ALT Linux Team arose from the merger of IPLabs Linux Team and the Linux community of the Institute of Logic, Cognitive Science and Development of Personality. The latter cooperated with Mandrake Linux and SUSE Linux teams to improve localization (specifically Cyrillic script), producing a Linux-Mandrake Russian Edition (RE).
Mandrake and Mandrake RE became different distributions and thus the decision was made to create a separate project. The name ALT was coined, which is a recursive acronym meaning ALT Linux Team.
The split led to the creation of the Sisyphus package repository, which is an unstable branch of the ALT Linux development. In 2007, the Sisyphus repository won a prestigious CNews award in nomination for Information Security.