From:	 Annette Oevermann <aoevermann@pacifico.com>
To:	 <lwn@lwn.net>
Subject: MontaVista Secures $28 M in Funding
Date:	 Tue, 22 Jan 2002 09:49:12 -0800

MontaVista Software Secures $28 Million in Financing From Industry Leaders
Oversubscribed Third Round Caps Blockbuster Year

SUNNYVALE, Calif., Jan. 22, 2002 ‹ MontaVista Software, Inc., the company
powering the embedded revolution, today announced it has secured
approximately $28 million in its third round of funding. New investors
include IBM and Sony Corporation. Previous investors, US Venture Partners,
Alloy Ventures, Intel Capital, RRE Ventures and WR Hambrecht & Co., also
contributed to this funding round. The total investment in MontaVista
Software, since it was formed in 1999, is now more than $60 million.

³MontaVista revenues increased 250 percent over the past year. We achieved
more than 250 customer design wins, of which more than 50 percent are with
Fortune 100 and Global 500 corporations,² said Jim Ready, MontaVista
Software CEO. ³The ability to secure additional funding in a tight market
highlights MontaVista¹s two-year record of impressive growth and sustained
momentum. We are thrilled that this round of funding includes a number of
top-tier venture capital firms and leading technology companies across key
industry segments.²

A recent Evans Data report forecast that the market for embedded Linux will
grow by more than 140 percent over the next year, to jump past embedded
software market leader Wind River. Another recent report from analyst group
Venture Development Corporation (VDC) predicts that worldwide shipments of
embedded Linux operating systems, software development tools and related
services will increase from $28.2 million in 2000 to an estimated $306.6
million in 2005, a compound annual growth rate of 61 percent.

³The market for commercial embedded Linux products is growing at a
tremendous rate, despite the downturn in the economy,² said Stuart Phillips,
general partner, US Venture Partners. ³MontaVista Software has the
management team and execution focus to be the leader in embedded Linux
products.²

³IBM has openly expressed corporate support for Linux, as part of its
company-wide strategy,² said Armando Garcia, vice president of Network
Processors, IBM Microelectronics. ³It makes sense for us to expand the
already excellent working relationship between the two companies, by also
investing in MontaVista Software, one of the industry¹s leading embedded
software companies.²

³Through the Intel Communications Fund, Intel Capital invests in companies
like MontaVista Software that develop communications and wireless building
blocks, ² said Sam Arditi, vice president of Intel Corporation's Wireless
Communications and Computing Group and director of Cellular Handheld
Computing. ³Our goal, through these investments, is to continue to enable
Linux support for products based on the Intel® XScale� micro architecture.²

³After first becoming popular with individual programmers and then making
inroads on commercial servers, Linux is now proving its merits in the
embedded domain,² said Masao Hori, deputy president, Network and Software
Technology Center, Sony Corporation. ³Based on the reliability and
performance of MontaVista¹s product, and the company¹s close ties to the
Linux community, we are confident Linux will become one of the leading
embedded operating systems and that MontaVista Software will increasingly be
an important player in the market.²

MontaVista will use this additional round of financing to help fuel its
engineering, support, marketing and sales capabilities. Specifically, it
will continue to enhance the MontaVista Linux family of products to take
advantage of significant new market opportunities for embedded Linux.

About MontaVista Software, Inc.
MontaVista Software, Inc. powers the embedded revolution by providing
open-source systems software solutions for embedded developers. Founded in
1999 by real-time operating system (RTOS) pioneer James Ready, MontaVista's
principal products include MontaVista® Linux®, a Linux-based embedded source
and binary distribution, cross development platform and a set of tool kits
for x86/IA-32, PowerPC, StrongARM, MIPS, SH, ARM, XScale and other
microprocessor architectures. MontaVista offers developers a family of
products and services for embedded design and development targeted for
applications ranging from communications infrastructure to consumer devices.
MontaVista Software also provides several technology add-on products
addressing specific customer needs such as the Java development environment,
High Availability technology, powerful graphics toolkits and more.

Headquartered in the heart of Silicon Valley in Sunnyvale, Calif.,
MontaVista Software is a privately held company funded by leading investors
such Alloy Ventures, US Venture Partners, RRE Ventures, WR Hambrecht + Co.,
IBM, Intel Capital and Sony Corporation. For more information about
MontaVista Software, please visit http://www.mvista.com or email
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:

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 ext. 340
E-mail: pcolby@pacifico.com