Integrated Systems pSOSystem Slated for IBM Digital Set-Top Box Solutions Program.

SUNNYVALE, Calif.--(BUSINESS WIRE)--March 31, 1997--

pSOSystem RTOS continues to dominate cable and

satellite television market

Integrated Systems, Inc. (ISI)(NASDAQ: INTS), the leading supplier of embedded software solutions, today announced that IBM will use the combined technologies of ISI and Doctor Design, Inc. (San Diego, Calif.), its engineering services subsidiary, for IBM's new digital Set-Top Box (STB) Solutions Program. IBM's new STB Reference Design Kit will use ISI's pSOSystem embedded real-time operating system (RTOS), which runs on a PowerPC(TM) 403GC CPU for controlling the functions of the IBM CD21 MPEG2 A/V Decoder, an MPEG2 Transport, video decoding and peripheral application-specific integrated circuits (ASICs).

"We are very pleased that IBM has selected ISI's products due to our proven track record in the television STB environment and for bringing very complex systems to market quickly," stated ISI president and chief executive officer, David St. Charles. "ISI's product offerings, commitment to the set-top market, and Doctor Design's depth of experience in digital video implementation provide a very attractive solution for companies like IBM."

According to Tom Collopy, manager of PowerPC Embedded Tools Group at IBM, "ISI and IBM offer complementary solutions for embedded product design and embedded multimedia. Our decision to utilize pSOSystem strengthens our commitment to providing true leading-edge products."

Doctor Design was commissioned to implement the IBM STB Reference Design Kit and integrate ISI's pSOSystem embedded RTOS and other ISI software components to create a fully functional reference STB. The STB reference design and the Doctor Design MPEG2 Transport Stream Generator System provide an effective and portable environment to accelerate time to market of IBM PowerPC-based STBs.

ISI will provide a Board Support Package (BSP) for the IBM STB Reference Design, offered as a platform in ISI's pSET(TM) STB solution. ISI's pSET includes pSOSystem, which consists of its pSOS(R) embedded kernel and a BSP for sample reference board design. The addition of the IBM STB reference board adds a PowerPC-based design to MIPS-based pSET architectures currently being shipped.

pSET also contains ISI's advanced networking capabilities including ZeroCopy(TM) TCP/IP, the OpEN(TM) (Open protocol Embedded Networking) STREAMS-based multi-protocol networking environment, and Internet utilities. pSET also provides developers with ISI's pRISM+(TM) embedded systems development tools suite. To complete the bundle targeted at STB developers, pSET provides embedded drawing primitives that enable development of custom application-interface graphics for display on a TV screen.

With over 15 million installations worldwide, and 30 STB design wins to date, pSOSystem is the world's most widely adopted software for embedded systems products and is by far the operating environment of choice for emerging embedded digital media and communications products.

About Integrated Systems, Inc.

Integrated Systems, Inc. (ISI)(NASDAQ:INTS) is the leading worldwide provider of embedded operating software, and simulation and control design tools for the telecommunication/data communication, digital media, consumer electronics, office automation, and Embedded Internet(TM) industries. Its software helps manufacturers bring higher quality, more fully featured products to market faster. The Company's business model is based on the sale of software development licenses for creating new products followed by runtime licenses for products using its embedded operating software. Founded in 1980, the Company is headquartered in Sunnyvale, California, with sales and service offices throughout Asia/Pacific, Europe, Canada and the United States. Additional information about ISI is available on the Internet at http://www.isi.com . -0-

pSOS is a registered trademark and pSET, pSOSystem, OpEN, pRISM+, SpOTLIGHT, Embedded Internet, and ZeroCopy are trademarks of Integrated Systems, Inc. PowerPC is a trademark of IBM. All other products are the trademarks, service marks, or registered trademarks of their respective holders.

CONTACT: Karen McLennan

Integrated Systems, Inc.

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Martin Hayward

Rainier Corporation

(for Integrated Systems)

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