ALAMEDA, Calif., May 30, 2001 - Wind River Systems, Inc. (Nasdaq:WIND), a leading provider of software and services for connected smart devices, today announced the appointment of Steve Kennedy as vice president of worldwide sales and marketing. In this new position, Kennedy will be responsible for directing Wind River's sales efforts in North America, Europe the Middle East, and Asia Pacific. In addition, Kennedy will direct corporate communications globally. Wind River's direct sales force accounts for about 700 sales and field engineers, while worldwide corporate marketing for Wind River totals nearly 35 professionals.

"We are happy to welcome Steve to Wind River," said Tom St. Dennis, president and chief executive officer for Wind River. "Steve brings to Wind River the valuable experience of building a cohesive sales and marketing organization. We saw the importance of creating this position to help Wind River strengthen our position as a global strategic supplier. I look to Steve to lead our field sales into new territories, deepen Wind River's relationships with new and existing customers, while growing the Wind River brand name."

"I am excited to have the opportunity to work with an organization that markets truly innovative products and services," said Steve Kennedy, vice president of worldwide sales and marketing for Wind River. "It is the responsibility of the Wind River sales and marketing team to educate our customers, both new and existing, on our suite of complete solution-level products. Because we offer a complete development environment, from hardware bring-up, to development tools, and a variety of operating systems, we have an exceptional market opportunity ahead of us. We clearly have the necessary elements for strong growth, an exceptional management team, strong customer relationships, and dedication to technical excellence."

Kennedy joins Wind River with an established background in sales and marketing. Prior to joining Wind River, he was senior vice president worldwide sales and marketing at SONICblue Corporation from 1999 to the present. Kennedy also spent 10 years at Quantum Corporation, where he most recently served as the executive vice president worldwide sales and marketing. While at Quantum, Kennedy was an integral part of the company's sales growth, which went from $200 million when he started to $5.9 billion when he left the company. Kennedy holds a B.A. in Business Studies from Portsmouth University, Portsmouth, England.

About Wind River
Wind River is a worldwide leader in embedded software and services for creating connected smart devices. Wind River provides software development tools, real-time operating systems, and advanced connectivity for use in products throughout the Internet, telecommunications and data communications, digital imaging, digital consumer electronics, networking, medical, computer peripherals, automotive, industrial automation and control, and aerospace/defense markets. Wind River is How Smart Things Think™. Founded in 1983, Wind River is headquartered in Alameda, California, with operations in sixteen countries worldwide.

Wind River Systems, the Wind River Systems logo, and How Smart Things Think are registered trademarks of Wind River Systems.

Contact Information
Jessica Miller
Global Corporate Communications

New Orleans, La. (Smart Network Developers Forum) May 22, 2001 - Wind River Systems, Inc. (Nasdaq:WIND), a leading provider of software and services for connected smart devices, today introduced a series of software extensions for its VxWorks® AE real-time operating system (RTOS), collectively known as Foundation HA, that are tightly integrated with Motorola Inc.'s (NYSE: MOT) CompactPCI®-based high availability (HA) hardware platforms for embedded systems that require the utmost levels of uptime. Wind River and Motorola Computer Group (MCG) collaborated to jointly develop the integrated hardware/software solution, which enables HA features essential for service-critical Internet and telecom equipment and data-critical systems that must guarantee reliable handling of information and continuous service availability.

In today's competitive telecommunications industry, the demand for high availability systems is driven by network operators and their customers´ expectation that the services they provide are constantly up and running. An important measure of this availability is system uptime, with such systems often requiring an uptime of 99.999 (five nines) percent, including both planned and unplanned outages. To achieve five nines availability amid pressing time-to-market requirements, developers of HA systems are turning to commercial "off-the shelf" solutions that take advantage of industry standards and volume drivers. One such standard is CompactPCI systems, which allow a number of standardized single board computers to communicate over a common backplane while providing a means for redundant hardware resources to accommodate partial system failure.

