Leading Global Electronics Company takes Equity Stake in MontaVista Software

SUNNYVALE, Calif., Nov. 12, 2002 — MontaVista Software Inc., the company powering the embedded revolution, today announced it has received an equity investment from Yamaha Corporation, the global company that manufactures and markets a broad range of products including digital musical instruments, professional audio and recording, and home entertainment systems.

“With the spread of broadband technology, embedded Linux® is proving an ideal match for digital audio products,” said Masatada Wachi, managing director and CTO, Yamaha. “We are impressed by the performance and reliability of MontaVista™ Linux and are convinced that this popular development platform can meet the requirements of our market. We expect our strategic partnership with MontaVista to help further develop the technology needed to enable the market to tap into newer applications and opportunities.”

According to a recent market research report from Venture Development Corporation (VDC), consumer electronics is the fastest growing market segment for Linux, at an annual growth rate of 49 percent and reaching $149.6 million in shipments by 2006. VDC also estimated that development in consumer electronics will be the largest segment of the embedded Linux market by 2006 with 43.2 percent of total revenue of $346 million.

“We welcome the investment from Yamaha, a leader in the audio, home and business electronics markets. These markets are currently undergoing a veritable revolution, moving from stand-alone devices to intelligent, networked appliances, in which Linux is increasingly the systems software of choice,” said Jim Ready, CEO and president, MontaVista Software and embedded industry pioneer. “Now, OEMs in these markets are demanding the benefits of Linux; lower development costs, faster time-to-market and a superior level of functionality for their products.”

The next generation of consumer products requires improved performance, lower power consumption, flexible and scalable architectures, robustness and openness. The feature-rich MontaVista Linux Professional Edition addresses these requirements and is already being deployed for a wide variety of embedded application designs in consumer electronics.

Yamaha joins a list of high-profile corporate investors, including IBM, Intel, Sony and Panasonic, who invested in MontaVista Software in its third round of funding announced earlier this year.

MontaVista Linux
MontaVista Linux Professional Edition 2.1 is one of the most widely used embedded Linux operating systems and development platforms. It includes an impressive array of cross-development tools for system and application code, unparalleled processor and board support, native real-time performance in Linux, and hundreds of deployable utilities, libraries, drivers, and other run-time components. Earlier this year, MontaVista Linux Professional Edition was named “Best Embedded Linux Solution” at the New York Linux World and Expo. The product received the “Electron d’Or” award for “Best Embedded Tool and Development Solution for 2002” from the prestigious French publication “Electronique,” and the Readers’ Choice Award for “Favorite Embedded Solution 2002” from the American magazine “Linux Journal.”

About Yamaha Corporation
Yamaha Corporation, headquartered in Hamamatsu-shi, Shizuoka, Japan, is a global comprehensive music instruments manufacturer, with 57 bases in 20 countries worldwide. At its core is a comprehensive business related to “Sound and Music,” including musical instruments such as piano, electronic instruments and wind instruments; audio/video products for the home theater; and sound generator semiconductors for mobile phones. In addition, Yamaha runs a family of resort facilities as a life/leisure business, and owns affiliate companies including Yamaha Motor Co., Ltd., which manufactures and sells motorcycles and boats; and Yamaha Livingtec Corporation, which creates and sells technologically advanced interior furnishings and equipment. The Yamaha group of companies contributes to the enhancement of the quality of life and to the creation of culture throughout the world.

About MontaVista Software
MontaVista Software is a leading global supplier of systems software for intelligent connected devices and their associated infrastructure, for applications ranging from communications infrastructure to consumer electronics. MontaVista powers the embedded revolution by providing GNU/Linux based open-source systems software solutions. Founded in 1999 by real-time operating system (RTOS) pioneer James Ready, MontaVista Software’s principal products include MontaVista™ Linux® Professional Edition and MontaVista™ Linux® Carrier Grade Edition. The Professional Edition comprises a Linux-based embedded source and binary distribution, cross development environments, and a versatile set of tools for the x86/IA-32, PowerPC, StrongARM, MIPS, SH, ARM, XScale, Xtensa and other microprocessor architectures. The Carrier Grade Edition is a next-generation high availability product that is the first Commercial Off-The-Shelf Linux (COTS) platform for telecommunications and carrier-grade applications. MontaVista Software also provides several complementary technology products addressing specific customer needs, such as Java development and runtime, powerful graphics capabilities 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, Panasonic and Sony Corporation. For more information about MontaVista Software, please visit http://www.mvista.com, email to 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

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 x340
E-mail: pcolby@pacifico.com