LynuxWorks, Inc. formerly Lynx Real-Time Systems, is a leader in embedded Linux and a pioneer in the open standards real-time operating system (RTOS) industry. LynuxWorks' software addresses the diverse and complex operating systems needs of the telecommunications, aerospace/defense, office automation, industrial solutions, Internet infrastructure, automotive/transportation, medical devices, retail, mobile computing, PDA markets, consumer, and business electronics. The company has the technology, products and partners to enable developers of embedded systems to fully leverage the opportunities presented by Linux. LynuxWorks therefore provides manufacturers a single platform to leverage their investments across various products. The company's LynxOS® RTOS has long been used for mission-critical applications, such as airline navigation and medical equipment that require the highest levels of reliability and performance. LynxOS has achieved the "five-nines" reliability standard meaning it's operational 99.999% of the time. The recent emergence of the Linux operating system presented a new opportunity to extend LynuxWorks' into embedded Linux applications. LynuxWorks' developed BlueCat™ Linux, an open source operating system. BlueCat Linux offers new options in cost, performance and size required to develop and run the smart devices that people encounter daily, such as gasoline pumps, auto navigation systems, set-top boxes and hand-held Internet devices. LynuxWorks merges with ISDCorp.

In July, 2000, LynuxWorks signed an agreement to merge with Integrated Software and Devices Corporation (ISDCorp). The merger creates a real synergy between the offerings of LynuxWorks and ISDCorp. The combined company will leverage the technology, experience and existing customer bases which are completely complementary to the other's. ISD Corp. provides Linux operating systems ports and device drivers for key embedded processors that LynuxWorks had targeted but has no product for today. In addition, ISDCorp has a strong professional services organization which will enable LynuxWorks to enhance its professional services depth and breadth of offerings.

LynuxWorks is the only ISO9001 registered company in the embedded Linux arena. It has a customer roster that includes numerous Fortune 500 companies, and worldwide telecommunication, aerospace and office automation companies. ISDCorp has always been valued by the leading processor companies for its products and services.

The ISDCorp's Royal Linux product is compatible with LynuxWorks' BlueCat Linux, and the professional services organizations will combine to provide services of greater value.