Wind River's Foundation HA software extensions are tightly integrated with MCG's CPX8216 CompactPCI and PowerPC"! MPC750-based system hardware platform. These software extensions enable vendors to create HA applications capable of five nines availability as quickly as possible, thus minimizing loss of service, customers and market share. Building on Wind River's highly reliable VxWorks AE RTOS, the Foundation HA extensions provide specific HA features that allow the system to recover from failures in the underlying environment through fault detection, diagnosis, isolation, recovery and repair. Features provided by Foundation HA to achieve this system behavior include an alarm and fault management system, I/O hot swap and CPU failover capabilities.

"To get to market quickly with an HA solution, developers need a development framework that brings together the selected carrier-grade, standards-based hardware platform with an integrated software solution with the features necessary to develop a five-nines solution," said Charles deTranaltes, senior product manager, Motorola Computer Group telecommunications business unit. "Our strong relationship with Wind River has resulted in a HA solution that helps ensure reliability, availability and serviceability for the global communications industry and their end customers. Later this year, Motorola plans to extend Foundation HA functionality by porting the Motorola's Advanced High Availability software to the VxWorks AE operating system and Foundation HA extensions."

"In the telecommunications sector, vendors can easily calculate how much money they are losing per second when their systems go down," said John Fogelin, vice president of Wind River's Platforms business unit. "By combining efforts with MCG to deliver an integrated HA hardware and software solution, our customers are able to get to market as quickly as possible with five nines HA systems capable of managing partial system failures." Wind River's Foundation HA extensions are comprised of a number of software management components. These include an object management system (OMS) used to describe a system in a hierarchical fashion as a series of managed objects, an alarm management system that works in conjunction with the OMS to provide fault notification to an alarm framework, and a device management system that allows devices to be added, removed and reconfigured while the system is running. Other key benefits include:

I/O Hot Swap - Allows for the physical removal and replacement of peripheral I/O while the redundant peripheral I/O cards that are providing service remain active.
CPU Failover - Enables the most critical piece of computer hardware, the CPUs managing the bus, to fail partially or entirely without disabling the system as a whole.
Platform Abstraction - Permits usability of Foundation HA across a variety of hardware platforms, including different types of chassis and non-compactPCI-based systems
Motorola's CPX8000 family of CompactPCI systems is designed for critical telecom infrastructure applications that need to meet 99.999% availability. CPX8000 systems have built-in redundancy for active system components - including system-slot CPU boards - that enables active modules to be exchanged for repair or upgrade while the system continues to operate.

Product Availability
The Foundation HA extensions for VxWorks AE are currently in beta and will be available for customer shipment this summer, supporting the PowerPC and Intel® Pentium®, Pentium II, and Pentium III target microprocessor families. The VxWorks AE RTOS is a component of Wind River's Tornado® AE development platform and supports Windows"! NTTM, 2000 Professional, Solaris 2.7 / 2.8 and Red Hat® Linux 6.x host environments. The Foundation HA extensions and VxWorks AE RTOS will additionally be supporting CompactPCI chassis other than Motorola's as well as non-CompactPCI hardware suitable for HA designs as new industry standards come to market.

About Wind River
Wind River is a worldwide leader in embedded software. Wind River provides software development tools, real-time operating systems, and advanced connectivity for use in products throughout the Internet, telecommunications and data communications, digital imaging, digital consumer electronics, networking, medical, computer peripherals, automotive, industrial automation and control, and aerospace/defense markets. Wind River is HOW SMART THINGS THINK"!. Founded in 1983, Wind River is headquartered in Alameda, California, with operations in sixteen countries worldwide.

Wind River Systems, the Wind River Systems logo, VxWorks , and Tornado are registered trademarks of Wind River Systems, Inc. Other names are registered trademarks or trademarks of the respective companies or organizations. MOTOROLA, the Stylized M Logo and all other trademarks indicated as such herein are trademarks of Motorola, Inc. Reg. U.S. Pat. & Tm. Off.

