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From: "Chad Hill" 
To: 
Subject: linux firms merge; new embedded Net product ready
Date: Sun, 5 Dec 1999 14:01:48 -0800


Acquisition Allows Embedded Linux OS To Power Internet Appliances
Featuring Netscape Navigator

Dallas, TX (December 7, 1999) - One of the first "real-world" commercial
applications of embedded Linux was revealed today when Davis,
California-based ON Channel, Inc., an emerging leader in embedded Linux
development, announced that it had agreed to be acquired by Texas-based
Coollogic, Inc.

Coollogic is an end-to-end solutions provider of Internet Ready?
appliances and software systems, with specific focus on delivering high
volumes of private-branded appliances into large vertical markets.  ON
Channel, Inc. is one of the first companies to ship embedded Linux open
source software solutions targeted towards Internet appliance and
industrial device markets.

The deal, which is a major step forward for the open source movement,
will extend the power and adaptability of embedded Linux into the
Coollogic line of Internet Ready appliances, and will position Coollogic

to capitalize on the explosive growth of open source Linux.  It is
particularly significant to the marketplace because it is one of the
first "real-world" commercial applications of embedded Linux OS.

The ON Channel OS 2000, announced last month, is one of the first Linux
operating systems that has solved the past technical challenges of
reducing the kernel size to meet the memory footprint and functionality
requirements of embedded systems which, in the past, couldn't be applied

to most applications because of memory and cost constraints.   The two
companies expect this combination to have a significant impact on the
embedded Linux market, which to date, has been without a clear
frontrunner.

"Embedded Linux enables the Internet community beyond the PC. It
liberates information appliances from proprietary operating systems and
opens the door for OpenSource/GPL-based applications to run on these
devices.  After all OPEN is the essence of a free society," said Ed
Ghafari, VP Marketing at Coollogic. ". Our goal at Coollogic is to
maintain the ON-Channel brand and aggressively extend OS 2000 to various

OEM's and VAR's across multiple industries."

"Coollogic is beginning to deliver substantial volumes of their Internet

Ready appliances through several vertical private label customers.  This

gives the ON Channel OS the opportunity to be immediately deployed on a
large scale", said Eric Powers, cofounder and chief technologist of ON
Channel. "In addition, the ON Channel OS will be open and available for
third party hardware and software vendors to license and use across a
variety of hardware platforms."

Coollogic will immediately begin equipping all of its Internet Ready
appliances with ON Channel embedded Linux and Web interface
applications.  These appliances, featuring Netscape Navigator, will
begin shipping to several Coollogic vertical market customers by
year-end.

About Coollogic:

Coollogic is an innovator and End-to-End Solutions provider of Internet
ReadyTM appliances and software systems.  Focusing on open architecture
and embedded software systems, Coollogic products provide customized,
simple and affordable Internet and network access for consumers and
businesses.  The company's products are designed specifically for
Original Equipment Manufacturers (OEMs) and Vertical Market Integrators
(VMIs).  The company was founded in 1997 and is headquartered in Dallas,

Texas.  For more information please visit the Coollogic Web site at
www.coollogic.com.


About ON Channel:

ON Channel is a leader in providing embedded real-time Linux operating
systems to OEM and solution providers developing Internet access devices

and industrial embedded solutions. Its OS 2000 software platform offers
an open, inexpensive, stable, highly secure and expandable solution in a

uniquely small memory footprint. The company provides custom interfaces,

application development services, integration and technical support,
which compliments its OS 2000 embedded Linux operating system. ON
Channel, a privately-held company, is headquartered in Davis,
California.

Press Contact for Coollogic:                         Coollogic Contact:

Stacey Gaswirth or Katie Olivier                    Edward Ghafari
Shelton Communications Group                    VP, Marketing
972-239-5119
972-719-2530
sgaswirth@sheltongroup.com                        eghafari@coollogic.com

kolivier@sheltongroup.com

Press Contact for On Channel:                     On Channel Contact:

Chad Hill or Len Fernandes                           Daniel Nilsson
Hill Communications                                     VP, Sales and
Marketing
925-945-7910/510-538-8916                         530-297-7200
hillcomm@earthlink.net
dnilsson@onchannel.com
Cell 510-504-3609