Linux-based Panasonic IP Phone Unwrapped at CES

FOR IMMEDIATE RELEASE

MontaVista Software Powers New Panasonic Broadband Terminal
Leading Linux Platform Chosen for Performance and Networking Capabilities

International Consumer Electronics Show, Las Vegas, Jan. 8, 2003 ‹
MontaVista Software, Inc., the company powering the embedded revolution,
today announced the selection of MontaVista Linux® as the systems software
platform for a new broadband terminal developed and manufactured by
Panasonic Communications, Inc. and targeted for business organizations
including telecommunication carriers, power or gas supply companies, and
condominium and public facility management companies.

The new broadband web terminal is a next-generation, integrated,
multi-functional IP phone and Internet terminal that includes a wide
liquid-crystal-display, Internet connectivity with touch screen operation,
and handwriting input for email messages -- all of which provides
easy-to-use operation for end users. The broadband terminal also
incorporates touch screen operation of phone functions such as message
answering, number display, and ring melody selection.

 This product will be incorporated into next-generation Internet-connected
home and business devices developed by consumer electronics OEMs. The
Panasonic platform, running MontaVista Linux, will enable a variety of
applications including remote medical care, home banking and online
shopping. The broadband terminal can also be integrated into order
processing terminals for franchised or large retail businesses.

³This Panasonic broadband terminal represents the next generation of
Internet-connected home and business devices. We are delighted that
MontaVista Linux was chosen as the systems software platform to enable the
development of such an advanced consumer device,² said Hitoshi Arima, vice
president, sales (Japan), MontaVista Software. ³MontaVista Linux offered
Panasonic both quicker time-to-market and lower total development costs.
MontaVista Software has been and will continue to address the growing
requirements of the consumer electronics market.²

MontaVista Linux supports a range of enhanced features in advanced consumer
electronics products such as the Panasonic broadband terminal, providing
high performance, real-time capability and service reliability. The
feature-rich MontaVista Linux is already being deployed in a wide variety of
consumer electronics applications, such as smart mobile phones, wireless
PDAs, set-top boxes and automotive telematics.

About MontaVista Software Inc.

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 ext. 340
E-mail: pcolby@pacifico.com