The SCO Group Files Formal Reorganization Plan With Bankruptcy Court

SCO announces public auction of mobile business and UNIX OpenServer business
lines

LINDON, Utah, Jan. 12 /PRNewswire-FirstCall/ -- The SCO Group, Inc., (Pink
Sheets: SCOXQ) a leading provider of UNIX(R) software technology and a
provider of mobility solutions, today announced that it has filed a formal
Reorganization Plan ("Plan") and Disclosure Statement with the Bankruptcy
Court in Delaware on Thursday, January 8, 2009.

As part of the proposed reorganization plan, SCO intends to conduct a public
auction to secure additional operating funds and investment in its OpenServer
product line as well as its mobile business. The Company believes that the
auction will maximize the value of an asset sale and will ensure the ongoing
development of these businesses. Several investment groups have expressed
interest to SCO in acquiring assets via the public auction. "We believe that
with this approach, it will maximize customer and shareholder value and
expedite the investor process" said Jeff Hunsaker, president and chief
operating officer, SCO Operations, "One goal of this approach is to separate
the legal defense of our intellectual property rights from our core product
business. The auction process is expected to ensure that the future revenue
from the OpenServer and mobile businesses stays with those assets and provides
an uninterrupted path forward for our customers, products and employees," said
Hunsaker.

In the event that certain SCO assets are not sold, SCO will continue to sell
and support its UNIX and mobile products and services including UnixWare,
OpenServer, SCO Mobile Server and select mobile applications. These efforts
will be supplemented by certain cost cutting measures and by pricing and
licensing options for customers. SCO is also expected to ship key products in
2009 including SCO UNIX Virtual product lines for VMware and Hyper-V that
allows SCO legacy applications to run on modern hardware. It also is expected
to ship FCmobilelife and FCtasks for the iPhone.

The Plan is subject to, among other conditions, Bankruptcy Court approval. A
hearing for approval of the Disclosure Statement is scheduled before the
Bankruptcy Court on February 25, 2009.

"This is an important step forward in emerging from Chapter 11 bankruptcy,"
said Darl McBride, chief executive officer of The SCO Group. "Following the
adverse summary judgment ruling in August, 2007 in the Novell litigation, SCO
was forced to protect its business, shareholders and customer base. Since
then, we have worked diligently to prepare a plan to emerge from bankruptcy
protection and move our products and customers forward. We believe this plan
helps us reach that goal."

Now in its 30th year, SCO has over 2 million servers that have been installed
worldwide. SCO looks forward to implementing its new reorganization plan and
to serving its valued customers and partners.

About SCO

The SCO Group (PINKSHEETS: SCOXQ.PK) is a leading provider of UNIX software
technology and a provider of mobility solutions. SCO offers UnixWare for
enterprise applications and SCO OpenServer for small to medium businesses.
SCO's innovative and reliable solutions help customers grow their businesses
everyday. SCO owns the UNIX operating system, originally developed by
AT&T/Bell Labs and is the exclusive licensor to UNIX-based system software
providers. The Me Inc. product line focuses on creating mobile platforms,
services and solutions for businesses and enhances the productivity of mobile
workers.

Headquartered in Lindon, Utah, SCO has a worldwide network of resellers and
developers. SCO Global Services provides reliable localized support and
services to partners and customers. For more information on SCO products and
services, visit www.sco.com.

SCO and the associated logos are trademarks or registered trademarks of The
SCO Group, Inc. in the U.S. and other countries.

Forward-Looking Statements

The statements contained in this press release regarding (i) the transactions
contemplated in the memorandum of understanding and the Company's plan of
reorganization, (ii) the contemplated benefits of the Company's plan of
reorganization for customers, partners, stockholders, employees, and others,
(iii) the Company's business plan regarding its UNIX product line, new
products and services and the pursuit of its legal claims, (iv) the
expectations of potential investors with respect to the Company and its
prospects, (v) bankruptcy court processes and approvals respecting the
Company's plan of reorganization, (vi) other statements that are not
historical facts are forward-looking statements and are made under the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
These statements are based on management's current expectations and are
subject to risks and uncertainties. We wish to advise readers that a number of
important factors could cause actual results to differ materially from
historical results or those anticipated in such forward-looking statements.
These factors include, but are not limited to developments with respect to the
confirmation of a plan of reorganization, the outcomes and developments in our
Chapter 11 case, court rulings in the bankruptcy proceedings, the impact of
the bankruptcy proceedings or other pending litigation, developments in our
litigation, our cash balances and available cash, continued competitive
pressure on the Company's operating system products, which could impact the
Company's results of operations, adverse developments in and increased or
unforeseen legal costs related to the Company's litigation, the inability to
devote sufficient resources to the development and marketing of the Company's
products, including the Me Inc. mobile services and development platform, and
the possibility that customers and companies with whom the Company has formed
partnerships will decide to terminate or reduce their relationships with the
Company. These and other factors that could cause actual results to differ
materially from those anticipated are discussed in more detail in the
Company's periodic and current filings with the Securities and Exchange
Commission, including the Company's Form 10-K for the fiscal year ended
October 31, 2008, and future filings with the SEC. These forward-looking
statements speak only as of the date on which such statements are made, and
the Company undertakes no obligation to update such statements to reflect
events or circumstances arising after such date, except as required by law.

SOURCE The SCO Group, Inc.

Chantell Ferrin of The SCO Group, Inc., +1-801-932-5760, cferrin@sco.com