Paragon Software and Xandros Shatter Last File Barrier within a Multi-platform

June 20, 2006

Buggingen, Germany and  NEW YORK, NY —Paragon Software Group, the leading
provider of innovative software solutions in storage management and data safety
and Xandros, the leading provider of easy-to-use Linux alternatives to Windows
desktop and server products, today announced that Paragon's “NTFS for Linux” is
shipping with the upcoming Xandros desktop release. The technology shatters the
last file barrier to transparent file sharing within a multi-platform framework.
Xandros users will now be able to edit and save their music, photos and
documents to shared folders on any Windows or Mac PC.

“Xandros has always been the leader in providing the seamless compatibility
between Windows and Linux, and we are delighted to contribute to the first
desktop solution bridging the file gap between the two systems,” said Konstantin
Komarov, CEO of Paragon Software Group. “We are especially pleased to see our
technology being put to use in the home computer space, where many households
are experimenting with Linux on their second or third machine.”

“Xandros users could always view files on Windows machines and copy them to
Xandros, and with the integrated Paragon file system technology, they can now
edit and save to Windows as well in a completely transparent fashion,” said
Andreas Typaldos, Xandros CEO.  “This makes Xandros the first Linux distribution
to really allow true coexistence between the Windows and Linux, which is huge in
practical terms when you're collaborating in a typical mixed environment. For
example, a user can upgrade a PC from XP to Xandros instead of the expensive
Vista and continue to read and write files on the previous Windows partition as
before."

Features, pricing, and availability of the new line of Xandros Desktops,
designed to enhance the consumer's digital life, will be announced shortly. The
Paragon “NTFS for Linux” facility will be included with the fully featured
version of the new Xandros Desktop and will be available for other editions
through the Xandros Networks update service and store. For future product and
purchase details, please visit www.xandros.com.

About Paragon Software Group

Paragon Software Group (PSG) is a German based company founded in 1994, with
offices in USA, Germany, and Russia. Paragon Software Group is also active in
Asian markets. PSG’s products and services include System Technology (storage
management and data safety), Smart Handheld Devices (dictionaries, games,
utilities and handwriting recognition for SHD), Epocware (software for Symbian
platform), Intelware (internet related software development). For additional
information please contact us at www.paragon-software.com.

About Xandros

Founded in 2001 with headquarters in New York, offices in Frankfurt and Mumbai,
and research and development facilities in Ottawa, Xandros, Inc. is the leading
provider of easy-to-use Linux alternatives to Windows. Its Debian-based products
range from standalone consumer desktops to end-to-end enterprise desktop,
server, and management solutions featuring workflow automation and centralized,
remote administration. Xandros pioneered low cost, graphical operating systems
that leverage existing skill sets and provide seamless compatibility with
Microsoft Windows programs and networks. For more information, please visit
www.xandros.com.

Xandros® is a registered trademark of Xandros Inc. All other trademarks and/or
registered trademarks are the property of their respective owners.

Contact:
Mrs. Natia Kartvelishvili
PR Manager

Paragon Technologie GmbH
Pearl Str. 1-3
79426 Buggingen
Germany

Tel. +49(0) 7631 360930
Fax  +49(0) 7631 36042939

Internet: www.paragon-software.com
Email   : pr@paragon-software.com