For Immediate Release

For More Information Contact:
Jeanette DePatie
Top Beanie 
Propellerhead PR
Voice: 314.588.8502 x 118
E-mail: jdepatie@propellerhead-inc.com

Official Statement from Linuxgruven’s Founders

Last year, Linuxgruven did extremely well.  Growth was strong; sales were
high.  As of the 3rd Quarter in 2000 things looked very promising. Near
that time, we passed day to day responsibility of the company to a
management team comprised of a CEO, a CTO, a COO and ultimately a CFO.
This team had full access to all the financial information about the
company and managed the company checkbook.  We decided to focus on long
term growth and trusted them to handle the day-to-day business.
Disappointingly since they took charge of the day to day operations of the
company, our financial situation has changed.

Several weeks ago, we the board spoke with the management team about this
problem. We made it clear that a change in direction was in order.  Due to
a disagreement about how to handle this financial reorganization, several
members of that new management team are no longer with our company.

Since leaving our company, some of these previous employees have vowed to
start a new company.  We now consider them our competitors.  We hope that
opinions expressed by these previous employees will be viewed accordingly.

The founders, Mike Lebb and I, have now taken complete control of
Linuxgruven’s day-to-day operations.  Mike and I are committed to
increasing the efficiency of the current operation and moving forward with
a leaner and more streamlined Linuxgruven.  We regret that this will
inevitably lead to temporary layoffs for some employees; however, we have
not officially laid anyone off as of yet.  We will keep the media and our
employees apprised of the situation.  We are still working out the details
and hope that many of our employees can come back as our financial
situation improves.

However, we've also secured the services of an outplacement firm to help
our employees and trainees find new positions if they so choose.

We realize that many of people have questions regarding employment status
and other important issues.  We are doing everything we can to get back to
you. We will be regularly updating our Website (www.linuxgruven.com) with
new information, as it becomes available.

Mike and I are fully committed to Linuxgruven.  We were highly successful
under our direct management a few months ago and we will be again very
soon.

We are doing everything we can to move things forward and have every
confidence that we will ultimately have a positive outcome.

James Hibbits,
Co-founder and Acting CEO
Linuxgruven