From: Jennifer Finlinson <jennifer@lineo.com>
Subject: Lineo to Acquire Moreton Bay
Date: Mon, 20 Mar 2000 10:25:00
To: corbet@eklektix.com

FOR IMMEDIATE RELEASE




LINEO TO ACQUIRE MORETON BAY VENTURES 

Acquisition Provides Embedded Linux VPNs and ColdFire Platform Support

LINDON, UTAH - March 20, 2000 - Lineo, Inc., the leading developer of
embedded Linux system software, today announced that Moreton Bay
Ventures, based in Brisbane, Australia has agreed to be acquired by
Lineo. Moreton Bay is a leading developer of embedded VPN solutions for
Internet appliances and also specializes in engineering development for the
Motorola ColdFire chip platform.

"By adding the embedded Linux VPN solutions developed by Moreton Bay to the
Embedix product family, Lineo provides OEM developers the additional
Internet connectivity they need for Internet appliances and embedded
devices," said Bryan Sparks, CEO of Lineo, Inc. "Their engineering
expertise with the ColdFire chip will enhance our product support for this
and other popular platforms."

The technical team at Moreton Bay offers a range of product, design and
support services to actively promote and support solutions based on the
ColdFire + Linux platform.  

"Our products and technologies are very complementary and we share very
similar business and operating models," said Bob Waldie, CEO of Moreton
Bay. "We see a very rapid and straightforward integration between the two
companies and significant ongoing leverage as we provide new and expanded
solutions to a robust embedded Linux technology set."

Moreton Bay is the fourth company that Lineo is purchasing. In February,
Lineo announced their intent to acquire Zentropix and Rt-Control, providing
the Lineo Embedix product family with hard real-time solutions and the
ability to embed Linux in small microcontrollers. Earlier this month, Lineo
announced their intent to acquire USE, a custom engineering firm based in
Japan with expertise in a number of hardware platforms and operating
systems.

With 15 employees, Moreton Bay is based in Brisbane, Australia, and has a
satellite sales and service office in San Jose. These offices will remain
in place and augment the existing Lineo Sales, Engineering and Professional
Services organizations. With the addition of the office in Australia, Lineo
now has sales, services and engineering offices in Utah, Washington,
Virginia, California, Toronto, Taiwan, the UK, Japan and Australia.

About Lineo, Inc.
Lineo, Inc., the leading developer of embedded Linux system software,
develops, markets and sells embedded Linux system software and applications
that provide OEMs and consumers with simple, low-cost software for interacting
with the Internet via embedded devices. Lineo owns the Embedix product
family including Embedix Linux, Embedix SDK and Embedix Browser. Visit
Lineo, Inc. at www.lineo.com. For more information, contact Lineo, Inc.
via e-mail: info@lineo.com or telephone: (801) 426-5001.

About Moreton Bay Ventures
Moreton Bay offers a range of embedded Linux platforms, technologies and
services that enable its OEM partners to develop custom Internet appliances.
Moreton Bay owns the NETtel appliance family which provides rapid development
tools for edge network devices that interconnect LANs to the net. NETtel
was selected as finalist for the Best Hardware at Linux Expo/Comdex Fall
(Nov 99) and for the Most Innovative Linux Product at Linux Open Source
Expo (March 00). The company also develops innovative communications technologi
es that ensure embedded Linux devices can securely and simply interconnect
over the Internet. Moreton Bay has been established for four years and
has offices in both US and Australia. For further information drop by
Moreton Bay at www.moretonbay.com or contact sales@moretonbay.com

###

Lineo and Embedix are trademarks of Lineo, Inc. Linux is a registered
trademark owned by Linus Torvalds. All other products, services, companies
and publications are trademarks or registered trademarks of their respective
owners.

Press Only Contact:
Jennifer Finlinson
Public Relations Manager
jennifer@lineo.com
Tel: 801-426-5001x264