are the properties of their respective owners.