Date: Fri, 16 Feb 2001 12:46:10 -0500
From: Ross Laver <rlaver@e-smith.com>
Subject: e-smith extends olive branch to Microsoft

e-smith extends olive branch to Microsoft

Provider of Linux-based server solutions promises it won't steal
Microsoft's code


BOSTON, February 16, 2001 - In a gesture of friendship and
reconciliation, e-smith, inc. wishes to reassure Microsoft Corp. that it
has no plans to violate the Redmond giant's intellectual property
rights.

"There's really no need for Bill Gates and his people to fear the loss
of their intellectual property," e-smith CEO Joseph Morrison said. "The
truth is, we don't want their code. Why would we, when we already have
something that's much better for our customers?"

In an interview this week, James Allchin, Microsoft's Windows
operating-system chief, Jim Allchin, suggested that freely distributed
software code such as Linux is un-American and poses a grave threat to
intellectual property rights.

"Open source is an intellectual-property destroyer," Allchin said. "I
can't imagine something that could be worse than this for the software
business and the intellectual-property business."

Allchin added that the open-source business model could stifle
initiative in the computer industry. "I'm an American, I believe in the
American Way," he said. "I worry if the government encourages open
source, and I don't think we've done enough education of policy makers
to understand the threat."

Responded Morrison: "Far from being a threat to the American Way, open
source is all about volunteerism and enlightened self-interest, two
things that have been part of the American spirit at least since the
Boston Tea Party."

Morrison, whose company produces the world's leading open source server
solution for small-business, said he can understand why Microsoft is
afraid to compete with companies such as e-smith. e-smith's flagship
software product, the Linux-based e-smith server and gateway, is not
only faster to install and easier to use than Microsoft's Small Business
Server, it is also far more reliable and cost-effective.

Still, Morrison said Microsoft is mistaken if it believes that open
source software threatens intellectual property rights. Companies such
as e-smith that contribute their code to the open source community do so
voluntarily because it makes good business sense and because they share
the open source movement's passion for innovation. Meanwhile, older,
more traditional companies such as Microsoft that prefer to keep their
code to themselves are free to do so, with no threat whatsoever to their
intellectual property.

"e-smith creates innovative, reliable server solutions for small
businesses," Morrison said. "Our customers want the latest and most
advanced networking technology, which is why we base our solutions on
Linux. If Microsoft chooses to stick with older, legacy technologies,
we certainly will not complain."

About e-smith, inc.

Founded in 1999, e-smith, inc. is headquartered in Boston,
MA, with operations located in Ottawa, Canada. The
company's flagship product, the e-smith server and gateway, is an
open-source, Linux-based network server that offers businesses all of
the advantages of the Internet without the high cost and technical
complexity. Since its release, the e-smith server and gateway has been
installed on tens of thousands of servers in dozens of countries
worldwide. e-smith's investors include Greylock, a premier
Boston-based venture capital firm, and Red Hat Inc., a leading
developer and provider of open-source software and services.

CONTACT:
Collaborative Communications Inc.
Laura Cleveland
mailto:cleveland@collaborative.com
(617) 520-9133

or
Sharon Dratch
mailto:dratch@collaborative.com
(617) 520-9152