Contact Information
Jessica Miller
Global Corporate Communications

ALAMEDA, Calif., May 21, 2001 - Wind River Systems, Inc. (Nasdaq:WIND), a leading provider of software and services for connected smart devices, today announced the appointment of Michikazu Fujiyoshi as president of Wind River Japan. Fujiyoshi will serve on Wind River's executive staff and be responsible for field operations, including all sales and service activities in Japan. As the new president of Wind River Japan offices, Fujiyoshi will also be responsible for developing the organization that will take Wind River to the next level of business success in Japan.

"Wind River is pleased to welcome Michikazu Fujiyoshi as president of Wind River Japan," said Tom St. Dennis, president and chief executive officer for Wind River. "We are confident that Fujiyoshi-san will build on our consistently strong results in Japan." Wind River's Japanese operations continued to perform well in the Q1 FY02, and the company believes Japan represents a market with significant growth opportunities.

"I look forward to applying my experience in leadership with this successful group at Wind River Japan and further extending Wind River's presence in this growing market," commented Michikazu Fujiyoshi. "The combination of Wind River's leading technology capabilities, as well as its already significant customer and partner base provide the ideal fuel for accelerated growth."

Fujiyoshi joins Wind River after 19 years with Intel Japan. Most recently, he was the regional sales manager for Intel's Internet & On-Line Services Division. He was responsible for successfully launching this new division, including its Data Center and Data Hosting offerings. Previously, Fujiyoshi was general manager of Intel's Networking and Reseller Channel business group. He was also regional sales manager of Intel's microprocessor sales group. Under his direction, this multi-billion-dollar group grew revenue by 100% in two years. He began his career in 1974 at Burroughs Japan as a field engineer. Fujiyoshi holds a B.S. in science and engineering from Ritsumeikan University in Kyoto.

About Wind River
Wind River is a worldwide leader in embedded software and services for creating connected smart devices. Wind River provides software development tools, real-time operating systems, and advanced connectivity for use in products throughout the Internet, telecommunications and data communications, digital imaging, digital consumer electronics, networking, medical, computer peripherals, automotive, industrial automation and control, and aerospace/defense markets. Wind River is How Smart Things Think™. Founded in 1983, Wind River is headquartered in Alameda, California, with operations in sixteen countries worldwide.

Contact Information
Jessica Miller
Global Corporate Communications

New York, N.Y. /ALAMEDA Calif. - May 15, 2001 - Fine Point Technologies, Inc. and Wind River Systems, Inc (Nasdaq: WIND) today announced that Fine Point Technologies, Inc. has become a value-added reseller of Wind River products by integrating Fine Point Technologies, Inc.'s Broadband Deployment Solution with Wind River's WinPoET™/MacPoET™ software. Through this agreement, Fine Point Technologies, Inc. will provide a complete end-to-end broadband deployment solution that includes end-user pre-qualification, service activation, subscriber management and value-added services, thereby reducing the DSL deployment bottleneck.

Under the terms of the deal, Fine Point Technologies, Inc. will extend the functionality of Wind River's industry leading client-based PPP over Ethernet (PPPoE) software solution to include value-added features along with bundled Internet service deployment technologies. Fine Point Technologies, Inc. will deliver broadband service providers a low-cost solution to speed their DSL deployment process and ensure higher deployment success rates.

The solution is designed to eliminate the need for an on-site technician (truck roll) to install/deploy DSL service, which has proven to be the bottleneck in the success of DSL in the industry today. This solution not only helps ensure a higher success rate, but also enables the service provider to deploy value-added services such as content, messaging, and security to their users.

