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From: Avi Dines <amendoza@schwartz-pr.com>
Subject: The SCO Group Reports Third-Quarter Results
Date: Thu, 14 Aug 2003 13:30:09 GMT

The SCO Group Reports Third-Quarter Results

Conference Call
The SCO Group will host a conference call at 9 a.m. MDT today, August 14,
2003, to discuss third-quarter fiscal 2003 results.

To participate in the teleconference, please call 800-811-0667 or
913-981-4901, code: 452322, approximately five minutes prior to the time
stated above. You may also join the call in listen-only mode via Web cast
at http://ir.sco.com/medialist.cfm. There will be a subsequent replay of
the teleconference available on the SCO IR Web site 48 hours after the
conference call.

LINDON, Utah - Aug. 14 - For the third quarter of fiscal 2003 ended July
31, The SCO Group, Inc. Nasdaq: SCOX) reported net income of $3.1 million,
or $0.19 per diluted share, on revenue of $20.1 million, compared to a net
loss of $4.5 million, or $0.35 per diluted share, on revenue of $15.4
million for the comparable quarter of the prior year. Revenue for the third
quarter of fiscal 2003 from the Company's operating system platforms was
$12.8 million, and revenue from its SCOsource licensing initiative was $7.3
million, both within the range of previous guidance.

For the first nine months of fiscal 2003, the Company reported net income
of $6.9 million, or $0.47 per diluted share, on revenue of $55.0 million,
compared to a net loss of $22.1 million, or $1.58 per diluted share, on
revenue of $48.8 million for the comparable nine-month period of fiscal
2002. The Company's current fiscal year ends October 31, 2003.

"During the quarter ended July 31, 2003, SCOsource, our division for
licensing and protecting the Company's UNIX(R) intellectual property,
generated $7.3 million in revenue and contributed $5.6 million to gross
margin.  Our SCOsource initiative continues to gain momentum as we pursue
enforcement of the Company's intellectual property rights," said Darl
McBride,president and CEO.

McBride continued, "This is our second consecutive quarter with net income
and positive cash generated from operations. These results have
strengthened our balance sheet and overall financial position. We intend to
use this capital to continue our intellectual property protection and
licensing initiative as well as for launching SCOx, our Web services
strategy."

"We expect that revenue for our fourth quarter, ending October 31, 2003,
will be in the range of $22 to 25 million. The magnitude of our SCOsource
licensing opportunities and our confidence in the SCOsource revenue
pipeline is growing each quarter," said McBride.

About SCO
The SCO Group (Nasdaq: SCOX) helps millions of customers in more than 82
countries around the world grow their businesses everyday. Headquartered in
Lindon, Utah, SCO has a network of more than 11,000 resellers and 8,000
developers. SCO Global Services provides reliable localized support and
services to partners and customers. For more information on SCO products
and services, visit http://www.sco.com.

SCO and the associated SCO logo are trademarks or registered trademarks of
The SCO Group, Inc. in the U.S. and other countries. UNIX is a registered
trademark of The Open Group in the United States and other countries. All
other brand or product names are or may be trademarks of their respective
owners.

Forward Looking Statements
The statements set forth above include forward-looking statements that
involve risks and uncertainties. The Company wishes to advise readers that
a number of important factors could cause actual results to differ
materially from those projected in the forward-looking statements. The
Company has only realized revenue from its SCOsource licensing initiative
during the last two quarters and the intellectual property rights that it
is asserting in seeking to enter into licensing agreements are subject to
pending litigation, making it difficult to predict the extent of future
revenues from this source. Other factors that may affect the forward
looking statements include the ability of the Company to successfully roll
out its new services and solutions to service providers in its existing
channels; the acceptance of such offerings by existing service providers
and customers; the ability of the Company to successfully meet its revenue
projections, which are based on the ability of the Company to enter into
new licensing agreements and the continued acceptance in the marketplace of
historical products; the Company's ability to compete effectively with
other solutions providers; new and changing technologies and customer
acceptance of those technologies; and claims of infringement of third-party
intellectual property rights. These and other factors, which could cause
actual results to differ materially, are discussed in more detail in the
Company's filings with the Securities and Exchange Commission.

For the Condensed Consolidated Balance Sheets, visit
http://ir.sco.com/releases.cfm?ReleaseID=116073

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