[July 12, 2011]

Sebring Software, Inc. Announced the Acquisition of Award Winning Scalix Email and Calendaring Platform from Xandros, Inc.

Sebring Software, Inc. (OTC BB: SMXI) a collaborative integration software company offering on-premises and CLOUD solutions, today announced the acquisition of Award winning Scalix Email and Calendaring Platform from Xandros, Inc.

Sebring Software, Inc. announced the recent signing of a definitive agreement to acquire Scalix Corporation from Xandros, Inc. Scalix was acquired by Sebring for a total purchase price of $12 million or 5.66 times 2010 revenues. The payments are $5,750,000 in cash and 6,250,000 common shares of Sebring's stock, which for this transaction was valued at $6,250,000 or $1.00 per share. The cash payments are being made over six months, and the stock to Xandros will be issued following the cash payments.

Sebring Software, Inc. CEO Leif Andersen said: "We are very pleased to have executed an agreement to acquire Scalix Corporation, whose platform we believe is truly the most robust Linux-based e-mail and calendaring platform available today. Just as the market is moving to the more reliable and affordable Linux-based solutions, we are confident that the multi-billion corporate market for e-mail, calendaring and collaboration software will also move towards Linux-based solutions. As more and more companies move to CLOUD-based solutions, Linux-based systems such as Scalix will be the winners. Linux-based systems are simply more affordable and far more reliable."

Andreas Typaldos, CEO of Xandros, Inc. commented:

"Clearly, Sebring Sofware's executives are not alone in their enthusiasm for Linux-based e-mail platforms. In recent years we have witnessed the acquisitions of competitors to Scalix such as the acquisition of Zimbra by VMware (NYSE: VMW), after Yahoo had first purchased it for $350M, and the acquisition of PostPath by Cisco (News - Alert) Systems (NASDAQ: CSCO) for $225 million. As a result of the sale of Scalix, we are becoming a major shareholder of Sebring Software, Inc. We believe that Sebring has a bright future and an opportunity to offer us a significant upside return through the potential appreciation of the price of SebringSoftware's common stock.

The single focus and the financial resources that Sebring plans to put into Scalix will allow fast ramp-up of the Scalix opportunity, as well as faster and more efficient support of both new customer opportunities and existing customer needs than was possible within Xandros. Conversely, the sale of Scalix allows Xandros to more exclusively focus resources on products that it has developed and is marketing through strategic development alliances with Microsoft (News - Alert) (NASDAQ: MSFT).

This sale also reflects our vote of confidence in the management team at Sebring Software, led by Leif Andersen, who is an experienced executive with a proven track record of success. We look forward to working with Leif and the team at Sebring Software to assure that this acquisition of Scalix Corp. delivers significant value to all Sebring shareholders."

Leif Andersen continued, "Working together with the existing team at Scalix, we have developed an aggressive marketing campaign that will enable us to build on the initial success Scalix has already achieved in the marketplace. With existing technology partners such as IBM (NYSE: IBM), Red Hat (News - Alert) (NYSE: RHT), Microsoft and many others, we are confident that we can execute on our marketing plan. I cannot emphasize enough the tremendous opportunity for Sebring Software and our shareholders that this acquisition represents."

Scalix was initially developed by HP through a significant R&D effort and was deployed into the market as a free email system as HP OpenMail, before it was taken up to be commercialized by venture-backed Scalix Inc. Scalix was subsequently sold to Xandros in 2007 where the product was enhanced through an email technology licensing agreement with Microsoft.

The Scalix e-mail and calendaring platform is used by over 1,300 corporations in more than 65 countries.

In 2010 Scalix had gross revenues of $2,210,210 with income from operations of $441,596 and comprehensive income after currency translation adjustments of $561,360.

About Sebring Software, Inc.

Sebring Software (OTC BB: SMXI) is an emerging collaborative software integration company offering on premises and CLOUD based solutions to a variety of enterprise customers, both directly and through a network of technology partners, distribution partners, and resellers. Sebring Software's business plan is to license and acquire software platforms that reduce IT infrastructure costs and increase enterprise efficiency, productivity, and profitability. For more information visit www.sebringsoft.com

About Xandros, Inc.

Xandros is the leader in providing seamless Windows-Linux interoperability on a variety of platforms. Leveraging its leading role in helping launch the mobile netbook revolution with the award-winning Linux-based Eee PC from ASUS, Xandros expanded its Windows-Linux interoperability focus beyond mobile devices and netbooks into the enterprise applications space through strategic technology alliances and funding from Microsoft. As a result, the Company's BridgeWays subsidiary now delivers cross-platform monitoring applications management packs to provide seamless end-to-end management of business critical applications on Windows, Linux and UNIX environments from one console utilizing the Microsoft System Center platform. The Company's Scalix subsidiary delivers Linux-based on-premises and CLOUD award-winning email, calendaring and messaging products and services. Xandros is headquartered in New York, with R&D offices in Ottawa, Canada; Bracknell, UK; Frankfurt, Germany; and Mumbai, India. For more information, please visit www.xandros.com.

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