"Wind River's WinPoET/MacPoET software has been the leading choice among broadband service providers worldwide for the user management capabilities that it provides. Now we have been able to bundle the deployment technologies that we have developed with WinPoET/MacPoET software to provide service providers with a complete deployment solution that will greatly increase deployment success and reduce the need for technical support," said John O´Keefe, president and chief executive officer of Fine Point Technologies, Inc.. "This new offering will revolutionize the suffering DSL market and help reduce the service providers´ costs."

David Fraser, vice president and general manager of Wind River's Networks, business unit added, "Wind River is pleased to be able to expand our value-added reseller program with industry leaders such as Fine Point Technologies, Inc.. Wind River's breadth and depth of enabling software technology expertise, combined with the power of Fine Point Technologies, Inc.'s robust deployment solutions, will provide an ideal solution for the telecom industry."

About Wind River
Wind River is a worldwide leader in embedded software and services for creating connected smart devices. Wind River provides software development tools, real-time operating systems, and advanced connectivity for use in products throughout the Internet, telecommunications and data communications, digital imaging, digital consumer electronics, networking, medical, computer peripherals, automotive, industrial automation and control, and aerospace/defense markets. Wind River is How Smart Things Think™. Founded in 1983, Wind River is headquartered in Alameda, California, with operations in sixteen countries worldwide.

Wind River Systems and the Wind River Systems logos, WinPoET™/MacPoET are registered trademarks of Wind River Systems, Inc. All other registered trademarks or trademarks are property of their respective owners.

Contact Information
Jessica Miller
Global Corporate Communications

ALAMEDA, Calif., May 14, 2001 - Wind River Systems, Inc. (Nasdaq: WIND), a leading provider of software and services for smart connected devices, today announced that it has been selected as a Networking Solutions

Center for Intel Corporation to help accelerate and optimize the development of networked devices. The initial focus will be on the Intel® IXP1200 Network Processor, but will expand in the future to include other processors from Intel. This center will develop projects based on Wind River and Intel technology for original equipment manufacturers in the telecommunications market segment. The new networking-focused development team expands Wind River's existing microcode development efforts.

A key offering from the center will be the development, customization, and integration of microcode for Intel's IXP1200 Network Processor, enabling the creation of a wide range of highly efficient switching, routing, and protocol translation functions that complement and extend the native code networking stack of communications products. The center will also provide porting and customization of vertically tailored Wind River products, including Tornado® for Managed Switches and Tornado for Home Gateways, to Intel networking processors.

"Having Wind River as a solution center for networked devices will help Intel offer a more complete service to its semiconductor customers and system integrators," said Doug Davis, general manager of Intel's Access and Switching Processor Division. "Intel customers can now take advantage of Wind River's expertise to get their products to market quicker, with higher performance, and with a wider range of features."

"As part of the microcode development center strategy, Wind River engineers focus on markets where our understanding of advanced technologies, such as network processor microcode, is imperative for success," said Kamran Sokanvari, vice president of global operations and service for Wind River. "Intel's network processor product line is quickly becoming a strong platform for networking-focused developers making innovative products. This new agreement leads us into exciting areas of networked device design and greatly expands our ability to provide a range of solutions based on Intel's networking technology."

"Wind River's services capabilities were instrumental in the development of our IXP1200-based video routing platform," said Alan Remen, vice president of corporate development at Path 1 Network Technologies, Inc. "Using a team combining both hardware and software expertise on this type of network processor helped us to verify key aspects of the solutions architecture in a very short time-scale, and to support compelling demonstrations at a key trade show. We are pleased to see an expansion of their microcode development center capabilities."

About Wind River
Wind River is a worldwide leader in embedded software and services for creating connected smart devices. Wind River provides software development tools, real-time operating systems, and advanced connectivity for use in products throughout the Internet, telecommunications and data communications, digital imaging, digital consumer electronics, networking, medical, computer peripherals, automotive, industrial automation and control, and aerospace/defense markets. Wind River is How Smart Things Think™. Founded in 1983, Wind River is headquartered in Alameda, California, with operations in sixteen countries worldwide.

