Lineo adds Moreton Bay to its corporate portfolio

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Mar. 20, 2000

LINDON, UTAH -- (company press release) -- Lineo, Inc., a leading developer of embedded Linux system software, today announced that Moreton Bay Ventures, based in Brisbane, Australia has agreed to be acquired by Lineo. Moreton Bay is a leading developer of embedded VPN solutions for Internet appliances and also specializes in engineering development for the Motorola ColdFire chip platform.

"By adding the embedded Linux VPN solutions developed by Moreton Bay to the Embedix product family, Lineo provides OEM developers the additional Internet connectivity they need for Internet appliances and embedded devices," said Bryan Sparks, CEO of Lineo, Inc. "Their engineering expertise with the ColdFire chip will enhance our product support for this and other popular platforms."

The technical team at Moreton Bay offers a range of product, design and support services to actively promote and support solutions based on the ColdFire + Linux platform.

"Our products and technologies are very complementary and we share very similar business and operating models," said Bob Waldie, CEO of Moreton Bay. "We see a very rapid and straightforward integration between the two companies and significant ongoing leverage as we provide new and expanded solutions to a robust embedded Linux technology set."

Moreton Bay is the fourth company that Lineo is purchasing. In February, Lineo announced their intent to acquire Zentropix and Rt-Control, providing the Lineo Embedix product family with hard real-time solutions and the ability to embed Linux in small microcontrollers. Earlier this month, Lineo announced their intent to acquire USE, a custom engineering firm based in Japan with expertise in a number of hardware platforms and operating systems.

With 15 employees, Moreton Bay is based in Brisbane, Australia, and has a satellite sales and service office in San Jose. These offices will remain in place and augment the existing Lineo Sales, Engineering and Professional Services organizations. With the addition of the office in Australia, Lineo now has sales, services and engineering offices in Utah, Washington, Virginia, California, Toronto, Taiwan, the UK, Japan and Australia.

About Lineo, Inc. (www.lineo.com)

Lineo, Inc., a leading developer of embedded Linux system software, develops, markets and sells embedded Linux system software and applications that provide OEMs and consumers with simple, low-cost software for interacting with the Internet via embedded devices. Lineo owns the Embedix product family including Embedix Linux, Embedix SDK and Embedix Browser.

About Moreton Bay Ventures (www.moretonbay.com)

Moreton Bay offers a range of embedded Linux platforms, technologies and services that enable its OEM partners to develop custom Internet appliances. Moreton Bay owns the NETtel appliance family which provides rapid development tools for edge network devices that interconnect LANs to the net. NETtel was selected as finalist for the Best Hardware at Linux Expo/Comdex Fall (Nov 99) and for the Most Innovative Linux Product at Linux Open Source Expo (March 00). The company also develops innovative communications technologies that ensure embedded Linux devices can securely and simply interconnect over the Internet. Moreton Bay has been established for four years and has offices in both US and Australia.

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