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MTI to Buy 20% Stake in Developer of Linux Software

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TIMES STAFF WRITER

Joining the growing chorus of companies supporting a renegade computer operating system, Anaheim-based MTI Technology Corp. on Monday said it agreed to purchase a minority stake in a leading developer of Linux-based software.

MTI, a data storage management company, said it will buy 20% of Orem, Utah-based Caldera Systems Inc. and MTI plans to support the Linux operating system in future product offerings.

MTI said it will offer consulting services for the growing Linux market, and use Linux to develop advanced storage products.

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Terms of the deal were not released. An MTI spokesman said the purchase agreement should be wrapped up “within a couple of weeks.”

MTI hopes to build Linux, which currently is used mainly by computer enthusiasts and computer infrastructure areas, into an operating system used by mainstream businesses in critical operations.

The announcement coincided with the first major Linux trade show being held in San Jose this week and comes on the heels of moves by other big technology companies, including IBM Corp., Hewlett-Packard Co., Silicon Graphics Inc., and Dell Computer Corp., to offer Linux, a freely distributed rival to computer operating systems sold by Microsoft Corp., on their machines.

Intel Corp. has also been reported to be investing in VA Research Inc., a developer of computers that use Linux.

Like other leading Linux companies such as Red Hat Software Inc., Caldera distributes Linux for free and makes money by selling services and supporting software for those who use the operating system, which is valued by many enthusiasts for its simplicity and reliability.

MTI stock closed Monday at $6.13, up 38 cents.

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