Yamaha Invests in MontaVista Software

FOR IMMEDIATE RELEASE

Yamaha Validates MontaVista Vision for Next-Generation Digital Audio
Products
Leading Global Electronics Company Takes Equity Stake in MontaVista Software

SUNNYVALE, Calif., Nov. 12, 2002  ž« MontaVista Software Inc., the company
powering the embedded revolution, today announced it has received an equity
investment from Yamaha Corporation, the global company that manufactures and
markets a broad range of products including digital musical instruments,
professional audio and recording, and home entertainment systems.

³With the spread of broadband technology, embedded Linux® is proving an
ideal match for digital audio products,² said Masatada Wachi, managing
director and CTO, Yamaha. ³We are impressed by the performance and
reliability of MontaVistaž¡ Linux and are convinced that this popular
development platform can meet the requirements of our market. We expect our
strategic partnership with MontaVista to help further develop the technology
needed to enable the market to tap into newer applications and
opportunities.²

According to a recent market research report from Venture Development
Corporation (VDC), consumer electronics is the fastest growing market
segment for Linux, at an annual growth rate of 49 percent and reaching
$149.6 million in shipments by 2006. VDC also estimated that development in
consumer electronics will be the largest segment of the embedded Linux
market by 2006 with 43.2 percent of total revenue of $346 million.

³We welcome the investment from Yamaha, a leader in the audio, home and
business electronics markets. These markets are currently undergoing a
veritable revolution, moving from stand-alone devices to intelligent,
networked appliances, in which Linux is increasingly the systems software of
choice,² said Jim Ready, CEO and president, MontaVista Software and embedded
industry pioneer. ³Now, OEMs in these markets are demanding the benefits of
Linux; lower development costs, faster time-to-market and a superior level
of functionality for their products.²

The next generation of consumer products requires improved performance,
lower power consumption, flexible and scalable architectures, robustness and
openness. The feature-rich MontaVista Linux Professional Edition addresses
these requirements and is already being deployed for a wide variety of
embedded application designs in consumer electronics.

Yamaha joins a list of high-profile corporate investors, including IBM,
Intel, Sony and Panasonic, who invested in MontaVista Software in its third
round of funding announced earlier this year.

MontaVista Linux

MontaVista Linux Professional Edition 2.1 is one of the most widely used
embedded Linux operating systems and development platforms. It includes an
impressive array of cross-development tools for system and application code,
unparalleled processor and board support, native real-time performance in
Linux, and hundreds of deployable utilities, libraries, drivers, and other
run-time components. Earlier this year, MontaVista Linux Professional
Edition was named ³Best Embedded Linux Solution² at the New York Linux World
and Expo. The product received the ³Electron d¹Or² award for ³Best Embedded
Tool and Development Solution for 2002² from the prestigious French
publication ³Electronique,² and the Readers¹ Choice Award for ³Favorite
Embedded Solution 2002² from the American magazine ³Linux Journal.²

About Yamaha Corporation

Yamaha Corporation, headquartered in Hamamatsu-shi, Shizuoka, Japan, is a
global comprehensive music instruments manufacturer, with 57 bases in 20
countries worldwide. At its core is a comprehensive business related to
³Sound and Music,² including musical instruments such as piano, electronic
instruments and wind instruments; audio/video products for the home theater;
and sound generator semiconductors for mobile phones. In addition, Yamaha
runs a family of resort facilities as a life/leisure business, and owns
affiliate companies including Yamaha Motor Co., Ltd., which manufactures and
sells motorcycles and boats; and Yamaha Livingtec Corporation, which creates
and sells technologically advanced interior furnishings and up of companies
contributes to the enhancement of the quality of life and to the creation of
culture throughout the world.

About MontaVista Software

MontaVista Software is a leading global supplier of systems software for
intelligent connected devices and their associated infrastructure, for
applications ranging from communications infrastructure to consumer
electronics. MontaVista powers the embedded revolution by providing
GNU/Linux based open-source systems software solutions. Founded in 1999 by
real-time operating system (RTOS) pioneer James Ready, MontaVista Software¹s
principal products include MontaVistaž¡ Linux® Professional Edition and
MontaVistaž¡ Linux® Carrier Grade Edition. The Professional Edition comprises
a Linux-based embedded source and binary distribution, cross development
environments, and a versatile set of tools for the x86/IA-32, PowerPC,
StrongARM, MIPS, SH, ARM, XScale, Xtensa and other microprocessor
architectures. The Carrier Grade Edition is a next-generation high
availability product that is the first Commercial Off-The-Shelf Linux (COTS)
platform for telecommunications and carrier-grade applications. MontaVista
Software also provides several complementary technology products addressing
specific customer needs, such as Java development and runtime, powerful
graphics capabilities and more.

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, Panasonic and Sony Corporation. For more
information about MontaVista Software, please visit http://www.mvista.com,
email to info@mvista.com or call (408) 328-9200.

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

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 x340
E-mail: pcolby@pacifico.com