LynuxWorks, Inc. Announces Filing of Registration Statement for Initial Public Offering

Company develops and supplies Linux and real-time operating systems for the embedded systems market

SAN JOSÉ, CA—October 25, 2000—LynuxWorks™, Inc., a provider of Linux-compatible operating systems and related products and services designed for the embedded systems market, today announced that it has filed with the Securities and Exchange Commission a registration statement relating to the proposed initial public offering of its common stock. All of the shares will be sold by LynuxWorks.

LynuxWorks' solutions provide customers with the capabilities of both a real-time operating system and an open source Linux operating system through its two principal products, LynxOS® and BlueCat™ Linux. LynxOS is an embedded real-time operating system that is based on open standards and is Linux compatible. BlueCat Linux is an open-source Linux-based operating system specifically tailored for embedded systems. LynuxWorks also provides software development tools and applications that are important for developing and enhancing the performance and functionality of its embedded operating systems. In addition, LynuxWorks offers custom engineering and consulting services to enable its customers to develop and customize its products for their specific needs.

LynuxWorks' customers are primarily embedded systems developers in the communications and Internet infrastructure, aerospace and defense, office equipment and consumer electronics, and industrial controls and medical devices industries.

The shares will be offered by an underwriting group managed by Deutsche Banc Alex. Brown, Prudential Volpe Technology Group, a unit of Prudential Securities, Dain Rauscher Wessels, and ABN AMRO Rothschild LLC.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

When available, a preliminary prospectus relating to these securities may be obtained from Deutsche Banc Alex. Brown, 31 West 52nd Street, New York, New York, 10006, Attn.: Prospectus Department, (212) 250-2500; Prudential Securities, 111 8th Avenue, 5th Floor, New York, New York, 10011, Attn.: Prospectus Department, (212) 776-8190; Dain Rauscher Wessels, 60 South 6th Street, Suite 1800, Minneapolis, Minnesota, 55402, Attn.: Prospectus Department, (612) 312-1200; or ABN AMRO Rothschild LLC, 1290 Avenue of the Americas, New York, New York, 10104, Attn.: Prospectus Department, (212) 258-1300.

LynuxWorks and BlueCat are trademarks and LynxOS is a registered trademark of LynuxWorks, Incorporated. Linux is a trademark of Linus Torvalds. All other trademarks and product names are the property of their respective holders.

LynuxWorks press contacts

Kirsten Long Director, Marketing Communications LynuxWorks, Inc. USA +1 408-979-4404	Barbara Stewart Patterson & Associates USA 480-488-6909
Hamid Mirab Managing Director EMEA LynuxWorks Ltd. United Kingdom +44 208-906-9506	Peter van der Sluijs Neesham Public Relations Europe +44 1442-879222