EAST FISHKILL, NY and SUNNYVALE, Calif. - January 22, 2002 - IBM (NYSE:IBM) and MontaVista Software, Inc., today announced a technology agreement under which MontaVista’s embedded Linux platform will expand its support for the IBM PowerPC microprocessor.

The agreement is designed to help ensure the IBM PowerPC microprocessors are fully supported by MontaVista™ Linux® for embedded system and networking applications. IBM and MontaVista also plan to pursue joint sales and marketing activities.
In a separate, concurrent action, IBM has also taken a small equity stake in MontaVista. Terms were not disclosed.

"Linux has become a requirement for many embedded and networking applications, so we’re strengthening our relationship with MontaVista Software to build on the strong enablement of Linux in IBM products," said Scottie Ginn, vice president, Pervasive Computing Group, IBM Microelectronics. "IBM continues to invest in the hardware and software technology essential to meeting the needs of our customers. We believe that MontaVista Linux along with the IBM PowerPC and IBM PowerNP can provide a consistent, scalable environment for everything from cell phones to routers."

MontaVista Software was one of the first embedded software companies to develop a Linux-based platform for the IBM PowerPC family of processors, a focus that the company has maintained during its two years of successful commercial operation. The two companies had previously announced that they are collaborating to make the Linux operating system available for IBM PowerPC-based set-top box chips and IBM PowerNP NP4GS3 network processors.

"Embedded systems developers have long valued the stability and performance embodied in the PowerPC architecture," said Jim Ready, CEO, MontaVista Software. "Now these same developers can couple next-generation IBM PowerPC and IBM PowerNP hardware platforms with the openness and performance of MontaVista’s embedded Linux environment. MontaVista Software joins IBM in delivering the software and hardware foundation for the next wave of networking systems and consumer devices."

The scalable IBM PowerPC architecture provides a common Linux programming platform across the e-business infrastructure. The IBM PowerNP and IBM PowerPC processors and cores are suited for data storage devices and servers that feed the network; wired hubs, routers, and switches that make up the network; and the hand-held communications devices and other pervasive computing products that access the network.

IBM’s stand-alone microprocessors and embedded processors are available in speeds ranging from 25 to 700MHz, each varying in power consumption, cost, size, and level of integration.

MontaVista Linux Professional Edition is available direct from MontaVista and MontaVista distribution channels worldwide as a product subscription, providing the MontaVista Linux kernel, software updates, utilities, development tools and one year of technical support. It is open source, royalty-free, and built from 100 percent pure Linux sources. Also available from MontaVista Software are expanded technology add-on products, including embedded Java, High-Availability technology, and powerful graphical toolkits.

About IBM Microelectroics

IBM Microelectronics is a key contributor to IBM's role as the world's premier information technology supplier. IBM Microelectronics develops, manufactures and markets state-of-the-art semiconductor and interconnect technologies, products and services. IBM makes chips for a wide range of devices from the world's most powerful computers to the smallest cell phones. Its superior integrated solutions can be found in many of the world's best-known electronic brands. More information about IBM Microelectronics can be found at: www.chips.ibm.com.

MontaVista Software, Inc. powers the embedded revolution by providing open-source systems software solutions for embedded developers. Founded in 1999 by real-time operating system (RTOS) pioneer James Ready, MontaVista's principal products include MontaVista™ Linux®, a Linux-based embedded source and binary distribution, cross development platform and a set of tool kits for x86/IA-32, PowerPC, StrongARM, MIPS, SH, ARM, XScale and other microprocessor architectures. MontaVista offers developers a family of products and services for embedded design and development targeted for applications ranging from communications infrastructure to consumer devices. MontaVista Software also provides several technology add-on products addressing specific customer needs such as the Java Development environment, High Availability technology, powerful graphics toolkits and more.

Headquartered in the heart of Silicon Valley in Sunnyvale, Calif., MontaVista Software is a privately held company funded by leading investors such as Alloy Ventures, US Venture Partners, RRE Ventures, WR Hambrecht + Co., IBM, Intel Capital and Sony Corporation. For more information about MontaVista Software, please visit http://www.mvista.com or email info@mvista.com or call (408) 328-9200.

Linux is a registered trademark of Linus Torvalds. MontaVista is a trademark of MontaVista Software Inc. All other names mentioned are trademarks, registered trademarks or service marks of their respective companies.

Contacts:

IBM

Michael Loughran
IBM Microelectronics
845.892.5463
mloughra@us.ibm.com

MontaVista Software

Joe Samagond
Director of Marketing and Corporate Communications
MontaVista Software Inc.
Phone (408) 328-9234
E-mail: jsamagond@mvista.com

Patricia Colby
PR Strategy and Business Development
Pacifico Inc.
Phone (408) 293-8600 ext. 340
E-mail: pcolby@pacifico.com