MontaVista Doubles Revenues; Completes Record Year with Record Quarter

For Immediate Release

FOR IMMEDIATE RELEASE

MontaVista Doubles Revenues; Completes Record Year with Record Quarter

Company Momentum Highlighted by New Products, Customers, Partners, Funding
and Awards

SUNNYVALE, Calif., TOKYO, PARIS, Feb. 4, 2003 ‹ MontaVista Software, Inc.,
the company powering the embedded revolution, today announced it has ended
its 2002 fiscal year with revenues doubling over 2001, despite the general
economic downturn. In 2002, MontaVista captured more than 450 customer
design wins, almost half of which were with Fortune 100 and Global 500
corporations, including Agilent Technologies UK Ltd., Alcatel, Lucent
Technologies, NEC, Nokia, Matsushita (Panasonic), Philips, Sony and Toshiba
Electronics Europe GmbH. The company reported a record fourth quarter and a
record year.

³Last year, we predicted that Linux would become the platform of choice for
carrier grade applications in telecommunications. We also anticipated the
burgeoning use of embedded Linux in name-brand digital consumer electronics
goods. Today, both of these trends are being realized,² said Jim Ready,
embedded industry pioneer and CEO, MontaVista Software. ³More and more
companies are reaching the conclusion that purchasing MontaVista Linux is
much easier and more cost effective than buying a proprietary RTOS, creating
their own, or trying to use untested Linux off the Web.²

³Our revenue base is grounded in product sales, with product subscriptions
accounting for more than 75 percent of our revenues last year,² added Dave
Warner, CFO, MontaVista Software. ³We are experiencing strong growth and our
investors are thrilled with the company¹s financial progress and future
prospects. In addition, most of our third round funding money is still in
the bank.²

In 2002, MontaVista secured more than $28 million in a third round of
funding from venture capital firms such as US Venture Partners, Alloy
Ventures, RRE Ventures, and WR Hambrecht & Co., and leading technology
companies including IBM, Intel, Panasonic (Matsushita), Sony, Toshiba
America and Yamaha Corporation.

³MontaVista Software is an exceptional company. As the market for commercial
embedded Linux products has surged, MontaVista has continued to ride the
crest of the wave, establishing itself as a leading provider of Linux-based
systems software for several markets,² said Stuart Phillips, general
partner, US Venture Partners. ³In each of these markets, MontaVista has
secured the leading vendors in that market as customers.²

MontaVista Product Line
The company delivered a wealth of new products in 2002, including the
innovative MontaVista� Linux® Carrier Grade Edition 2.1 for the
telecommunications market, and MontaVista Linux Professional Editions 2.1
and 3.0. The company¹s graphics product updates included MontaVista Graphics
2.1 and Qt/Embedded for MontaVista Linux 2.3.3. Rounding out its product
portfolio, MontaVista also updated its Java development tools - VisualAge
Micro Edition (VAME 1.4) for MontaVista Linux was released last year.

It also laid the groundwork for the successful launch of its first product
for the consumer electronics market ‹ MontaVista Linux Consumer Electronics
Edition 3.0 ‹ in January of 2003. Consumer electronics products based on
MontaVista Linux are already shipping from Sony, NEC and Panasonic.

Industry Recognition
In 2002, MontaVista Software was chosen as one of the ³Communication Systems
Design² magazine¹s 20 up-and-coming communications companies and was honored
with the magazine¹s ³COMET² award. MontaVista was also named as one of
³Upside² magazine¹s ³Hot 100² companies and ³Electronic Business² magazine
picked MontaVista as one of its ³Thirty Best Small Electronics Companies for
2002.²

The company¹s flagship product, MontaVista Linux Professional Edition, was
named ³Best Embedded Linux Solution² at the Linux World and Expo in New
York; it was also recognized as ³Best Embedded Tool and Development Solution
for 2002² by the prestigious French publication ³Electronique;² and received
the ³Readers¹ Choice Award² for ³Favorite Embedded Solution 2002² from the
American magazine ³Linux Journal. ²

Growing Global Presence
The company continued to expand its worldwide sales and distribution network
with the appointment of a new vice president of European operations and new
distribution channels in China, India, Korea, Japan and Taiwan.

Vibrant Partner Ecosystem
MontaVista Software¹s strong partner ecosystem topped 200 members; welcoming
new alliances and solidifying strategic relationships with semiconductor
vendors including IBM, Intel, Broadcom, Toshiba America, Altera, Xilinx,
Texas Instruments, Agere, IDT, and Interphase, and with software suppliers
such as InterVideo, Access, Omron Software, Tao Group, IP Infusion, LVL7,
Hughes Software Systems, Parasoft and Zentek Technology.

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
trademarkof MontaVista Software Inc. Java and all Java-based marks are
trademarks or registered trademarks of Sun Microsystems, Inc. All other
names mentioned are trademarks, registered trademarks or service marks of
their respective
companies.

Contacts:

MontaVista Software
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