Wind River Systems, the Wind River Systems logo, and Tornado, are registered trademarks and How Smart Things Think is a trademark of Wind River Systems, Inc. All other names mentioned are trademarks, registered trademarks or service marks of their respective companies.

Contact Information
Jessica Miller
Global Corporate Communications

ALAMEDA, Calif., May 9, 2001. — Wind River Systems, Inc. (Nasdaq:WIND), a leading provider of software and services for connected smart devices, today announced the addition of the Graphics Prototyper technology to Wind River's Tornado® Prototyper Plus family that is available free from the Web (expired link). The Graphics Prototyper simulator software allows developers to prototype embedded graphical applications in a no-risk manner, enabling easier development of product-differentiating features such as graphical user interfaces (GUIs) in consumer and other competitive vertical markets. (See Aug. 22, 2000, "Wind River Makes it Easy for Embedded Developers to Prototype Applications, Learn Embedded Technology with Free Tools" press release.)

"As pervasive computing via smart devices keeps growing, there is a real need for a product that helps developers learn and experiment with embedded graphical applications. For instance, Internet appliances, one vertical market that uses embedded graphical user interfaces, is expected to grow over 40% with total sales increasing from $219 million in 2000 to $1.3 billion in 2005 (Cahners In-Stat)," said Curt Schacker, vice president of marketing and corporate development for Wind River. "The only way to compete is to cost-effectively differentiate your product."

"Even without the graphics component, over 9,500 developers have already used Tornado Prototyper," Schacker added. "With the ability to upload and download code, developers can use the Graphics Prototyper to share great new proof of concept smart device designs with original equipment manufacturers without the traditional barriers to entering the embedded software development field."

Through the Graphics Prototyper, developers will have access to the Tornado integrated development environment, a simulation of the VxWorks® embedded real-time operating system for Solaris and Windows, and the WindView™ visualization tool. Graphics Prototyper also includes WindML™, which enables developers to write graphical applications for Wind River's Zinc™ graphics application framework and execute them on the VxWorks simulator, VxSim™.

About Wind River
Wind River is a worldwide leader in embedded software and services for creating connected smart devices. Wind River provides software development tools, real-time operating systems, and advanced connectivity for use in products throughout the Internet, telecommunications and data communications, digital imaging, digital consumer electronics, networking, medical, computer peripherals, automotive, industrial automation and control, and aerospace/defense markets. Wind River is How Smart Things Think™. Founded in 1983, Wind River is headquartered in Alameda, California, with operations in sixteen countries worldwide.

Wind River Systems, the Wind River Systems logo, Tornado, and VxWorks are registered trademarks, and WindView, WindML, Zinc, VxSim, and HOW SMART THINGS THINK of Wind River Systems, Inc. All other names mentioned are trademarks, registered trademarks, or service marks of their respective companies.

Contact Information
Jessica Miller
Global Corporate Communications

Networld + Interop Conference, Las Vegas, Nev., - May 8, 2001 - Wind River Systems, Inc. (Nasdaq:WIND), a leading provider of software and services for connected smart devices, today announced beta availability of Tornado® for Intelligent Network Acceleration (TINA), the industry's first integrated software platform for the fast-growing LAN and storage networking markets. Using TINA, original equipment manufacturers (OEMs) can deliver dramatic performance improvements in their server and storage devices. By offloading network traffic to an intelligent network interface card (iNIC), TINA increases throughput rates in servers, and brings high performance to storage area networks (SANs) migrating from Fibre Channel to IP and Ethernet environments.

Networking speeds have been increasing by a factor of 10 every 2 years, outpacing improvements in microprocessor performance. With Gigabit Ethernet becoming common throughout the Internet infrastructure, server and storage devices have been greatly impacted by this increase. As they struggle to keep up with network demand, application performance steadily erodes, to the dismay of IT professionals charged with maintaining productive systems. TINA offers a solution to this dilemma by introducing a specialized architecture that offloads network processing to an intelligent network interface.

