Red Flag, Miracle Linux and Hancom announce the establishment of Asianux Corporation.

BEIJING, April 24, 2006 - Building on two years of success working together, Red Flag Software Co., Ltd. (Beijing China, Executive President: Chris Zhao. Hereafter referred to as Red Flag), Miracle Linux Corporation (Tokyo Japan, President: Takeshi Sato. Hereafter referred to as Miracle Linux) and Hancom, Inc. (Seoul Korea, President & CEO: Jong-Jin Baek. Hereafter referred to as Hancom) announced today their intention to form a new joint venture to develop Asianux operating system and Open Source Software. The new joint venture will be called the Asianux Corporation and will be based in Beijing; it should begin operations in May 2006 after the Chinese government approves its business license. China was selected for the development, technical support and marketing of Asianux since many Asia-Pacific head-offices and R&D centers of global IT companies are located there.

The three companies intend for the Asianux Corporation to be the main distributor of the common framework operating system in Asia-Pacific with continuous collaboration to develop local language and to fulfill government requirements.

The Asia-Pacific market has a terrific potential for the next 10 years. In particulare, the combined GDPs of China, Korea and Japan is 7,703 billion USD compared with 11,667 billion USD for USA GDP in 2004. If the Chinese market would increase as CAGR 8% in next ten years, the combined China, Korea and Japan market would close in on the USA market around 2015.

Additionally in 2004, the Chinese, Korean and Japanese governments organized the North East Asia Open Source Software Promotion Forum. As such, Open Source Software including Linux is being used in many government projects such as NEIS (National Education Information System) in Korea.

The joint venture will appoint Mr. Zhao Xiaoliang, President of Red Flag , Mr. Jong-Jin Baek, CEO of Hancom, and Mr. Takeshi Sato, CEO of Miracle Linux as key members of the Executive Management of the Asianux Corporation.

The joint venture expects revenue in the first year with China and Japan markets growing 46% and Korea rising 45%. The joint venture will seek another Asian partner where the IT market has a CAGR of over 10%, such as India, Thailand, Malaysia, Indonesia, Philippine and Vietnam.
Additionally the joint venture will form an Advisory Committee and an Open Asianux community with hardware and software vendors to lay out the future technology and functions.

Chris Zhao, Executive President of Red Flag, states,
"Today Asianux reached a significant milestone. The establishment of the Asianux Corporation makes customers and partners confident in the bright future of Asianux. Now, more than 50,000 enterprise servers are running Asianux in CJK. And it has gotten widely support from global partners.

The Asianux model is co-development, co-branding and co-service, through wide cooperation to establish a unified Linux platform across the AP. The next step is to recruit more members to join Asianux development and cover more AP market.

The Asianux Corporation will continuously increase investment in development to deliver high quality products to market. We will also increase investment to support ISV/IHV partners and jointly provide a wide range of value-added solutions to customers.

Besides, we will cooperate with partners, local Linux communities and related government agencies to jointly establish the largest Asia Linux community and make more contribution to Linux.",

Miracle Linux President Takeshi Sato said,
"The Miracle Linux Corporation participates in the establishment of the joint venture "Asianux Corporation" with Red Flag Software Co., Ltd in China and Hancom, Inc in Korea.
Our objective is to leverage our business into the world-wide market including Asia-Pacific through the joint venture company.

The joint venture allows us to reinforce our relationship with global IHVs and ISVs. They will widely provide certified hardware and software that run on Asianux on the market.

The three companies will create one more powerful company, able to reach the market faster and provide superior products with even better reliability, availability and services. In order to achieve this, we will support all of our users’ requirements, from SMB to mission-critical market. I believe that Asianux success equals to MIRACLE LINUX success, and vice versa."

Jong-Jin Baek, CEO of Hancom said,
“The 3 companies of the Asianux consortium targeting Asian Standard Linux have agreed to form a Joint Venture.

We’ve agreed to establish the Asianux Corporation in order to give body to the Asianux project and seek potential partners to cover the whole Asian area.

Thanks to the Asianux Corporation, we expect to advance our development process and gain a strong reputation as one of the world top 3 Linux distributions (Red Hat, Suse, Asianux).

The Asianux Corporation solves the continuity issue in terms of organization and service.

Long-term roadmap, stable customer services and solid partnerships with vendors shall be available since we have a perpetual entity beyond the boundaries of consortium-type project."

►Asianux Corporation Reference :
1- Company Profile:

  • Joint Venture Name: Asianux Corporation
  • Establishment Estimated Date: 2nd quarter, 2006
  • Location: Beijing, China

2 - Mission:

  •  Development/Collaboration: Development and business activities are jointly performed
  • Business Model: Sales & Consulting of Linux Operating System
  • Profit Model:
    • Seeking additional partners in Asia to co-develop and distribute Asianux operating system
    • Pre-install bundle business for global hardware vendors
    • Service & Consulting activities for partners and customers