The Santa Cruz Operation Inc has begun shipments of the Xenix 386 System V operating system and Xenix 386 System V development system for 80386-based AT-alikes: the company claims that the 32-bit native-mode code used in the operating system and generated by the development system is extremely compact and optimised as a result of use of the Microsoft C 5.0 compiler so that some large 286 programs run more than 100% faster simply by recompiling, and adding the performance of the 386 processor can yield as much as a 600% improvement over the same application running on an 80286; it comes packaged with CGI graphics based on GSS*CGI, operating and development system are $695 each, and complete Xenix 386 system, which bundles text processing with the other two items, is $1,495.