MontaVista Unveils First Consumer Electronics Linux Distribution

FOR IMMEDIATE RELEASE

MontaVista Announces Industry¹s First Embedded Linux Platform Designed for
Consumer Electronics Applications
Specialized Product Boasts Dynamic Power Management, Rich Networking Support
and Consumer-Grade Reliability

International Consumer Electronics Show, Las Vegas, Jan. 8, 2003 ‹
MontaVista Software Inc., the company powering the embedded revolution,
today announced MontaVista Linux® Consumer Electronics Edition 3.0 ‹ the
first quality Linux operating system and cross-development environment
specifically designed for consumer electronics applications such as mobile
phones, digital televisions, set-top boxes and automotive telematics.

³MontaVista Linux Consumer Electronics Edition builds on our expertise in
embedded Linux and our experience in the consumer electronics market,² said
Jim Ready, president and CEO, MontaVista Software. ³The world¹s top four
global consumer electronics companies are MontaVista customers. In addition,
several global consumer electronics companies, including Sony, Panasonic
(Matsushita), Toshiba America and Yamaha have taken equity positions in
MontaVista, which demonstrates a strong validation of our vision for
Linux-powered next-generation digital consumer products.²

MontaVista Software is demonstrating a range of cutting-edge consumer
products built on MontaVista Linux, from the world¹s leading Consumer
Electronics companies in booth # 35179, in the Embedded Technologies
Pavilion at the International Consumer Electronics Show in the Las Vegas
Convention Center.

MontaVista Linux Consumer Electronics Edition (CEE) enhances Linux with
dynamic power management, rich consumer-focused networking support and
consumer-grade reliability. It is designed specifically to address the needs
of consumer electronics device manufacturers. CEE targets consumer
device-specific processors and will initially support the TI OMAP 1510/5910
(and the associated Innovator Development Kit) and the IBM PowerPC 405LP
(and the associated Arctic II Reference Board). Other processing platforms
will be supported in the future. CEE forms the foundation of solution stacks
from software partners in key mobile, home and automotive vertical markets.

CEE is tailored to the demands of highly constrained mobile devices, which
require low power consumption, restricted memory size, and short boot and
resume times. In addition to the complete cross development environment that
MontaVista provides with all of its three Linux Editions, CEE adds new
developer tools for tuning system performance to enable higher quality
end-user experiences.

MontaVista Linux Consumer Electronics Edition, based on MontaVista-licensed
as well as open source software, is application-compatible with and
incorporates all the benefits of the MontaVista flagship systems software
product, MontaVista Linux Professional Edition. CEE includes the fully
preemptible MontaVista Linux kernel and real-time scheduling, small
footprint targets and flash-based journaling file systems.

³MontaVista Software is an important partner and MontaVista Linux has been
contributing to our Linux strategy. The fruits of our relationship with
MontaVista Software can be seen in our products that we are recently
bringing to market such as the Sony CoCoon Channel Server.  We welcome
MontaVista Linux Consumer Electronics Edition as a catalyst and enabler for
next generation digital home electronic devices,² said Masao Hori, deputy
president of Network & Software Technology Center, Sony Corporation.

³The introduction of MontaVista Linux Consumer Electronics Edition validates
both our strategic investment in MontaVista and Matsushita¹s selection of
MontaVista as a partner in building and deploying Linux-based digital
consumer electronics devices,² said Ikuo Minakata, director of Core Software
Development Center, Matsushita Electric Industrial Co., Ltd. (MEI).

MontaVista CEE 3.0 incorporates dynamic power management features, file
system enhancements and new tools to measure performance, system timing and
memory size. CEE also features support for XIP (eXecute In Place) of the
kernel and applications, as well as streaming media optimizations. It
integrates with consumer market middleware such as the J2ME compatible
WebSphere Micro Environment from IBM, and graphics packages such as QT/E
from and MontaVista Graphics. CEE also supports a vast matrix of
best-in-class application packages for consumer markets.
(http://www.mvista.com/news/cee_strat.html)
 
