Wind River to Acquire BSDi Software Assets, Extending Development Platforms to Include Robust UNIX-based Operating Systems for Embedded Devices

ALAMEDA, Calif., April 4, 2001 - Wind River Systems, Inc. (Nasdaq:WIND), a leading provider of software and services for connected smart devices, today announced a definitive agreement to purchase the software assets of Berkeley Software Design, Inc. (BSDi), the world's first commercial supplier of BSD UNIX, an advanced operating system (OS) for the Internet. Under the agreement, Wind River will purchase the commercial version of the BSD UNIX-based OS (BSD/OS™) and development tools. Wind River will also support FreeBSD, a collaborative open source development effort, to advance BSD technologies. Financial details will not be disclosed. Wind River expects to close this transaction by late April 2001.

By integrating BSD into its current suite of end-to-end solutions, Wind River will be able to effectively address the needs of embedded customers who require a robust UNIX-based OS and access to development done on the portable OS interface for UNIX (POSIX). Market segments using BSD include Internet infrastructure, telecommunications and data communications infrastructure, and other such network-centric commercial systems.

"Developers are striving to design products with longer life cycles, shorter development cycles, and higher levels of functionality," said Jerry Fiddler, Wind River's chairman and co-founder. "BSD technology, which already runs the Internet's most highly trafficked sites as well as the mission-critical networked computing environments of many large corporations, is a great solution for an embedded UNIX platform. Wind River will be able to offer a full suite of solutions across the embedded spectrum."

"Today's announcement further expands Wind River's reach into the domain of Internet infrastructure that supports networked embedded devices," said Tom St. Dennis, Wind River's president and CEO. "We believe that BSD's business-friendly license will allow our customers to take advantage of a widely tested and deployed infrastructure OS while protecting their intellectual property as they make modifications to the BSD source code or extend the functionality of the kernel. Offering BSD technology allows our customers to continue differentiating themselves in a very competitive marketplace."

"Going forward as iXsytems, Inc., we will continue to offer our iXtreme server solutions based on BSD technologies, and we plan to use Wind River tools to develop additional offerings," said Gary J. Johnson, CEO of BSDi, which will become iXsystems, Inc., upon closing of the sale to Wind River. "We are pleased that Wind River, a company with focused OS expertise and extensive resources, will continue to advance BSD technologies as a superior platform for Internet infrastructure and embedded systems computing."

Rock-solid Foundation
BSD technology communicates reliably to millions of computers around the world using transmission control protocol/Internet protocol (TCP/IP), offering access to local- and wide-area networks. It includes all of the features necessary for network access, software delivery, and embedded systems development.

Derived from the University of California at Berkeley 4.4BSD releases with BSDi enhancements, the BSD/OS kernel is a fast, scalable, multitasking 32-bit client/server network platform with a small footprint, virtual memory capability, and memory protection. Its compact kernel, high performance, and enhanced networking capabilities make it ideal for the development and management of embedded network applications. Today, BSD/OS powers network firewall products, routers, Internet telephony applications, intelligent network devices, and point-of-sale systems.

Wind River will integrate BSD technologies with the company's Tornado® development tools platform, making it easier for developers to design complete systems from the lowest-level devices up to the infrastructure that manages those devices. Customers will also be able to leverage the entire Wind River technology, services, and partner value chain.

Joining Wind River as part of the agreement will be BSDi Chairman of the Board Dr. Marshall Kirk McKusick. Also joining Wind River will be former BSDi Vice President of Open-Source Technology and Chief Evangelist Jordan Hubbard, former BSDi Chief Technology Architect Michael Karels, and other BSD/OS- and FreeBSD-focused staff.

Commitment to Open Source
Wind River will continue to support the efforts of FreeBSD open-source software, working closely with the open-source community of developers. Wind River will provide operational and technical support, marketing, and funding for FreeBSD, and will continue to distribute the software free of charge through (the world's busiest FTP server) and as a shrink-wrap software product through retail outlets. Technical innovations in the commercial BSD/OS will continue to be used to advance the FreeBSD version, as well as develop new products for the FreeBSD Project.

"Wind River believes in the importance of collaborative efforts such as FreeBSD," said Jordan Hubbard, vice president of open-source technology and chief evangelist at BSDi. "Wind River's commitment is evident by the willingness to put financial, technical, and marketing support behind the FreeBSD Project. I look forward to continuing my efforts to develop and strengthen FreeBSD's position, as well as help facilitate ongoing innovative development and promotional efforts over the long term."

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 OSs, 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. This document contains "forward-looking" statements that involve risks and uncertainties that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements. For this purpose, any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Words such as "believes," "anticipates," "plans," "expects," "will," "would," "look forward," and similar expressions are intended to identify forward-looking statements. There are a number of important factors that could cause the results of Wind River or Bids to differ materially from those indicated by these forward-looking statements, including, among others, risks detailed in Wind River's most recent Form 10-K and other reports filed with the Securities and Exchange Commission. Additional factors that could cause or contribute to such differences include, but are not limited to, risks relating to the consummation of the contemplated acquisition transaction, including the risk that stockholder approval might not be obtained in a timely manner, or at all. In addition, statements in this press release relating to the expected benefits of the contemplated acquisition transaction are subject to risks relating to the timing and successful integration of the technologies of Wind River and BSDi, retention of key personnel, the ability to maintain or expand existing relationships between BSDi and its customers, unanticipated expenditures, changing relationships with customers and suppliers and other factors.

Contact Information
Jessica Miller
Global Corporate Communications