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SAN JOSE, Calif.—March 14, 2001—LynuxWorks™, Inc., a provider of open-source and true real-time embedded solutions for the post-PC era, and NeoMagic Corporation (Nasdaq: NMGC), a leading pioneer of embedded DRAM and logic technology, today announced that they are using LynuxWorks' embedded BlueCat™ Linux® for the upcoming NeoMagic System-on-Chip (SoC) platform for smart handheld devices.

The SoC solution from NeoMagic is designed to meet the ever-increasing demand for enhanced graphics, audio and video playback, low power consumption, compact form factor and affordable price targets in handheld systems, elevating the Personal Digital Assistant to the level of a Personal Entertainment Device. One key part of that success equation will be capable, yet cost-effective, operating systems for the deployment of embedded applications and drivers.

"We found the open-source nature of LynuxWorks' BlueCat Linux, and their aggressive porting services, quite suitable for keeping our development and deployment costs to a minimum," said Jason Chiang, product marketing manager at NeoMagic. "BlueCat also enables increased design validation and test coverage of the SoC during the product development phase, and therefore helps to reduce the time-to-market cycle."

LynuxWorks' BlueCat is an open-source Linux, targeted and tailored for embedded development and deployment. BlueCat Linux has been engineered to allow configuration to accurately match the requirements of embedded development from small devices to large-scale, multi-CPU systems.

"The support for LynuxWorks' BlueCat on NeoMagic's SoC will provide our customers with best-of-breed products and services for developing next generation smart devices," said Greg Rose, director of product management for LynuxWorks. "The reference design will extend LynuxWorks' commitment to embedded markets for Internet-based, consumer information and entertainment devices."

In addition to a stable commercial version of Linux, the company provides a complete software development environment and tools for debugging and tuning applications, optional support packages for software engineering, technical support, consulting and professional services.

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.

About NeoMagic

NeoMagic Corporation, based in Santa Clara, California, has pioneered the integration of DRAM, complex logic, and analog circuits into single-chip solutions. The company's proprietary MagicWare™ technology increases performance while reducing power consumption, by eliminating the need to drive signals off-chip to discrete memory. NeoMagic is embarked on a strategy of developing system-on-chip solutions for applications that require intensive graphics, video and audio, to provide value-added semiconductor solutions for mobilizing digital multimedia content for the Internet age. NeoMagic may be found at www.NeoMagic.com.

LynuxWorks and BlueCat are trademarks and LynxOS is a registered trademark of LynuxWorks, Inc. NeoMagic, the NeoMagic circle logo, and MagicWare are trademarks or registered trademarks of NeoMagic Corporation. Linux is a registered trademark of Linus Torvalds. Other brand or product names are registered trademarks or trademarks of the respective holders.

LynuxWorks press contacts

Kirsten Long Director, Marketing Communications LynuxWorks, Inc. USA +1 408-979-4404	Dave Reddy Weber Shandwick USA +1 650-868-4659	Peter van der Sluijs Neesham Public Relations Europe +44 1442-879222
Hamid Mirab Managing Director EMEA LynuxWorks Ltd. United Kingdom +44 208-906-9506	Elvia Soltero Weber Shandwick USA +1 408-685-0614