Due to the problems with the main server which worked only infrequently, hardly anyone learned about the existence of Kate 1.0.

Kate Linux 2.0 Zyklon (series II) Version 2.0 was published on 2005-04-09, and was no longer based on Slackware.

It had a more distinctive graphical design, used the squashfs technology (2 GB of data packed on just one CD) and unionfs.

The packaging system was completely rewritten resulting in the PKG and Updates2 tools, and the libupdateos and libsmarttools libraries.

The functionality of the TGZex packages was widened, this time to include dependency tracking and descriptions in many languages.

[citation needed] The system used udev, D-Bus and HAL to detect hardware and mount devices automatically.

[citation needed] The CD contained 2GB of data, including the Xfce desktop environment and many office and multimedia applications.

It also included Update-notifier, a daemon for which the system trace icon changed and blinked when new updates were discovered.

[citation needed] It was designed to allow users to easily install, update, and remove packages from the system.

This version brought several new and updated features to KateOS such as software driven suspend mode and the addition of several new programs such as KateLAN and Realm to help make configuring the system more user friendly.