Insignia's Jeode Technology Selected by eMachines For New MSN Companion Device

Fremont, CA, October 9, 2000 – Insignia Solutions (NASDAQ: INSGY), the leading provider of accelerated Javasolutions for Internet appliances and embedded devices, announced today that its accelerated Jeodetechnology, PersonalJavaedition, provides the Javafunctionality for the new MSN Companion by eMachines which was announced earlier today by eMachines, Inc. (Nasdaq: EEEE) and MSN. Insignia's distribution partner BSQUARE (Nasdaq: BSQR) played a central role in securing the eMachines business and integrating Insignia's patent-pending virtual machine technology into the eMachines device.

eMachines is the third-largest vendor of desktop PCs sold through U.S. retailers. The new MSN Companion by eMachines runs on a version of Microsoft Corp.'s (Nasdaq: MSFT) Windows CE operating system and is powered by an x86 processor. Insignia's Jeode platform provides eMachines users with the ability to run the many Java applications and applet available on the Web, enhancing their Internet experience.

The eMachines device, which is expected to begin shipping later this month, provides consumers with an easy, affordable and personal experience on the Web as well as a way to communicate with others via the Internet. Designed for consumers who are new to using e-mail and the Internet, the device powers on instantly, accesses the Web using the MSN Internet Access service, and automatically connects users to best-of-breed services from MSN such as the MSN Hotmail Web-based e-mail service, MSN eShop and MSN Search, while providing users with full access to the entire Web.

"In order to have a rich, complete Internet experience, users of the MSN Companion by eMachines need the ability to run Java applications and applets, including games, chat, personalized news tracking, real-time stock quotes and sports headlines, financial calculators and other dynamic content," said Stephen Dukker, president and CEO of eMachines. "Insignia's Jeode platform is key in delivering this experience with by far the most responsive and robust Java application performance available."

"We're elated that eMachines has chosen our accelerated Jeode technology to Java-enable their MSN Companion," said Richard Noling, president and chief executive officer of Insignia Solutions. "This design win provides further validation that our patent-pending virtual machine technology is an ideal solution for Internet appliances targeted to a mass market audience because it delivers the accelerated performance and robust Java application behavior users expect."

"Insignia's Jeode Java solution is an important component of BSQUARE's product mix aimed at the rapid development and deployment of intelligent computing devices," said Lew Larson, vice president of marketing for BSQUARE. "As our business in the Internet appliance segment grows, we will continue to offer Java capability from Insignia as well as our many other plug-in solutions. BSQUARE's goal is to provide full support for companies like eMachines to deliver devices that can easily access the wealth of information utilized on the Web today."

Jeode Platform
The Jeode platform is Insignia's accelerated implementation of Sun Microsystems (Nasdaq:SUNW) PersonalJava and EmbeddedJavaspecifications tailored for Internet appliances and embedded devices. At the core of the Jeode product is the "Sun Authorized Virtual Machine", the Jeode Embedded Virtual Machine (EVM), an accelerated runtime engine that delivers an optimal balance of performance and reliability in a smaller memory footprint. Using a proprietary technique called dynamic adaptive compilation, the Jeode EVM can execute Java applications on average six times faster than interpretive VMs.

The Jeode platform is designed to run with a wide range of operating systems and target processors. It currently supports operating systems such as Windows CE (including the PocketPC version), Windows NT Embedded, Windows NT, VxWorks, ITRON and Linux, and processors such as MIPS, ARM, Intel x86, PowerPC and Hitachi SH-3 and SH-4.

Insignia Solutions

Insignia Solutions is the leading provider of accelerated Java solutions that dynamically optimize the use of available system resources. Insignia's patent-pending virtual machine technology is licensed by such leading companies as Compaq Computer Corporation (NYSE: CMPQ ), Intel Corporation (Nasdaq: INTC ), Quantum Corporation (NYSE: DSS , HDD ), Fujtisu PC, Wyse Technologies, Gemstar/TV Guide (Nasdaq: GMST ), Olivetti Lexikon, Phoenix Technologies (Nasdaq: PTEC ) and Victor Data Systems (a subsidiary of JVC). Insignia Solutions is publicly-held with headquarters in Fremont, California, and its main R&D facilities in High Wycombe, England. Sales and marketing departments are located in Fremont and High Wycombe. For additional information on Insignia and its products, call 800/848-7677 in the United States, +44 (0)1628 539 500 in Europe, +81 3 5404 3440 in Japan or visit the company's website at http://www.insignia.com.

© Insignia and Insignia Solutions are registered trademarks and Jeode, Embedded Virtual Machine and EVM are trademarks of Insignia Solutions, Inc. Sun, Java, EmbeddedJava, and PersonalJava are trademarks of Sun Microsystems, Inc. eMachines is a trademark of eMachines, Inc. All other trademarks are the property of their respective holders.

Forward-Looking Statements

This press release contains forward-looking statements relating to future events and results that are based on eMachines Inc.'s current expectations. These statements relate to the outlook and prospects for eMachines and the markets in which it operates. These statements involve risks and uncertainties including, without limitation, the level of demand for the MSN Companion; eMachines' and its suppliers' ability to timely develop, deliver and support the MSN Companion; eMachines' ability to manage inventory; the cost and availability of key product components; competitive pressures; new product introductions by third parties; technological innovations; and overall market conditions, including demand for the MSN Companion and Internet services in general. Consequently, actual events and results in future periods may differ materially from those currently expected. Additional information regarding the factors that may affect eMachines' future performance is included in the public reports that eMachines files with the Securities and Exchange Commission.

The statements in this press release relating to matters that are not historical are forward-looking statements that involve risks and uncertainties. These forward-looking statements include the anticipated timing of product releases, the expected customer demand for existing and new products, the expected revenue from product sales, the growth of the market for Insignia Solutions' products, and the market demand for the Jeode platform. Actual results could differ materially from those anticipated. There can be no assurance that the Company will be able to market and support an EVM product or that such product will be accepted by customers. The Company's business is subject to a variety of other risks and uncertainties that include, but are not limited to, rapid technological changes in the industry, increased competition, and timely introduction and customer acceptance of the Company's products. These and other risks and uncertainties are further described in the Company's Form 10-K for the year ended December 31, 1999 and will be described from time to time in the Company's other filings with the Securities and Exchange Commission.