Filed by: The Santa Cruz Operation, Inc.
                          Pursuant to Rule 425 Under the Securities Act of 1933
                               And Deemed Filed Pursuant to Rule 14a-12
                               Under the Securities Exchange Act of 1934
                          Subject Company: The Santa Cruz Operation, Inc.
                          (Commission File No. 000-21484)



FOR IMMEDIATE DISTRIBUTION
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PRESS CONTACT:
Jodi Reinman
Software Server Division, SCO
831-427-7047
Jodire@sco.com
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                SCO TO OFFER WORLDWIDE SUPPORT TO THE ENTERPRISE

             Unisys and Compaq First to Strike Agreements With SCO


FORUM2000, SANTA CRUZ, CA (August 21, 2000) - The Server Software Division of
The Santa Cruz Operation, Inc. (Nasdaq: SCOC) today announced its new Enterprise
Support Services which provides around-the-clock support to meet the business
and time-critical requirements of enterprise customers. The company also
announced that it has signed agreements to provide this high-end service to both
Compaq and Unisys.

"We now have the infrastructure in place to provide this high level of support
essential to the enterprise," said John Henrotin, SCO Vice President of
Worldwide Services. "By signing on Compaq and Unisys, customers around the world
are now guaranteed the high level of assistance that is essential for mission
critical support of ASPs and large data centers."

Under the Unisys and Compaq agreements, SCO will train and certify IT
professionals on its UnixWare 7 and UnixWare7 NonStop Clusters software. In
turn, the companies will provide business-critical support for SCO customers,


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acting as a single point of contact, making it easier for them to manage their
IT environments. SCO will provide 24/7 high-level technical support to Unisys
and Compaq. In addition, they will provide dedicated support teams for their
major accounts.

President and General Manager, Customer Services, Compaq Global Services said,
"Compaq Global Services can help customers avoid downtime with the most robust
portfolio of high availability services in the industry, delivered by the
largest and best trained services professionals in the world. We've got more
than 40 years of experience servicing customer's business-critical environments
who can't afford a minute of downtime, and these include some of the largest
financial, telecommunications and e-commerce companies in the world."

"Server Software Division is focused at providing high availability products,"
said David McCrabb, President Server Software Division, SCO. "Customers who
deploy high availability platforms in their business environments will require
support of this nature, which can be delivered either directly from SCO or
through one of our partners."

Features of Enterprise Support Program

 .  Dedicated SCO technical support manager

 .  24/7 support and engineering escalation service

 .  Worldwide multi-site support

 .  Services for both pre-release and final products

 .  SCO ACE certified training

 .  Access to exclusive enterprise support website

"SCO's Enterprise Support Program is right in line with our Open Internet
Platform which focuses on providing the best technology and support to high
volume platform customers," said Ransom Love, CEO, Caldera Systems, Inc. "In


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light of our intent to acquire the SCO Server Software and Professional Services
Divisions, having this high level of support in place and ready to go not only
meets, but exceeds our expectations."

About The Santa Cruz Operation, Inc

With headquarters in Santa Cruz, CA, The Santa Cruz Operation, Inc. is comprised
of three independent divisions -Tarantella, Inc., the Server Software Division,
and the Professional Services Division. The Server Software Division is the
world's number one provider of UNIX server operating systems. Tarantella, Inc.
promotes a range of software technologies and products that web-enable any
application instantly, for access by users anywhere. The Professional Services
Division helps organizations create and deploy personalized IT strategies. The
three divisions sell and support their products and services through a worldwide
network of distributors, resellers, systems integrators, and OEMs. For more
information, visit SCO's home page at www.sco.com/scoinc/

                                      ###

                                      Note

Except for historical information contained herein, the matters discussed in
this release are forward-looking statements. Investors are cautioned that all
forward-looking statements involve risks and uncertainty, including without
limitation, uncertainty in domestic and international markets, changes in
customer implementation plans, increases and decreases in the value of
investments in third parties, the ability to reduce expenses, risks of
dependence upon third-party suppliers, impact and success of joint development
projects and industry partnerships, conclusion or success of strategic
opportunities, timely availability of products, market acceptance of new
products, including open source- based and internet-related products, the impact
of competitive products, general market conditions, and other risks detailed
from time to time in SCO's SEC filings, including forms 10-Q and 10-K (copies of
which are available from SCO without charge in hard copy or online at
www.sco.com/investor, or www.sec.gov/edgarhp.htm). SCO disclaims any intention
or obligation to publicly update or revise any forward-looking statements,
whether as a result of events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.

SCO, The Santa Cruz Operation, the SCO logo, Tarantella, SCO ACE, UnixWare 7 and
UnixWare are trademarks or registered trademarks of The Santa Cruz Operation,
Inc. in the USA and other countries. UNIX is a registered trademark of The Open
Group in the United States and other countries. Linux is a registered trademark
of Linus Torvalds in the United States and other countries. NonStop is a
registered trademark of Compaq Computer Corporation in the US and other
countries. All other brand or product names are or may be trademarks of, and are
used to identify products or services of, their respective owners.

Additional Information and Where to Find It:  It is expected that Caldera will
file a Registration Statement on SEC Form S-4 and Caldera and SCO will file a
Joint Proxy Statement/Prospectus with the SEC in connection with the
Acquisition, and that Caldera and SCO will mail a Joint Proxy
Statement/Prospectus to stockholders of Caldera and SCO containing information
about the Acquisition.  Investors and security holders are urged to read the
Registration Statement and the Joint Proxy Statement/Prospectus carefully when
they are available.  The Registration Statement and the Joint Proxy
Statement/Prospectus will contain important information about Caldera, SCO, the
Acquisition, the persons soliciting proxies relating to the Acquisition, their
interests in the Acquisition, and related matters.  Investors and security
holders will be able to obtain free copies of these documents through the
website maintained by the SEC at http://www.sec.gov.  Free copies of the Joint
Proxy Statement/Prospectus and these other documents may also be obtained from
Caldera by directing a request through the Investors Relations portion of
Caldera's Web site at http://www.caldera.com or by mail to Caldera Systems,
Inc., 240 West Center Street, Orem, Utah  84057, attention:  Investor Relations,
telephone (801) 765-4999; or from SCO by directing a request through the
Investors Relations portion of SCO's Web site at http://www.sco.com or by mail
to The Santa Cruz Operation, Inc., 425 Encinal Street, Santa Cruz, California
95061, attention:  Investor Relations, telephone (831) 427-7399.


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In addition to the Registration Statement and the Joint Proxy
Statement/Prospectus, Caldera and SCO file annual, quarterly and special
reports, proxy statements and other information with the SEC.  You may read and
copy any reports, statements or other information filed by Caldera or SCO at the
SEC public reference rooms at 450 Fifth Street, N.W., Washington, D.C. 20549 or
at any of the SEC's other public reference rooms in New York, New York and
Chicago, Illinois. Please call the SEC at 1-800-SEC-0330 for further information
on the public reference rooms.

Caldera's and SCO's filings with the SEC are also available to the public from
commercial document-retrieval services and at the Web site maintained by the SEC
at http://www.sec.gov.