Tokyo, JAPAN - April 6, 2004 --
VA Linux Systems Japan K.K. (VA Linux), Japan's leading Linux and Open Source solutions provider, today announced that it has completed a private placement of 3,790 shares of its common stock to NTT COMWARE CORPORATION and NTT DATA CORPORATION, for gross proceeds of JPY 189 million.

The 50% of the gross proceeds has added to paid-in capital, and VA Linux's paid-in capital has increased from JPY 100 million to JPY 194 million. NTT COMWARE CORPORATION, an existing stockholder, has purchased additional 2,800 shares and NTT DATA CORPORATION has purchased 990 shares. As a result of this transaction, Sumitomo Corporation now has about 56% of issued common shares of VA Linux, and continues to be VA Linux's largest stockholder.

Tetsuya Ueda, president and CEO said, "I believe that VA Linux's valued skills on the Linux Kernel and Open Source software made this financing possible. This event is not only strengthening cooperation between NTT COMWARE CORPORATION, NTT DATA CORPORATION, and VA Linux, but also accelerate the Linux deployment in carrier-grade enabling technologies in enterprise market. And further, I assume this relationships strengthen our brand image."

About VA Linux Systems Japan K.K.

Founded in September 2000, VA Linux Systems Japan is a leader in Open Source consulting market. Through its Linux Kernel skill, VA Linux Systems Japan is providing advanced technology consultings and software solutions based on Linux and Open Source. http://www.valinux.co.jp/
http://www.valinux.co.jp/

About Stockholders

Sumitomo Corporation is the largest stockholder, stockholders include Sumitomo Corporation, VA Software Corporation, NTT COMWARE CORPORATION, IT SERVICES Corporation, NEC Corporation, Sumisho Computer Systems Corporation, and NTT DATA CORPORATION.

About Trademarks

Linux is a registered trademark of Linus Torvalds.
All other brand and product names are trademarks or registered trademarks of their respective holders.

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