LynuxWorks Doubles its Presence in Japan Through new Distributor deal with JEPICO Corporation

Addition of LynuxWorks' industry-leading embedded software products helps JEPICO deliver complete solution to extensive Japanese mil/aero customer base

SAN JOSÉ, Calif., July 24, 2006—LynuxWorks™ Inc., a world leader in the embedded software market, today announced that it has doubled its presence in the Japanese market by adding JEPICO Corporation, a Japanese embedded hardware supplier based in Tokyo, to its distributor network. JEPICO will offer the full LynuxWorks product line, including BlueCat® embedded Linux®, LynxOS®, LynxOS-178 RTOS and LynxSecure®, to its growing military and aerospace customer base.

For LynuxWorks, the distributorship will help it further penetrate the burgeoning Japanese embedded electronics market. According to an October 2005 report from analyst firm Fuji Keizai titled "Market Research for Embedded Electronic Systems," the Japanese embedded market will grow 23.5 percent between 2004 and 2007.

For JEPICO, this collaboration gives the company the opportunity to offer complementary software products that provide its customer base a complete hardware/software turnkey solution.

"Teaming up with one of the best-known military and aerospace suppliers in Japan is a victory for our customers—and theirs," said Bosco Chan, sales director for Asia Pacific and Japan at LynuxWorks. "JEPICO's commitment to outfitting its customers with complete solutions of superior quality mirrors LynuxWorks' commitment to the same. We believe this will be a very successful and mutually beneficial relationship."

As an industry innovator and leader in the embedded market, LynuxWorks solutions deliver a full range of operating systems that help developers optimize designs, reduce development time and costs, and get critical products to market ahead of the competition.

"We've seen a significant increase in demand among our military and aerospace customers for real-time and safety-critical operating systems, and are looking forward to meeting that demand with LynuxWorks' solutions," said Chimasa Fukushima, general manager of Sales Department 1 at JEPICO. "We are confident that our customers will find LynuxWorks' offerings to be extremely effective in the reduction of cost and time-to-market in their valuable design efforts."

About JEPICO Corporation

Founded in 1972, JEPICO is one of the best-known distributors of electronic components in the military, aerospace, and industrial markets. JEPICO proactively responds to the various needs of customers by providing a wide range of services including technical support, system integration, and software development. Headquartered in Tokyo, JEPICO has several offices in Japan, Hong Kong and the USA. For more details, please visit www.jepico.co.jp.

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 Jose, California.

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