Regarding announcement of Embedix Asset acquisition by Metrowerks Corporation on December 17, 2002, announcement by Lineo Japan, Inc., 100% owned subsidiary of Embedix, Inc. is as follow.
Coinciding with the above asset acquisition, Lineo Japan, Inc. will spin-off from Embedix, Inc. by MBO, and will gain full independence from Embedix, Inc. Lineo Japan, Inc. has no capital affiliation with Motorola Inc., Metrowerks Corporation and their subsidiaries.

" Lineo" is originally named with strong aspiration for Linux to blaze a path to a new business field in the embedded device industry. Having our Engineering Center in Japan---the major market of the embedded Linux---Lineo Japan, Inc. will assume "Lineo" brand and ambition, and will continue to strives for the realization of coming ubiquitous network society by providing the best of embedded Linux solutions through our customers' products.

Details will be forthcoming shortly about the new corporation. We appreciate your continued support.


Yoshinobu Ushiyama
President and CEO
Lineo Japan, Inc.