MontaVista Software Among Upside ``Hot 100''; Recognized for Showing Clear Path to Profitability.

Business Editors

SUNNYVALE, Calif.--(BUSINESS WIRE)--June 11, 2002

MontaVista Software, Inc., the company powering the embedded revolution, has been chosen as one of Upside magazine's "Hot 100" companies for 2002. According to the editors of Upside, this year's "Hot 100" list focuses on companies with promising technologies and solid business models, which, despite the difficult economy, show substantial growth over the past year and a clear path to profitability.

"All of this year's Hot 100 companies demonstrated impressive revenue growth and sustained momentum -- a monumental achievement in this economic climate," said Jerry Borrell, editor-in-chief of Upside Magazine. "We also selected MontaVista Software because of the company's technology achievements, customer acceptance, industry partnerships, financial backing, management savvy and impressive marketing."

In March, MontaVista Software was also named as one of Electronic Business magazine's "Thirty Best Small Electronics Companies for 2002." Electronic Business selected companies based on innovation, leadership and technology, as well as strong revenue growth and future growth potential.

MontaVista Software Inc. is a leading provider of open-source systems software solutions for embedded developers. Founded in 1999 by real-time operating system (RTOS) pioneer James Ready, MontaVista Software's principal products include MontaVista(TM) Linux(R) Professional Edition and MontaVista(TM) Linux(R) Carrier Grade Edition.

The analyst group Venture Development Corporation (VDC) recently forecasted that worldwide shipments of embedded Linux operating systems, software development tools and related services would increase from $59 million in 2001 to an estimated $346 million in 2006, a compound annual growth rate of 42 percent. In the VDC report, MontaVista Software is recognized as a leader in the embedded Linux arena with more than 20 percent market share.

Earlier this year, MontaVista Software received $28 million in its third round of funding, from top tier venture capital companies US Venture Partners, Alloy Ventures, Intel Capital, RRE Ventures and WR Hambrecht & Co., and from major corporations such as IBM, Intel, Panasonic and Sony.

"MontaVista Software is demonstrating the strong validation and successful acceptance of Linux in the mainstream embedded market," said Jim Ready, president and CEO, MontaVista Software. "In 2002, we expect that Linux will become the platform of choice for carrier-grade applications in telecommunications and also predict the burgeoning use of Linux in name-brand digital consumer electronics."

In 2001, MontaVista revenues increased 250 percent over the previous year. The company achieved more than 250 new customer design wins, of which more than 50 percent were with Fortune 100 and Global 500 corporations. Its larger customers renewed their annual product subscriptions at rates exceeding 115 percent of original purchases. In the same time period, MontaVista added several additional Global 500 corporations to its current list of over 425 customers, including Ericsson, Nokia, ITT and Sony.

UPSIDE has published the Hot 100 Award winners in its June 2002 issue and has unveiled the winners online at UPSIDE.com at www.upside.com/hot100.

About MontaVista Software Inc.

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 Software's principal products include MontaVista(TM) Linux(R) Professional Edition and MontaVista(TM) Linux(R) Carrier Grade Edition. The Professional Edition is 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, Xtensa and other microprocessor architectures. The Carrier Grade Edition is a second-generation high availability product that is an ideal Linux platform for telecommunications and carrier-grade applications. MontaVista Software also provides several complementary technology products addressing specific customer needs such as the Java development environment, high availability technology, powerful graphics toolkits and more. MontaVista offers developers a family of products and services for embedded design and development targeted for applications ranging from communications infrastructure to consumer devices.

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 [e-mail] 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.