"Today's server and storage products grind to a halt at Gigabit speeds, and 10 Gigabit is right around the corner," said Dave Fraser, vice president and general manager of Wind River's Networks business unit.

The most common approach for dealing with this challenge is to purchase additional, more powerful servers, an extremely expensive solution that will only be exacerbated by current trends. In addition, IT departments will often buy multiple NICs per server, which quickly erodes application performance as the host CPU spends all of its cycles processing network requests.

"By offloading the TCP/IP stack with the TINA solution onto an intelligent NIC, servers are able to meet networking performance demands while sparing precious CPU cycles for applications, all in a very cost efficient manner," added Fraser. "Laboratory tests by Wind River have yielded Performance Efficiency Index results of twice that of currently available solutions using traditional NICs."Â Â The Performance Efficiency Index, originally developed by PC Week (now eWeek) in 1995, measures networking throughput relative to CPU utilization.

TINA is also an ideal solution for the SAN market where high performance networking at Gigabit speeds is a necessity. In particular, TINA enables more cost effective and interoperable IP and Ethernet technology to replace the current Fibre Channel transport in the data center. Additionally, TINA is an ideal platform for emerging IP-based storage technologies such as intelligent small computer system interface (iSCSI).

"Gigabit Ethernet forces a change in the way Ethernet has been used in the past," said Dan Tanner, Senior Analyst, Storage and Storage Management for the Aberdeen Group. "Implementing IP-based SANs is simple and cost-efficient. Wind River's software solution is the only one on the market today. It gives their customers a way to handle the dramatic changes that are taking place."

The need to increase network speeds is important for the server market as well. According to research firm IDC, Gigabit Ethernet end user revenues will grow at an annual rate of more than 100 percent through 2004, when they will overtake 100-Mbps Fast Ethernet as the dominant LAN switching technology.

"Intel® I/O Processors with the Intel XScale"! Microarchitecture provide the high performance platform necessary to build the next generation of intelligent storage and I/O applications. Tornado for Intelligent Network Acceleration is a perfect example of a tool that will help developers quickly build applications on top of the Intel XScale Microarchitecture using best of breed tools from industry leaders like Wind River," said Wendy Vittori, general manager of Intel's I/O products and bridges division. "TCP/IP off-load is rapidly emerging as a critical piece of the equation in the area of high-performance I/O applications."

About TINA
TINA is comprised of the Tornado integrated development environment, including the IxWorks"! real-time operating system (RTOS), which shares the same kernel and full application programming interface (API) as the VxWorks 5.4 RTOS, and is specifically designed for high-throughput I/O environments. TINA also includes a reference board based on the Intel® 80200 Processor with Intel XScale"! Microarchitecture. Additionally, TINA's APIs are exposed, which allows developers to write customized applications such as virtual private networks and firewalls. An application development kit will be made available later in the year to support third party software development.

About Wind River
Wind River is a worldwide leader in embedded software and services for creating connected smart devices. Wind River provides software development tools, real-time operating systems, and advanced connectivity for use in products throughout the Internet, telecommunications and data communications, digital imaging, digital consumer electronics, networking, medical, computer peripherals, automotive, industrial automation and control, and aerospace/defense markets. Wind River is How Smart Things Think"!. Founded in 1983, Wind River is headquartered in Alameda, California, with operations in sixteen countries worldwide.

Wind River Systems, the Wind River Systems logo, How Smart Things Think, Tornado, IxWorks, and VxWorks are registered trademarks of Wind River Systems, Inc. Intel and Intel XScale are trademarks or registered trademarks of the Intel corporation. All other names mentioned are trademarks, registered trademarks or service marks of their respective companies or organizations.

