Embedded systems and Linux expertise expands LynuxWorks' end-to-end solutions for embedded computing devices

SAN JOSÉ, Calif., July 31, 2000—LynuxWorks, Inc., (formerly Lynx Real-Time Systems), a leader in embedded Linux and a pioneer in the open-standards real-time operating system (RTOS) industry, today announced a definitive merger agreement with Integrated Software & Devices Corporation (ISDCorp), a leading supplier of system software, intellectual property and software services for the embedded computing market.

Under the terms of the agreement, LynuxWorks will acquire ISDCorp through a stock swap transaction whereby newly issued LynuxWorks shares will be swapped for all outstanding ISDCorp shares. The closing of the merger agreement is subject to customary conditions including, shareholder approvals.

The merger of ISDCorp is expected to increase LynuxWorks' ability to offer a broader range of scalable, high-performance and high-availability embedded Linux solutions to the marketplace. It significantly increases the size and scope of the LynuxWorks' professional services organization, thereby enabling them to better support the needs of customers who choose to develop Linux-based products. In addition, LynuxWorks will now have Linux support for a wider variety of target processors including ARM and MIPS.

ISDCorp was founded in 1991 and has over nine years of experience supporting leading electronic OEMs with operating system ports and device drivers for their embedded systems.

As a result of the merger, Reza Soliman-Noori, chairman and CEO of ISDCorp, will serve as president of ISDCorp and vice-chairman of the combined companies, Dr. William Hogan will continue to serve as president of LynuxWorks, and Art Swift of ISDCorp will assume the position of chief operating officer for LynuxWorks. All will report directly to Dr. Inder Singh, CEO and chairman of LynuxWorks, Inc.

About LynuxWorks

LynuxWorks, Inc., formerly Lynx Real-Time Systems, is a developer and supplier of Linux and real-time operating system software for reliable and high-performance embedded computing applications. LynuxWorks supports industry standards in communications, avionics, automotive, office automation and process control systems worldwide, enabling customers to leverage their investments in software and education. LynuxWorks products include the open-source BlueCat Linux and the scalable, Linux- compatible LynxOS® real-time operating system; software frameworks for high-availability systems; development tools and technical support worldwide.

About ISDCorp

Integrated Software & Devices Corporation (ISDCorp) is a leading supplier of system software, intellectual property and software services for the embedded computing market. The company specializes in microprocessor-specific operating system ports, software device drivers and embedded system integration. Headquartered in San José, ISDCorp has brought new technologies to market since 1991.

Safe harbor

Except for the historical information and discussions contained herein, statements included in this release may constitute "forward-looking statements". These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those that may be projected by these forward looking statements. These risks and uncertainties include, but are not limited to, risks relating to the consummation of the contemplated transaction, including the risk that required regulatory clearances or shareholder approval might not be obtained in a timely manner or at all. In addition, statements in this release relating to the expected benefits of the contemplated transaction are subject to risks relating to the timing and successful completion of technology and product development through production readiness, integration of the technologies and businesses of LynuxWorks and ISDCorp, unanticipated expenditures, changing relationships with customer, suppliers and strategic partners. Neither company undertakes an obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

LynuxWorks and BlueCat are trademarks and LynxOS and Lynx Real-Time Systems are registered trademarks of LynuxWorks, Inc. Other brand or product names are registered trademarks or trademarks of the respective holders.

LynuxWorks press contacts

Kirsten Long Director, Marketing Communications LynuxWorks, Inc. USA +1 408-979-4404	Dave Reddy Weber Shandwick USA +1 650-868-4659	Peter van der Sluijs Neesham Public Relations Europe +44 1442-879222
Hamid Mirab Managing Director EMEA LynuxWorks Ltd. United Kingdom +44 208-906-9506	Elvia Soltero Weber Shandwick USA +1 408-685-0614