TAT Capital Partners Join Expansion Round Funding of ZF Linux Devices
Introducing industry's lowest power real X86 System-on-a-Chip
Paris, France, June 5, 2000

TAT Capital Partners of Switzerland today announced its participation in the funding for ZF Linux Devices, Inc., the first company to provide a true X86 System-on-a-Chip with the Open Source Linux operating system. This round of funding raised $15 million and was led by Sands Brothers Venture Capital LLC of New York and included additional investments from National Semiconductor and Samsung, as well as individual angel investors.

The venture funding will be used for marketing and to begin volume production, against a backlog of orders, of the company's patented, crash-immune FailSafeô MachZ microprocessor chip. The company is also using the funds to develop a family of MachZ-based Internet appliances.

"We appreciate the support shown by TAT's investment in ZF Linux, since many of the leading OEM's that are our potential customers are based in Europe. TAT has a record of encouraging transatlantic growth opportunities and with our National Semiconductor partnership for chip manufacturing, ZF is ready to expand into these international markets," said David Feldman CEO of ZF Linux Devices, Inc.

"Based on ZF Linux's track-record of developing award-winning embedded controllers, TAT was excited to participate in financing the company's continued growth and development," said Mark Putney, General Partner of TAT Capital Partners, which has previously backed several investments in Silicon Valley. "The Linux operating system is rapidly gaining the acceptance of the electronics industry. We believe that ZF Linux has developed a world-beating chip that has the ability to greatly enhance existing products and become a key component of the huge market opportunity in the next generation of Internet-related devices. We think ZF Linux, with its MachZ chip and FailSafeô technology, is poised to take advantage of the need for reliable crash-immune products needed to build the Internet infrastructure," concluded Putney.

For the first time, the ultra-low power FailSafeô MachZ PC-on-a-Chip brings crash-immune PC functionality to a price point never before achieved, combined with an integration level that had previously been unattainable. Its high level of hardware and software integration means that the MachZ can reduce the time and costs to bring new products to market by more than 50%. Furthermore, in the event of system software corruption, its unique built-in FailSafe System permits crash-immune software downloads over the Internet.

"The MachZ chip was designed to be the enabling technology for the rapidly growing market for Internet devices, information appliances, and other products in the 'post-PC era'," said Feldman. "The MachZ's ability to operate as a fully functional computer on power-up even if all system software is corrupted makes this 1/2watt, 35mm (1.4 inch) square device the first true PC on a chip. This chip's capability will allow the creation of sub-$100 Internet access devices for the first time. Compared to other X86 processors operating at a typical 7-10watts, the MachZ's ‡-watt power requirement eliminates the need for cooling fans and gives products a degree of reliability that could not be achieved until now."

About ZF Linux Devices
ZF Linux is a provider of Open Source Linux operating system software and Open Architecture X86 hardware offering a unique systems design implementation spanning semiconductors to turnkey systems. Their FailSafeô MachZ PC-on-a-Chip represents a new paradigm in System-on-a-Chip technology. The company is creating a new standard for integrating X86 PC functionality and Linux into embedded systems, and its devices are currently being used by OEMs in a broad range of embedded applications, including telecommunications devices, manufacturing automation, and medical equipment. For more information about ZF Linux Devices, Inc., visit their web site at http://www.zflinux.com. The company is based in Palo Alto, California.

About TAT Capital Partners
TAT Capital Partners is a transatlantic venture firm investing in early stage and established companies in Europe and US. The focus is on technology based companies in selected electronic industries in particular in semiconductor products and equipment and medical devices companies. The active involvement of TAT Capital Partners helps companies to manage their growth and the transatlantic expansion to quickly reach a strong position in the market.

TAT Capital Partners has a team of industry experts with a broad industrial experience in the focused markets and acts according to both financial and entrepreneurial objectives.

TAT Capital Partners is headquartered in Switzerland with its US office in San Jose, California. For more information visit their website at http://www.tat.ch.