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SCMP Reporter

Microsoft, battling to win industry respect for its Trustworthy Computing initiative, is to buy the anti-virus business of Romanian software developer GeCAD Software.

The purchase could enhance the security of Longhorn, Microsoft's next version of Windows, but GeCAD partners said the deal would eliminate a highly regarded Linux-based anti-virus product.

Microsoft will pay US$10 million for GeCAD's Reliable Antivirus software, known as RAV, Romanian newspapers reported. Both Microsoft and GeCAD have refused to comment on the price.

Microsoft had not decided whether the software would be used in a standalone product, said Mike Nash, vice-president of Microsoft's security business unit.

'Customers told us they needed a safer, more trustworthy computing experience to help combat the threats posed by those who write viruses and malicious code,' said Mr Nash.

'This acquisition will help us and our partner anti-virus providers further mitigate risks.'

Microsoft software has proved highly attractive to virus writers. It reported more than 70 security bugs in its software last year.

All of the current 20 most common viruses reported by Symantec were written specifically to target vulnerabilities in Microsoft software.

Microsoft is in the second year of the Trustworthy Computing initiative, which Bill Gates launched to overcome such flaws.

Meanwhile, anti-virus companies have been moving into new areas such as network and security appliances, spam filtering and enterprise services.

Trend Micro chief executive Steve Chang said on Friday that he welcomed the announcement.

'Trend Micro's vision is to create a world safe for exchanging digital information, and this move by Microsoft will help to accelerate Trend Micro's goal,' he said.

Microsoft, Trend Micro and Network Associates last month formed the Virus Information Alliance (VIA).

In January, Microsoft bought Washington-based anti-virus firm Pelican Security.

GeCad president Radu Georgescu said that under the deal with Microsoft GeCad would stop developing anti-virus software.

'We will from now on focus on development of other basic security technologies.'

GeCAD has distributors in more than 60 countries. Its sales last year amounted to US$3 million, while its net income came to about US$700,000. Most of its sales have been in enterprise solutions based on the Linux operating system.

Some GeCAD staff would move to the United States to help Microsoft merge the code, Mr Georgescu said.

'Microsoft chose RAV because it has one of the highest detection rates of computer viruses in the world,' said Microsoft Romania head Silviu Hotaran.

GeCAD's 'independent platform', which enabled RAV to run on different operating systems, was also a plus, he said.

However, some GeCAD partners said RAV's independence was its downfall.

Michael Katz, president of RAE Internet, GeCAD's sole US distributor, said he could not understand why Microsoft had bought the product.

'The decision by a few individuals at GeCAD puts RAV customers, partners and probably most employees in a bad situation,' he wrote in a letter to customers.

'As much as this situation stinks for our customers, it is not time to panic and jump ship. RAV updates are coming for at least a year until sales discontinue.'



Microsoft deal kills off Linux anti-virus code