LINDON, UTAH — Lineo, Inc. today announced that its Embedix Linux 1.0 operating system and Embedix Browser will serve as the software backbone of a new set-top system to be marketed by Bast, Inc., a leading provider of set-top system hardware. The systems will be installed in hotel rooms and apartment buildings throughout the United States, Europe, and Asia.

The device is claimed to be the first Internet appliance to provide hotel and apartment managers a low-cost, convenient way to give their customers easy access to the Internet from ordinary television sets via a broadband network maintained by the property owners. The initial build plan is for 50,000 systems, which are being priced at $285. Elitegroup Computing, the world's fourth largest motherboard manufacturer, will manufacture the systems.

Bryan Sparks, CEO of Lineo, said, “Hotels and apartment buildings are now installing high-speed Internet connectivity in rooms and apartments in order to serve their customers better. These Embedix-based set-top devices allow customers to take advantage of high-speed network connections without paying the high costs of traditional computer hardware.”

“This marks an exciting beginning in providing computing devices to customers as a solution rather than as a passive tool set,” said Chien Shih, vice president of Elitegroup. “Our hardware houses the Embedix Browser in such a compact package, our customers can easily enjoy the benefits of a low-cost, low- maintenance device in their own computing environment.”

Bob Pincus, president of Bast, Inc. added, “For consumers, having Internet access is quickly becoming an absolute necessity. Not everyone owns or travels with a laptop, but with these devices, customers can still send and receive e-mail and browse the Web. Embedix provided us the flexibility we needed to offer our customers an easy-to-use, low-cost tool to use the Web.”

About Lineo, Inc. (www.lineo.com )

Lineo, Inc. develops, markets and sells embedded Linux system software and applications that provide OEMs and consumers with simple, low-cost software for interacting with the Internet via embedded devices. Embedix is Lineo's line of embedded Linux software solutions. Embedix Linux adds the power, connectivity and stability of Linux to customized embedded devices. Embedix Browser is Lineo's micro Web browser designed to connect customers to the Internet via Internet appliances.

About Elitegroup Computing (www.ecsusa.com)

Headquartered in Taipei, Taiwan, Elitegroup offers comprehensive, advanced, and reliable solutions for today's computing markets.

About Bast, Inc. (www.bastinc.com)

Bast, Inc. develops, manufacturers and markets high speed, high quality, feature rich, Ethernet based, Internet Web browsing hardware with output display for TV. The hardware includes wireless keyboards and pointing devices that enable across-room operation. Primary markets served are hotels, major apartment complexes and financial institutions. Bast also provides an accompanying, web based, multi-user email program. Bast, a privately held company, is based in Sonoma, California.

 
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