LynuxWorks Reports Q2 FY05 Results with 300 Percent Increase in Design Wins and 39 Percent Sales Growth

Embedded software leader's success fueled by Linux and open-standards software demand across new and existing markets, including military/aerospace, office automation, retail and wireless

SAN JOSE, Calif., December 8, 2004—LynuxWorks™ today announced its Q2 FY05 results, achieving 39 percent quarter-over-quarter growth in sales and increased profitability and cash flow. The company also reported a 300 percent increase in design wins for all of its world-class embedded software operating systems, including its flagship LynxOS® real-time operating system (RTOS), BlueCat® Linux® and LynxOS-178.

LynuxWorks' continued growth is attributed to the significant momentum of Linux and open standards-based software in a number of industries, including military/aerospace, office automation and wireless, as well as new markets such as retail. As part of LynuxWorks' long-standing commitment to open standards support, its entire product line is POSIX® conformant and capable of running open-standard applications.

Due to the company's continued growth, LynuxWorks has increased its engineering staff by more than 30 percent over the last two quarters to help bring new leading-edge products to market. As a result, LynuxWorks last quarter introduced a new enhanced tool set, the Luminosity Integrated Development Environment (IDE), based on the popular Eclipse IDE platform to provide embedded system developers a simplified, flexible platform to accelerate product time-to-market in the aerospace, telecommunications and military sectors.

"We had a very strong quarter as we continue to see significant growth across numerous market segments for our entire product line," said Dr. Inder Singh, CEO of LynuxWorks. "Open-standards software, including Linux, continues to gather significant momentum and receive strong market validation, as recently witnessed by traditional RTOS companies offering Linux-based products. As for our part, we have remained open to our customers' needs by providing the best and widest range of operating systems based on Linux and open standards. We look forward to future opportunities in key markets such military/aerospace, office automation, retail and wireless as open-standards software remains in high demand."

About LynuxWorks

LynuxWorks is a world leader in the embedded software market, providing operating systems, software development products and consulting services for the world's most successful communications, aerospace/defense, and consumer products companies. Established in 1988, the company is a technology leader in the real-time operating systems (RTOS) industry, and a founding member of the Embedded Linux Consortium (ELC). LynuxWorks' headquarters are located in San José, California.

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

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