LynuxWorks on the rise: Company Reports Accelerated Growth with Strong Quarterly Financial Results

Embedded software leader poised to capitalize on momentum in 2006 with new round of funding and executive appointments to drive global revenue growth

Robert Day, vice president of marketing

Joe Wlad, director of product marketing

SAN JOSÉ, Calif., December 12, 2005—LynuxWorks™ Inc., a world leader in the embedded software market, today announced its Q2 fiscal year 2006 financial results, achieving its highest revenue and most successful quarter in almost four years. In addition, LynuxWorks announced it has closed $11 million in funding from its current investors.

LynuxWorks continues to achieve significant sales and design-win growth across its entire product portfolio, including a dramatic increase for both its LynxOS® RTOS and LynxOS-178 safety-critical RTOS. LynuxWorks' success can be attributed to growth across various industry segments, including the military-aerospace market where revenue increased 95 percent showing continued adoption for LynuxWorks technology.

LynuxWorks experienced strong growth across North America, Europe and Asia, as the company continues to invest in rebuilding the organization in these regions with the following executive appointments:

• Robert Day was named vice president of marketing for LynuxWorks, responsible for all global external and internal marketing functions. Mr. Day will lead LynuxWorks' product marketing and program management teams as well as drive all of LynuxWorks worldwide marketing initiatives, including corporate communications and brand strategy. Day brings to LynuxWorks more than 20 years experience in the embedded industry. Previously, Mr. Day was head of marketing for Mentor Graphics' embedded software division where he successfully built a solid brand around the Nucleus RTOS, bringing new technologies such as UML and Eclipse-based development tools into the product portfolio.
• Joe Wlad was appointed director of product marketing where he will be responsible for guiding product direction. Mr. Wlad has more than 21 years of safety-critical systems design, development, test and evaluation experience at Intermetrics, Inc., McDonnell-Douglas Aircraft Company in the MD-11 Test and Certification organization and United Airlines' B747 Fleet engineering and modification organization. Most recently, Mr. Wlad was a senior product and project manager at Wind River focusing on the aerospace market. He is a FAA DER for Systems and Equipment and Software and has co-authored three patents on Global Positioning System integrity functions.
• Bosco Chan was appointed managing director, APAJ sales, with more than 23 years of engineering and sales experience in the telecommunications and automation industries. In his new role, he will be responsible for directing sales and business development in the Asia-Pacific/Japan regions. In addition, Mr. Chan will focus on LynuxWorks' involvement and growth within the telecommunications industry. Prior to joining LynuxWorks, Mr. Chan was the embedded communications computing director of worldwide field application engineering for Motorola, where he not only developed and drove professional services sales, but also directed the company's development and lead the acquisition process of new design-wins. Mr. Chan was also responsible for leading the transformation of the WW Field Application Engineering team.

"LynuxWorks is on the move as we are making significant strides to deliver the most innovative and reliable embedded software to meet our customers' development needs," said Dr. Inder Singh, CEO of LynuxWorks. "Our performance this past quarter is especially encouraging as we continue to receive strong market validation with record sales growth across our entire product portfolio. With our current financial health, new round of funding and recent executive appointments of Bosco Chan, Robert Day and Joe Wlad, we are confident that we are positioned for continued growth and expansion."

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. LynuxWorks' headquarters are located in San José, California.

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

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