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GraphOn Corporation, a Campbell, Calif.-based provider of thin client X server software announced today they have signed a letter of intent to merge with Paris, France-based Prologue Software, specialists in multi-user application server technology. The merger will allow GraphOn and Prologue to combine their respective thin client, adaptive protocol, low bandwidth and multi-user technologies and worldwide distribution strengths. As a result of this agreement, GraphOn will become a wholly owned, autonomous subsidiary of Prologue and will continue to be headed by Walt Keller, President of GraphOn. Keller will also join the Prologue board of directors. Terms of the exchange were not disclosed.

"We are excited about bringing together GraphOn's extensive thin client and UNIX technology with Prologue's multi-user NT expertise," said Keller. He was quick to point out the strategic importance of the merger. "Prologue is the only company, along with Citrix, authorized by Microsoft to pioneer multi-user NT solutions," explained Keller, referring to Prologue's 1993 deal with Microsoft to create a multi-user Windows application server, WINTIMES. "Microsoft highly values Prologue's expertise. They licensed the WINTIMES multi-user technology and are currently working with Prologue engineers in Redmond to develop Hydra, the next version of Microsoft Windows NT with multi-user capability."

Georges Seban, President of Prologue, said, "the synergy of GraphOn and Prologue capitalizes on both companies' strengths to create the next generation of mission critical multi-user solutions. In addition, the relationship with GraphOn will benefit the 600,000 Prologue users who are eager to take advantage of GraphOn's advanced technology to migrate their legacy applications to the new thin client paradigm."

GraphOn is a powerful thin client and adaptive protocol technology provider with strong relations in the UNIX market. GraphOn's relationship with Sun Microsystems is the first of a number of licensing agreements to be announced in the near future. Sun Microsystems integrates GraphOn's GO-Joe™ thin client Java X server with every JavaStation and Solaris operating system. GO-Joe provides UNIX/X application access from all Java-enabled desktops, such as Sun Microsystems' JavaStation or Java-enabled browsers such as Microsoft Explorer and Netscape Navigator. GraphOn's other products include GO-Global, the first thin client PC X server, which provides MS Windows users with a high performance UNIX/X solution, over LANs, as well as over low-bandwidth connections, such as remote dial-ups.

About Prologue Software

Prologue Software's 20-year legacy as an innovator in multi-user operating systems and portable development environments has enabled it to maintain a leadership position in the connectivity arena. As early as 1980, Prologue broke through the limits of single-station data processing with an essential concept: running several applications simultaneously on the same microcomputer and sharing information between multiple users. The company will continue to pursue important alliances with recognized technology partners whose skills complement those of Prologue Software to continue to build its presence in the multi-user and Internet markets.

About GraphOn Corporation

GraphOn, founded in 1982, develops powerful software to speed and simplify network computing and enable efficient thin client applications. GraphOn designed and manufactured the first "thin" X terminal and has since evolved into a purely software company. Its products include GO-Global, the world's first thin client X server for PCs running Microsoft Windows, and GO-Joe, the world's first thin client Java X server. GraphOn has strategic relationships with major UNIX(R) system vendors, network computer and terminal vendors, system integrators, and software companies. GraphOn's customers are primarily Fortune 1000 corporations. GraphOn currently distributes its products through value added resellers worldwide. The agreement with Prologue will expand the company's offering of products and services.