From:	 Annette Oevermann <aoevermann@pacifico.com>
To:	 <lwn@lwn.net>
Subject: MontaVista Caps Blockbuster Year
Date:	 Tue, 22 Jan 2002 10:11:02 -0800

MontaVista today announced that it has ended the fiscal year 2001 with
stellar results.

Revenues rose 250 percent over 2000, the company captured more than 250
customer design wins and subscribers of MontaVista's Linux product renewed
their subscription at a rate of more than 115 percent.

For more details, see the release included below.

Annette Oevermann
Pacifico, Inc.
(408) 293 8600 x341

MontaVista Software Caps Blockbuster Year
Leading Embedded Software Company Gains Customers, Revenues, Funding and
Partners

SUNNYVALE, Calif., Jan. 22, 2002 ‹ MontaVista Software, Inc., the company
powering the embedded revolution, today announced that it has ended its 2001
fiscal year with revenues growing 250 percent over 2000, despite the
economic downturn. In 2001, MontaVista captured more than 250 customer
design wins, more than 50 percent of which were with Fortune 100 and Global
500 corporations. In addition, the company reports that during the past
year, its larger customers renewed their annual product subscriptions at
rates exceeding 115 percent of their original purchase.

³MontaVista has demonstrated that its product subscription-based business
model is valid and successful even as other embedded software companies,
especially in the Linux space, continue to struggle," said Jim Ready, CEO of
MontaVista Software. "The embedded Linux market is growing at a rapid pace.
We expect to see Linux becoming the platform of choice for carrier-grade
applications in telecommunications. We also predict the burgeoning use of
Linux in name-brand digital consumer electronics. In 2002, MontaVista will
leverage this growth and be recognized as the #1 embedded Linux company.²

MontaVista has also secured approximately $28 million in a third round of
funding from venture capital firms like US Venture Partners, Alloy Ventures,
RRE Ventures, and WR Hambrecht & Co., and leading technology firms such as
IBM, Intel and Sony Corporation.

During 2001, MontaVista established new alliances and expanded strategic
relationships with semiconductor vendors including Toshiba, Hitachi, IBM,
Intel, ARM, MIPS, Alchemy Semiconductor and Tensilica, and with embedded
software suppliers such as Trolltech and IBM. In addition, the company added
several Global 500 corporations to its list of customers, including Ericsson
and Nokia.

³MontaVista continues to attract serious interest from major technology
companies throughout the world,² said Trent Winegar, MontaVista¹s vice
president of worldwide sales. ³Customer demand remains strong and we expect
to do even better in 2002.²

Furthering its commitment to a growing customer base, MontaVista
significantly grew its sales and marketing force in 2001, opening new
offices in Sweden, the Netherlands, Singapore and Hong Kong, and appointing
four new vice presidents of marketing, worldwide sales, EMEA sales and Asia
Pacific sales.

³Last year, we implemented a small layoff, in a prudent step to conserve
cash in a difficult funding environment,² said Dave Warner, MontaVista CFO.
³MontaVista is once again ramping up and the company continues to expand in
sales, business development, customer support and marketing.²

In April 2001, the company introduced version 2.0 of its flagship product,
Hard Hat® Linux®, becoming the first company to market a product fully based
on the newly released Linux 2.4 kernel. In keeping with MontaVista tradition
and practice, the product was released on a single common source base across
all leading target CPU architectures.

The company also provides a powerful Java development environment --
VisualAge® Micro Edition for MontaVista Linux. The MontaVista High
Availability Framework, an open architecture platform, is targeted at
telecom equipment manufacturers building fault-resilient systems based on
CompactPCI and other industry standards. Customers also benefit from
powerful graphics toolkits like MontaVista Graphics, a high-end open source
graphics environment, and Qt/Embedded, an industry-leading graphics toolkit.
In 2001, MontaVista's real-time preemptible kernel solution won a Linux
Journal Editor's Choice Award.

³Because of our success, the MontaVista name is now well known among
customers, partners and investors throughout the world,² said Sheila Baker,
MontaVista¹s vice president of marketing. ³Going forward, we have decided to
consolidate our marketing efforts around that single brand.²

The next generation of the company¹s flagship product, to be announced next
week, will be called MontaVista Linux, instead of Hard Hat Linux. All other
future products will also be renamed to reflect the MontaVista brand.

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