LynuxWorks and ISDCorp Complete Merge

End-to-end solutions for embedded computing now available

SAN JOSÉ, CA—November 6, 2000—LynuxWorks™, Inc., a provider of open source and true real-time embedded solutions for the post-PC era, today announced that it has merged with Integrated Software & Devices Corporation (ISDCorp), a leading supplier of system software, intellectual property and software services for the embedded computing market. LynuxWorks has received all necessary shareholder and governmental approval to consummate its merger with ISDCorp.

Under the terms of the agreement, LynuxWorks acquired ISDCorp through a stock swap transaction whereby newly issued LynuxWorks shares and options were swapped for all outstanding ISDCorp shares.

ISDCorp was founded in 1991 and has over nine years of experience supporting leading electronic OEMs with operating system ports and device drivers for their embedded systems.

As a result of the merger, Reza Soliman-Noori, former chairman and CEO of ISDCorp, is now the president of ISDCorp and vice-chairman of the combined companies. Art Swift, former president of ISDCorp, will assume the position of chief operating officer for LynuxWorks. Both will report directly to Dr. Inder Singh, CEO and chairman of LynuxWorks, Inc.

About LynuxWorks

LynuxWorks™, Inc. is a provider of open source and true real-time embedded solutions for the post-PC era. LynuxWorks supports industry standards in communications, aerospace and defense, consumer and business electronics, industrial control systems, Internet infrastructures, automotive/transportation, medical devices, and retail industries. LynuxWorks products include the open-source BlueCat™ Linux; the scalable, Linux-compatible LynxOS® real-time operating system; software frameworks for high-availability systems; development tools and technical support worldwide.

Safe harbor

Except for the historical information and discussions contained herein, statements included in this release may constitute "forward-looking statements". These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those that may be projected by these forward looking statements. These risks and uncertainties include, but are not limited to, risks relating to the consummation of the contemplated transaction, including the risk that required regulatory clearances or shareholder approval might not be obtained in a timely manner or at all. In addition, statements in this release relating to the expected benefits of the contemplated transaction are subject to risks relating to the timing and successful completion of technology and product development through production readiness, integration of the technologies and businesses of LynuxWorks and ISDCorp, unanticipated expenditures, changing relationships with customer, suppliers and strategic partners. Neither company undertakes an obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

LynuxWorks and BlueCat Linux are trademarks and LynxOS and is a registered trademark of LynuxWorks, Inc. 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