Contact Information
Jessica Miller
Global Corporate Communications

ALAMEDA, Calif. (BUSINESSWIRE) May 3, 2001 -- Wind River Systems, Inc. (Nasdaq:WIND), a leading provider of software and services for connected smart devices, announced today that the company has experienced a significant slowdown in near-term customer spending. The company expects revenue for the quarter to grow 18%-20% as compared with the first quarter of last year. Earnings for the first quarter, ended April 30, will be reported on May 17. Prior guidance for the quarter was 27% revenue growth over the same fiscal quarter last year. The company expects to report earnings per share in a range between 4-6 cents on a pro forma basis for the first quarter. Prior guidance had been 6 cents per share in the first quarter.

The company also announced cost control measures that include a reduction of the overall worldwide work force, organizational restructuring and additional measures focused on reducing operational expenses.

"The current business environment forced many of our customers, particularly those in North America, to delay their spending toward the end of the quarter. We are seeing customers postpone investments for new projects, which brings down their short-term spending in research and development," said Tom St. Dennis, President and Chief Executive Office of Wind River "In addition, orders for our professional services business decreased, as many customers reduced their expenditures in outside consulting services to preserve their internal workforces. As we have seen throughout the industry, our ability to forecast has been reduced by substantial changes in the way our customers are making purchasing decisions."

"We believe we are well positioned as a company to answer the increasing demands of our customers and remain confident in our long-term growth opportunities," said St. Dennis. "In the near-term, the challenging environment will most likely result in fiscal second quarter revenues below fiscal first quarter revenues. At this point, it is unclear when the environment will improve so we are acting responsibly to aggressively manage our cost structure while carefully maintaining our strong infrastructure and product investments."

Wind River will make both permanent and temporary adjustments to the company's business operations in order to optimize operating efficiency. The company plans to disclose specific estimates for cost savings and restructuring charges associated with these measures during a first quarter earnings conference call on May 17. Specific expense reduction measures will include:

• A reduction in the number of employees worldwide by 12%-15%, and the company will reduce costs associated with contractors and temporary workers.


• All executive officers will take a 10% pay cut.


• The company is making organizational changes to better align products, increase efficiencies and improve productivity overall.


• The company will close North America offices for one-week during July 4th holiday and also encourage employees to use accrued vacation on selected Fridays throughout the summer.

"These steps are necessary to ensure that we are able to continue our leadership position in the industry during these short-term challenges," said St. Dennis. "We remain confident in our business model, our growth strategies, our talented team and our overall long-term market opportunity. We will continue to focus on performance during these times to emerge as an even stronger end-to-end strategic supplier."

Conference Call
Management will host a conference call at 2:15 p.m. Pacific Time on May 3, 2001 to discuss this announcement. You may listen to the conference call by calling 800-863-4938 in the U.S. (706-634-7025 internationally). A replay will be available beginning at approximately 6:00 p.m. Pacific Time on May 3, 2001 through 11:59 p.m. on May 10, 2001. To listen to the replay, please call 800-642-1687 in the U.S. (706-645-9291 internationally) and enter the conference I.D. number 136899.

About Wind River
Wind River is a worldwide leader in embedded software and services for creating connected smart devices. Wind River provides software development tools, real-time operating systems, and advanced connectivity for use in products throughout the Internet, telecommunications and data communications, digital imaging, digital consumer electronics, networking, medical, computer peripherals, automotive, industrial automation and control, and aerospace/defense markets. Wind River is how smart things think. Founded in 1983, Wind River is headquartered in Alameda, California, with operations in sixteen countries worldwide.

Wind River Systems, the Wind River Systems logo, VxWorks, Tornado, Blue Thunder, StormPad and WindNet are trademarks or registered trademarks of Wind River Systems, Inc. All other names mentioned are trademarks, registered trademarks or service marks of their respective companies or organizations.

