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Alfred J. Stein, Former VLSI Technology Chairman & CEO, Joins ZF Linux Devices Board
Mr. Stein brings 40 years of semiconductor industry experience to Board of rapidly growing manufacturer of FailSafeô Linux PC-on-a-Chip

New York, NY, June 26, 2000

ZF Linux Devices, Inc. announced today that Alfred J. Stein has joined the company as a member of its Board of Directors.

"The unparalleled semiconductor industry experience that Mr. Stein brings to ZF Linux Devices will be invaluable as we transition to become a 'fabless' semiconductor company," said David Feldman, ZF Linux Devices CEO and founder. "His extensive knowledge of the high technology market and far-reaching industry network will help us to quickly capture the vast market for Linux devices incorporating our FailSafe MachZ PC-on-a-Chip."

Alfred J. Stein, 67, served as Chairman of the Board and Chief Executive Officer of VLSI Technology, Inc. from 1982 until its acquisition by Royal Philips Electronics in June of 1999. During his tenure with VLSI, the company evolved from a venture capital funded start-up to a publicly traded corporation (NASDAQ: VLSI) with 1998 revenues in excess of $700M, and with 2,500 employees in more than 25 locations around the world.

For more than 40 years, Mr. Stein has played a significant role in the development of the semiconductor industry, including senior management positions at both Texas Instruments and Motorola.

Mr. Stein has served on the Board of Directors for Applied Materials, Tandy Corporation, and Qume Corporation. He also was on the board of the Semiconductor Industry Association (SIA), where he served as Chairman for 1997, The Technology Network (TechNet), and St. Mary's University of Texas.

"The technology ZF Linux Devices has developed truly represents a paradigm shift in the way PC functionality will be incorporated into the millions of non-desktop computing appliances we will see in the future," said Mr. Stein. He added, "The technology represents a new price point and the crash-immune reliability required for products that will be connected to the Internet."

About The ZF MachZô
The ultra-low power MachZ is the only fully implemented PC-on-a-Chip that runs all x86 code natively and boots autonomously on application of power. It is also the only processor bundled with a full suite of embedded software including Phoenix BIOS and Linux or WindRiver's VxWorks operating systems. ZF's patented FailSafe Bootô feature makes it the only embedded processor that allows upgrades over the Internet eliminating the possibility of irrecoverable crashes. It is the only device capable of booting on power-up even if all external system software has been corrupted or is inaccessible.

The MachZ integrates an unequaled set of traditional PC hardware features including PCI, ISA and Access (I2C) buses, serial and parallel I/O, floppy and hard disk controllers. It also contains a host of patented features specifically created to solve the problems faced by designers of OEM products. With this device, ZF Linux Devices brings to market the most feature rich X86 PC-on-a-Chip ever introduced.

About ZF Linux Devices
ZF Linux Devices, Inc. pioneered FailSafe systems in embedded applications. Its products are the most highly integrated, PC-compatible control modules in the embedded systems market. They include full motherboard hardware and software functionality.

ZF Linux Devices Corporate Headquarters: 1052 Elwell Court, Palo Alto, CA 94303 USA … Toll Free: 1.800.683.5943 … Direct: 650.965.3800 … Fax: 650-965-4050 … E-mail: info@zflinux.com … Web: www.zflinux.com | European Headquarters: 30 Rue du Morvan, Silic 558, 94643 Rungis, CËdex, France … Tel: 33.(O)141.80.0410 | Fax: 33.(0)141.80.0411 | South American Sales Office: Prometeo 3036, Buenas Aires, Argentina … Tel/Fax: +54.1.544.4033