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LynuxWorks and ISDCorp announce merger
Jul. 28, 2000

San Jose, CA -- (press release) -- LynuxWorks, Inc., (formerly Lynx Real-Time Systems), a leader in embedded Linux and a pioneer in the open standards real-time operating system (RTOS) industry, today announced a definitive merger agreement with Integrated Software & Devices Corporation (ISDCorp), a leading supplier of system software, intellectual property, and software services for the embedded computing market.

Under the terms of the agreement, LynuxWorks will acquire ISDCorp through a stock swap transaction whereby newly issued LynuxWorks shares will be swapped for all outstanding ISDCorp shares. The closing of the merger agreement is subject to customary conditions, including shareholder approvals.

The merger of ISDCorp is expected to increase LynuxWorks' ability to offer a broader range of scalable, high-performance and high-availability embedded Linux solutions to the marketplace. It significantly increases the size and scope of the LynuxWorks' professional services organization, thereby enabling them to better support the needs of customers who choose to develop Linux-based products. In addition, LynuxWorks will now have Linux support for a wider variety of target processors including ARM and MIPS.

ISDCorp was founded in 1991 and has over nine years of experience supporting leading electronic OEMs with operating system ports and device drivers for their embedded systems.

Subsequent to the merger, Reza Soliman-Noori, chairman and CEO of ISDCorp, will serve as president of ISDCorp and vice-chairman of the combined companies, Dr. William Hogan will continue to serve as president of LynuxWorks, and Art Swift of ISDCorp will assume the position of chief operating officer for LynuxWorks. All will report directly to Dr. Inder Singh, CEO and chairman of LynuxWorks, Inc.

About LynuxWorks (www.lynuxworks.com)

LynuxWorks, Inc., formerly Lynx Real-Time Systems, is a developer and supplier of Linux and real-time operating system software for reliable and high-performance embedded computing applications. LynuxWorks supports industry standards in communications, avionics, automotive, office automation and process control systems worldwide, enabling customers to leverage their investments in software and education. LynuxWorks products include the open-source BlueCat Linux and the scalable, Linux-compatible LynxOS real-time operating system; software frame-works for high-availability systems; development tools and technical support worldwide.

About ISDCorp (www.isdcorp.com)

Integrated Software & Devices Corporation (ISDCorp) is a leading supplier of system software, intellectual property and software services for the embedded computing market. The company specializes in microprocessor-specific operating system ports, software device drivers and embedded system integration. Headquartered in San Jose, ISDCorp has brought new technologies to market since 1991.


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