Business Editors/High-Tech Writers

MILPITAS, Calif., and LINDON, Utah--(BUSINESS WIRE)--July 17, 2001

Panasonic(R) and Lineo(R), Inc., a leading innovator in embedded systems, real-time and high-availability solutions, today announced the availability of a Lineo Embedix(TM) embedded Linux(TM) operating system image for Panasonic's OEM DVD-RAM drive. By using an Embedix image created with the Lineo Embedix Software Development Kit (SDK) 2.0, the Panasonic 4.7/9.4GB rewritable DVD drive becomes a removable mass storage solution for any embedded device with an ATAPI or SCSI connector.

Offering 4.7GB of fast, random access on a single-sided disc (9.4GB on the double-sided disc) and more than 100,000 overwrites for less than a penny per Megabyte, Panasonic DVD-RAM drives are ideal for meeting today's higher storage requirements. The versatility of the standards-compliant Panasonic drive makes it even more cost-effective. The same drive can be used for removable storage, backup/recovery and as a reader for discs currently accepted by CD-ROM, CD Audio, CD-R, CD-RW and video CD drives, as well as DVD-ROM, DVD video, and DVD-R drives.

With these features and Linux support, the Panasonic DVD-RAM drive can easily move into a broad range of emerging applications.

According to Venture Development Corporation, a market research firm that recently completed a study on the embedded Linux market, the leading applications for embedded Linux OSs in 2000 were: telecom/datacom, consumer electronics, industrial automation, retail automation, office automation, military/aerospace, automotive, information automation, and medical. The consumer electronics market is expected to grow at the fastest rate.

Linux-based home entertainment systems such as TiVo, which recently won a patent for Personal Video Recording, is just one example of the growing consumer electronics.

Lineo Embedix differs from a traditional distribution of the Linux operating system because it includes source code packages and a set of patches and configuration files required to create the binary software for an embedded target system. Embedded features include a broad range of capabilities including 2D and 3D graphics, fonts, streaming video and audio.

"Lineo Embedix SDK 2.0 is able to tap the power of the newest features available in the Linux 2.4x kernel and push them into the operating systems of countless embedded devices," said Bryan Sparks, Lineo CEO. "By combining the Panasonic drive with the state image for the Lineo Embedix SDK 2.0 tool chain, OEMs have a solid building block for a more versatile embedded storage with a DVD solution."

The expansive storage capacity of the Panasonic 4.7 GB DVD-RAM drive allows for the storage of two hours of MPEG2 theater-quality video, seven hours of CD-quality audio or thousands of digital photographs.

"Lineo has provided the industry with a valuable service in generating an Embedix operating system image for the Panasonic DVD-RAM drive," said Dana Berzin, DVD product manager at Panasonic Industrial Company's Global Computer Group. "It will enable OEMs to reduce product time-to-market cycles so they can quickly penetrate the growing embedded system market."

Venture Development Corporation estimates that shipments of embedded Linux OSs, software development tools, and related services will increase from $28.2 million in 2000 to $306.6 million by 2005, a compound annual growth rate (CAGR) of 61.2 percent.

Pricing and Availability

A state image of the drive configuration will be made available to Embedix SDK 2.0 users through http://members.lineo.com. Lineo Embedix SDK 2.0 customers can develop their own configurations using this base configuration. Users of Lineo Embedix SDK 2.0 are able to seamlessly add third-party technologies or board support packages to the SDK 2.0. A developer seat license for Lineo's Embedix SDK 2.0 for Linux is available for $4,995.

Panasonic Industrial Company's 4.7GB OEM DVD-RAM drive is available as an internal drive with a SCSI-2 interface (model LF-D291N) or with an ATAPI interface (model LF-D211V). The Panasonic-branded internal drive, model LF-D201U, is available from Panasonic Digital Document Company (PDDC) and has an MSRP of $549. Double-sided 9.4GB DVD-RAM media, 4.7GB single-sided media and 4.7GB bare disc media, which are marketed under the Panasonic brand name, are also available from several other leading manufacturers. The 4.7GB bare disc DVD-RAM media can be played back on the latest Panasonic DVD-ROM drives, as well as Panasonic's new DVD Player and DVD Recorder.

About Lineo, Inc.

Lineo(R), Inc. provides embedded systems, real time and high availability solutions that include software, hardware reference designs and professional services. Lineo's solutions allow OEMs to create devices and systems that interact with the Internet while helping OEMs to reduce system requirements, per-unit costs and time-to-market. The company's key product lines include: Embedix(TM) (embedded Linux system software), uClinux(TM) (embedded Linux for MMU-less processors), SecureEdge(TM) (Linux-based Internet appliances including VPN Internet routers, firewalls and network attached storage), RTXC(TM) (general purpose and DSP real-time operating system), BeaconSuite(TM) (x86 development toolkit), RTXC(TM) Quadros(TM) (a real-time operating system for multi-processor devices) and Availix(TM) (mission-critical high availability Linux cluster solutions). Contact Lineo at http://www.lineo.com, via e-mail to info@lineo.com or by calling 801/426-5001.

About Panasonic

Panasonic is the best known brand name of Osaka, Japan-based Matsushita Electric Industrial Co., Ltd. (NYSE: MC), one of the world's leading producers of electronic and electric products for consumer business and industrial use. Panasonic Industrial Company is a unit of Matsushita Electric's principal North American subsidiary, Matsushita Electric Corporation of America. Additional information on Panasonic and Matsushita Electric is available at www.panasonic.com.

For more information on the Panasonic DVD-RAM OEM drive and DVD media, contact Panasonic Industrial Company, 1600 McCandless Drive, Milpitas, CA 95035; 408/945-5600, FAX 408/262-4214, E-mail berzind@panasonic.com. Or, visit the company's Web site at www.panasonic.com/oemdvd-ram. For more information on Panasonic-branded DVD-RAM drives and DVD media, contact Panasonic Digital Document Company, Two Panasonic Way 7D-8, Secaucus, NJ 07094 800-742-8086, www.panasonic.com/storage or E-mail vidalc@panasonic.com. In Canada, contact Panasonic Canada, Ambler Drive, Mississauga, Ontario L4W 2T3, Canada; 905/238-2254, FAX 905/238-2414, E-mail rkwong@panasonic.ca.

Lineo, Inc. is not a part or in any way legally affiliated with Panasonic Industrial Company. Panasonic Industrial Company assumes no responsibility for the performance of or customer satisfaction with Lineo's products. All company and/or product names are trademarks and/or registered trademarks of their respective manufacturers. Features, pricing, availability and specifications are subject to change without notice.