BSDi Acquires Telenet System Solutions, Inc.

The New BSDi To Deliver Internet Infrastructure-Grade Software, Systems And Solutions

Colorado Springs, Colo., June 9, 2000 - Berkeley Software Design, Inc. (BSDi), the recognized leader in Internet infrastructure-grade systems, today announced it has acquired Telenet System Solutions, Inc. of San Jose, CA, a leading Internet infrastructure server supplier. The acquisition expands BSDi's capabilities as a developer and provider of advanced Internet infrastructure-grade systems and solutions.

The new BSDi Internet Systems Solutions Group will incorporate Telenet Systems to develop and deliver integrated Internet systems and solutions for Internet Service Providers (ISPs), Network Service Providers (NSPs), Application Service Providers (ASPs), enterprise data centers, outsourcers, system integrators, VARs and others - most of whom currently build or procure their own solutions from scratch, with disparate hardware and software components.

"About.com, the largest Internet news, information, and entertainment site, and the eighth largest Internet property, runs its Web servers on FreeBSD and Telenet systems," said John Wojcik, Senior Network Engineer at About.com. "Telenet's 2U servers give us higher rack density than Compaq, and their integration support gets us the most reliable hardware, device drivers and configurations that fit our requirements."

"TTSG uses BSD/OS-powered Telenet systems exclusively for our Intel-based servers, because their people and products are reliable and consistent," said Scott Ellentuch, President of TTSG. "And we host our customers' dedicated applications on BSD/OS because it is robust, stable, and commercially supported."

"With the acquisition of Telenet Systems, BSDi is now positioned to furnish service providers and other Internet- based suppliers with a single source for integrated Internet infrastructure-grade systems," said Gary Johnson, Chief Executive Officer of BSDi. "Through BSDi's unparalleled access and influence with the BSD global open source community, its staff of world-renowned Internet technical experts is able to drive innovation and deliver solutions that provide the highest levels of reliability, availability, scalability, performance, and security at the lowest total cost of ownership."

BSDi's expanded offerings bring a range of benefits to customers including:

• Convenient one-stop solution for Internet server systems, software and support
• Expertise in hardware, operating systems, networking and integration services
• High-density system solutions with the best price- performance per rack unit
• Custom solutions and configurations tuned for data centers, service providers and other high-traffic implementations
• Superior reliability and price-value
• Open source advocacy, support, and participation in BSD- based projects

"To build high-reliability systems, most Internet providers are forced to build or configure their own hardware and integrate the components they need, when they would be better off buying integrated Internet systems from an Internet-focused vendor like BSDi," said Billy Bath, Chief Executive Officer of Telenet Systems Solutions.

"Now, our customers can concentrate on what they do best and move ahead quickly in their respective businesses," said Mark Garver, BSDi's Group Executive of Marketing and Internet Systems Solutions. "Our reliable, purpose-built Internet infrastructure-grade systems and solutions help customers deploy their Internet-based offerings more quickly and cost-effectively."

BSDi's Internet Systems Solutions Unit will offer Intel and SPARC based servers developed, integrated, and delivered for almost any kind of Internet-related purpose, from rack- mount Web, E-commerce and DNS/E-mail servers to advanced Internet devices and appliances. The new offerings will also include RAID storage subsystems and workstation products.

About BSDi

Berkeley Software Design, Inc. (BSDi) is a privately held company recognized as a leader in Internet infrastructure- grade software, systems, services and support. Its popular BSDi Internet Super Server, BSD/OS, and FreeBSD operating systems serve as the standard platforms for many of the Internet's leading Web sites, service providers and devices. Headquartered in Colorado Springs, CO, BSDi is located on the Web at http://www.bsdi.com/.

BSD, BSD/OS, and BSDi are trademarks or registered trademarks of Berkeley Software Design, Inc. Other trademarks are property of the respective owners. BSD technologies were originally developed by the University of California, Berkeley and its contributors.