Dear ,

Lineo, the leading innovator in embedded systems, real-time and high availabili
ty solutions, announced a signed letter of intent to acquire the Linux
DTV provider Convergence Integrated Media. Lineo also announced a partnership
with VMIC to provide high availability clustering on CompactPCI systems.

Individual Meetings with Lineo
If you would be interested in setting up an interview please contact me.
Otherwise, an audio webcast of the Convergence press conference is available
on Lineo's website in conjunction with a slide show outlining the news.
Please visit www.lineo.com/lw/slide.html for more information.

Regards,

Rhett Glauser
Lineo Public Relations
801.426.5001 ext. 351
rhett@lineo.com

FOR IMMEDIATE RELEASE


LINEO SIGNS LETTER OF INTENT TO ACQUIRE 
CONVERGENCE INTEGRATED MEDIA GMBH

Combined Product Offering Creates Most Complete Technology 
Offering for Linux Digital Television 

LINDON, Utah - March 6, 2001 - Lineoä, Inc. a leading innovator in embedded
systems, real-time and high availability solutions, today announced it
has obtained a signed letter of intent to acquire Convergence Integrated
Media. Convergence is the leading developer of operating systems and software
for digital communications products, such as personal video recorders
(PVR) and digital versatile disk (DVD) devices. With this acquisition,
Lineo is enhancing its position as the first and only provider of Linux-based
development tools for digital television products. Terms of the deal are
not being disclosed.

This merger will provide a comprehensive DTV development and deployment
resource for embedded designers who provide interactive end products for
the home and for digital media content. Lineo and Convergence will provide
a vertical solution of tools and applications for the developer that includes
operating system ports, drivers, consumer applications, development kits
and training.

Convergence Integrated Media is the innovator of DTV and digital video
broadcast (DVB) technology in the European market. Lineo's worldwide sales
channels, strategic partnerships and advanced Linux-based embedded system
technologies will extend the reach of DTV and DVB technology around the
world while promoting established and innovative digital media standards.

"We are announcing our intentions to be the first and only mover in the
embedded Linux digital television market and now have the greatest depth
of DTV experience and resources," said Bryan Sparks, Lineo CEO. "Convergence
brings incredible capabilities to interactive digital television. Coupled
with Lineo's extensive developer tools and embedded software expertise,
the Convergence technology set will revolutionize the way people interact
with their home electronic environment by providing OEMs an end-to-end
solution for creating DTV products."

Bernd Curanz, CEO of Convergence Integrated Media, added, "Our goal has
been to make the capabilities and benefits of DTV widely available. The
coupling of this technology and resources is a major step forward to enabling
OEMs to deliver highly interactive home communication systems."

The digital media operating system components provided by the Lineo /
Convergence merger will be open source while allowing proprietary applications
to run on the DTV solution without compromising intellectual property.
OEMs will use these combined solutions in multimedia enabled digital devices
including televisions, set-top and cable boxes and high-speed home internet
access devices.

According to Allied Business Intelligence, a worldwide conversion from
traditional analog broadcasts to digitally-encoded transmissions is powering
the digital set-top box market to become a $21 billion market by 2005.
The global installed base of digital set-top boxes will increase from
44 million in 1999 to 339 million boxes by 2005. The key catalyst for
growth will be the use of digital set-top boxes by both satellite and
cable operators.

About Convergence Integrated Media
Convergence Integrated Media, headquartered in Berlin, develops software
and applications for digital television based on open source software
and standards, such as the Linux operating system, providing optimal performanc
e for play-out servers and digital television sets. Convergence provides
a variety of tailor-made digital television solutions for numerous architecture
s, including Intel, PowerPC, MIPS and ARM using embedded Linux. Convergence
implements the Multimedia Home Platform (MHP) interactive DTV standard
technology and also offers a Linux TV server for digital content streaming.
For more information about Convergence, please visit www.convergence.de
and www.linuxtv.org

About Lineo, Inc.
Lineo, Inc. provides embedded systems, real time and high availability
solutions that include software, hardware reference designs and professional
services. Lineo's solutions allow OEMs to create devices and systems that
interact with the Internet while helping OEMs to reduce system requirements,
per-unit costs and time-to-market. The company's key product lines include:
Embedix™ (embedded Linux system software), uClinux™ (embedded Linux for
MMU-less processors), SecureEdge™ (Linux-based Internet appliances for
secure networking), RTXC™ (general purpose and DSP real-time operating
system), BeaconSuite™ (x86 development toolkit) and Availix™ (mission-critical
high availability Linux cluster solutions). Contact Lineo at www.lineo.com,
via e-mail to info@lineo.com or by calling (801) 426-5001.

###

Lineo and Embedix, Availix, SecureEdge and uClinux 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:
Rhett Glauser				Bernd Curanz
Lineo, Inc.				Convergence Integrated Media GmbH
Tel: 801.426.5001 ext. 351			Tel: 0049.30.726206.50
rhett@lineo.com			curanz@convergence.de

FOR IMMEDIATE RELEASE

LINEO AND