Lineo™ Receives $37 Million in Investments

Investors Include Industry's Leading Companies

LINDON, UTAH -- May 1, 2000 -- Lineo, Inc., a leading developer of embedded Linux® system software™, today announced the receipt of $37 million in investment money, mostly from strategic investors. The investment dollars are targeted at continuing to build the embedded Linux market.

Among the investors are the following:

Access

http://www.access.co.jp

Acer Group

http://www.acer.com

Arima

http://www.arimacorp.com

Astoria Capital Partners, LP

http://www.astoriacap.com

Citrix Systems, Inc.

http://www.citrix.com

Compal Electronics, Inc.

http://www.compal.com

DaiShin Information & Communications Co., LTD

http://www.dsis.co.kr

Egan Managed Capital

http://www.egancapital.com

First International Computer (FIC)

http://www.fic.com.tw

Global Alliance

http://www.g-alliance.co.jp

J & W Seligman & Company

http://www.jwseligman.com

Hikari Tsushin

http://www.hikari.co.jp/

MITAC International Corporation

http://www.mitac.com.tw

Mitsubishi

http://www.mitsubishi.co.jp

Motorola

http://www.motorola.com

Samsung

http://www.sem.samsung.com

About Lineo, Inc.

Lineo, Inc., the 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. Visit Lineo, Inc. at www.lineo.com. For more information, contact Lineo, Inc. via e-mail: info@lineo.com or telephone: (801) 426-5001