LynuxWorks Maximizes Customer Value With Two New Competitive Pricing Packages

Business Wire, Dec 9, 2002

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Dec. 9, 2002

Unprecedented MSRP-Based Pricing Model and Developer Pack

Provide Cost Advantages, Free Source Code for LynxOS(R) Developers

Proving its leadership in consistently offering the most feature-rich and cost-effective embedded operating systems to developers in a diverse array of markets, LynuxWorks(TM) today announced two aggressive new pricing models. As a result, LynuxWorks customers will benefit from additional cost savings at every step of the development cycle, from purchase of an operating system to deployment and maintenance of their embedded applications.

For developers in the highly competitive and cost-conscious consumer electronics market, LynuxWorks is now the first company to align the pricing of its embedded real-time operating system (RTOS), LynxOS(R), with the MSRP (manufacturer's suggested retail price) of the end product in which it is embedded. With this approach, even developers of low-volume products can select a high-performance RTOS without paying the traditional costs associated with volume-based royalty pricing.

In addition, LynuxWorks has created a Developer Pack that offers programmers free access to LynxOS source code, which will save time, hassle and support calls throughout the application development and debugging process.

"With these new programs, LynuxWorks builds on its reputation of delivering embedded solutions at aggressive price-points that make sense for our customers' market needs," said Dr. Inder Singh, CEO of LynuxWorks. "We have always provided an array of pricing structures so that our customers can build products in the most timely and cost-effective manner. The MSRP-based pricing and the LynxOS Developer Pack respond to the requests from our developer community to provide tailored pricing programs for the cost-sensitive consumer electronics market."

MSRP-Based Pricing

LynuxWorks' MSRP-based pricing is a breakthrough program that bases the price of LynxOS on the retail price of the product in which it is being used. Designed for makers of low-cost consumer electronic devices, MSRP-based pricing allows developers to integrate LynxOS into more products by reducing royalty fees to a negligible portion of the device's MSRP. LynxOS royalties scale based on the MSRP of devices priced at $150 and above, and manufacturers get one fixed low cost per product, regardless of the number of processors and LynuxWorks software content in the device. As a result, LynuxWorks' customers can lower the cost of goods in their production devices and fix those costs based on the MSRP rather than volume. In the past, developers were locked into substantial volume commitments to get a desirable price, or were forced to sacrifice quality and performance with the operating system they chose. Now they can have the robust LynxOS RTOS at an affordable price, even in low volumes.

LynxOS Developer Pack

The LynxOS Developer Pack is designed to help LynuxWorks' customers maximize their productivity while using LynxOS. Available for $50,000, the LynxOS Developer Pack includes five developer seats, five VisualLynux(TM) IDE packages, associated priority support, and LynuxWorks' premium developer tool for system tracing, SpyKer(TM). In addition, developers have free access to the LynxOS source code, offering greater understanding and efficiency when designing, debugging and supporting embedded applications.

"In our support of the open source movement, LynuxWorks has long understood the link between source code access and the success of our customers' embedded projects," said Dr. Singh. "With free source code access included in the Developer Pack, we're making it as easy and cost-effective as possible for developers to have limitless flexibility and control over their LynxOS implementations."

Availability

LynuxWorks' MSRP-based pricing and LynxOS Developer Pack programs are available immediately.

About LynuxWorks

LynuxWorks is a world leader in the embedded software market, providing operating systems, software development products and consulting services for the world's most successful communications, aerospace/defense, and consumer products companies. Established in 1988, the company is a founding member of the real-time operating systems (RTOS) industry, and a leading participant in the Embedded Linux Consortium (ELC). LynuxWorks' headquarters are located in San Jose, California. The company's products include the open-source BlueCat(R) Linux and the scalable, Linux-compatible LynxOS real-time operating system. World-class companies use LynuxWorks' products, including 3Com, Alcatel, Boeing, Ericsson, Hewlett-Packard, Jet Propulsion Laboratory, Lockheed Martin, Lucent Technologies, Marconi, Mitsubishi, Motorola, NEC USA, Raytheon, TRW and Xerox. For more information, please visit www.lynuxworks.com.

LynuxWorks, SpyKer and VisualLynux are trademarks and LynxOS and BlueCat are registered trademarks of LynuxWorks, Inc. Linux is a registered trademark of Linus Torvalds. Other brand or product names are registered trademarks or trademarks of the respective holders.