Press Release: March 30, 2000

WR Hambrecht + Co Initiates Coverage of VA Linux Systems, Inc. (LNUX) with a Buy Rating

Company positioned to quadruple revenues in fiscal 2000

San Francisco, CA, March 30, 2000—WR Hambrecht + Co today initiated research coverage on VA Linux Systems, Inc. (LNUX) with a buy rating. WR Hambrecht + Co.’s Open Source analyst Keith Bachman cited VA Linux’s ability to offer a complete Linux solution set, information appliances and strong brand identity in both Linux and Open Source fields as key reasons for the rating. WR Hambrecht + Co offers all its research reports free and real-time at www.wrhambrecht.com.

"We believe that an investment in VA Linux is an investment in one of the strongest competitors in Open Source. VA Linux is involved in virtually all parts of the Open Source market including systems, services, portals and software, and we believe it has opportunities to enhance its position in each of these markets," Bachman said.

Bachman projects VA Linux’s total revenues will reach $88.2 million in 2000 and $163 million in 2001, up from the 1999 total of $17.7 million.

VA Linux is a leader in the Open Source and Linux markets, providing complete solutions including systems, software, services and information (portal).