Contact Information
Jessica Miller
Global Corporate Communications

Alameda, Calif./Munich, Germany May 2, 2001 Infineon Technologies (DAX/NYSE: IFX), a leading supplier of communications integrated circuits, and Wind River Systems, Inc. (NASDAQ: WIND), a leading provider of software and services for connected smart devices, today announced a partnership to provide network system OEMs with fully managed Layer 2 switch solutions. Through a value-added reseller (VAR) agreement, Infineon will provide a turn-key solution for high performance, compact switches targeted at network applications for small-to-medium businesses, based on its 26 port AR2224 Ethernet switch-on-a-chip and Wind River Tornado® for Managed Switches (TMS) 2.0 embedded software.

Under the terms of the agreement, Infineon Technologies is authorized to directly license the Wind River software to its LAN switching customers. By providing OEMs with the necessary building blocks to create a complete switch including the AR2224 switch-on-a-chip, production reference designs, and the embedded TMS 2.0 software in binary form, Infineon offers a Layer 2 solution that reduces the customer's time-to-market and development costs while assuring quality and support from two of the industry's leading suppliers. The agreement reinforces Infineon's commitment to offer complete LAN switching solutions.

We believe that Layer 2 switches will be the largest growing segment of the 120 million port LAN market by 2003, said Daniel Wong, a vice president in Infineon's communications group and the general manager of the LAN Business Unit. By bundling the Wind River software with our switch-on-a-chip, we´re providing a very attractive and competitive solution to companies building systems for this high-growth market. One that will allow for a low cost, low-component count and low power implementation of managed switches for enterprise LAN and MDU/MTU applications.

Wind River is pleased to work with leading manufacturers of Ethernet switching devices like Infineon to integrate TMS 2.0 and provide OEMs with the necessary tools to rapidly develop highly functional and efficient Ethernet Switches, said Dave Fraser, vice president of general manager of Wind River's Networks business unit. Through the Wind River VAR agreement, customers can purchase directly from Infineon a best-in-class integrated Ethernet switching development solution including all the protocols and applications necessary to quickly build Ethernet switches and routers, simplifying the development process.

About the AR2224
The highly integrated AR2224 features 24 10/100 (FE) ports and two Gigabit (GE) ports and is designed to sustain full-duplex wire speed traffic on all ports simultaneously. The Gigabit links can be used as uplinks or for stacking. The chip also offers trunking capability, up to eight FE links or two 1G links can be aggregated together; multiple trunks per chip are supported.Â

About Tornado for Managed Switches
Wind River's Tornado for Managed Switches 2.0 combines the most complete suite of layer 2 and layer 3 protocols and applications with the Tornado integrated development environment (IDE) and the VxWorks® real-time operating system (RTOS). Fully integrated with Infineon's AR2224 Ethernet switch-on-a-chip, the TMS 2.0 software allows developers to address differentiating features instead of hardware/software compatibility and bring-up issues.

Availability
Infineon is among the first companies authorized to license TMS 2.0 directly to its customers. Part number AR2224-M can be used by system OEMs to order AR2224 plus TMS 2.0 embedded software in binary form. AR2224-M is priced at $80 in quantities of one thousand and will be available for customer shipment in June. A reference design using a 32-bit PowerPC® microcontroller with embedded TMS software is also available for customer evaluation. Reference designs supporting other 32-bit processors are in development.

About Wind River
Wind River is a worldwide leader in embedded software and services for creating connected smart devices. Wind River provides software development tools, real-time operating systems, and advanced connectivity for use in products throughout the Internet, telecommunications and data communications, digital imaging, digital consumer electronics, networking, medical, computer peripherals, automotive, industrial automation and control, and aerospace/defense markets. Wind River is How Smart Things Think"!. Founded in 1983, Wind River is headquartered in Alameda, California, with operations in sixteen countries worldwide.

Wind River Systems, the Wind River Systems Logo, Tornado, VxWorks and How Smart Things Think are registered trademarks or trademarks of Wind River Systems, Inc.

Contact Information
Jessica Miller
Global Corporate Communications