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While seemingly incompatible, combining global software development and agile practices is a challenge undertaken by many companies. Case study reports on the successful use of agile practices in small distributed projects already exist. How these practices can be applied to larger projects, however, remains unstudied. This paper reports a case study on agile practices in a 40-person development organization distributed between Norway and Malaysia. Based on seven interviews in the development organization, we describe how scrum practices were successfully applied, e.g. using teleconferencing and web cameras for daily scrum meetings, synchronized 4-week sprints, weekly scrum-of-scrums, and Jira for backlog management. Non-scrum agile practices included nightly builds, automated testing, and team rooms. Supportig global software development practices, e.g. frequent visits, unofficial distributed meetings, domain expert networks, and annual gatherings are described. Positive experiences of using scrum included improved communication, trust and motivation, as well as better perceived quality. Challenges included misunderstood requirements, lack of videoconferencing possibilities, and awkward communication in distributed meetings due to cultural and geographical distance. Copyright © 2008 John Wiley & Sons, Ltd.