³MontaVista Software has demonstrated its ability to deliver leading edge
technology, stimulate product innovation and work hand-in-hand with its
customers to enable industry-leading products. As the wireless industry
migrates from simple voice-only phones to data-enabled browser phones that
combine communications, mobile Internet access and computing power, we are
relying on MontaVista to help us deliver Linux-based mobile phones to global
markets,² said Seiji Mitsuoka, general manager, Mobile Terminals Software
Development Division, NEC. ³The flexibility of the MontaVista Linux
development platform will allow us to produce innovative mobile phone
products with multi-media capabilities that provide a compelling experience
for mobile users.²

CEE features Linux Support Packages (LSPs) for key reference hardware
platforms, with rich support of integrated peripherals with power management
enabled for all drivers. CEE will eventually implement LSPs for a wide range
of CPU targets being deployed in next generation products.

More than 100 consumer electronics device companies are already using
MontaVista Linux, developing products as varied as cell phones, PDAs,
set-top boxes, Internet radios, residential gateways, automotive telematics
and Karaoke machines. MontaVista Software¹s current consumer electronics
customer list includes Sony, Panasonic (Matsushita), NEC, and Toshiba
America. Companies like Holland-based Zintec Holding and Araneo in Israel
have also chosen MontaVista Linux for their digital television market
products.

³Our customers are increasingly turning to both the Linux operating
environment and power efficient technologies for their applications,² said
Lisa Su, director, PowerPC and emerging products, IBM Microelectronics. "In
satisfying those requirements, we've enjoyed a close working relationship
with MontaVista Software, pairing their Linux offerings with our embedded
PowerPC products. We believe MontaVista Software¹s announcement of
MontaVista Linux Consumer Electronics Edition 3.0 offers additional,
exciting opportunities for our customers.²

³Linux is becoming essential for many mobile and wireless applications
because of its flexibility and ease of use. TI¹s wireless customers will
benefit from the power management, file system and new tools of the newly
launched MontaVista Linux Consumer Electronics Edition, which supports the
industry-leading TI OMAP platform,² said Paul Werp, worldwide director of
marketing for TI¹s OMAP Platform. ³MontaVista Software and Texas Instruments
enable software developers to take advantage of the open and rich
development environment of MontaVista Linux on the high-performance,
power-efficient OMAP platform.²

Availability

MontaVista Linux Consumer Electronics Edition 3.0 will be available from
MontaVista Software and the company¹s sales and distribution channels
worldwide in the first quarter of 2003. It will provide customers with the
MontaVista Linux kernel, software updates, deployment components, utilities,
development tools, access to the MontaVista Zone, comprehensive technical
support and access to hands-on Linux training classes.

About MontaVista Software

MontaVista Software is a leading global supplier of systems software for
intelligent connected devices and associated infrastructure. MontaVista
powers the embedded revolution by providing GNU/Linux-based open-source
software solutions. Founded in 1999 by real-time operating system (RTOS)
pioneer James Ready, MontaVista offers a family of products under the
MontaVista Linux umbrella that address broad-based software developer needs
encompassing applications ranging from communications infrastructure to
consumer electronics. Multiple Editions of MontaVista Linux are available ‹
including Professional, Consumer Electronics and Carrier Grade ‹ along with
complementary technology products providing powerful Java and graphics
development capabilities.

Headquartered in the heart of Silicon Valley, in Sunnyvale, Calif.,
MontaVista Software is a privately held company funded by leading investors
such as Alloy Ventures, US Venture Partners, RRE Ventures, WR Hambrecht +
Co., IBM, Intel Capital, Sony, Panasonic (Matsushita), Toshiba America and
Yamaha Corporation. For more information about MontaVista Software, please
visit http://www.mvista.com.

Linux is a registered trademark of Linus Torvalds. MontaVista is a trademark
of MontaVista Software Inc. All other names mentioned are trademarks,
registered trademarks or service marks of their respective companies.

Contacts:

Joe Samagond
Director of Marketing and Corporate Communications
MontaVista Software Inc.
Phone: (408) 328-9234
E-mail: jsamagond@mvista.com

Patricia Colby
PR Strategy and Business Development
Pacifico Inc. 
Phone: (408) 293 8600 x340
E-mail: pcolby@pacifico.com