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Santa Barbara, CA. May 8, 2002 -- Green Hills Software, Inc., the world's fastest growing and now the second largest real-time operating system (RTOS) company, announced record sales, continued growth and profitability, major new products and significant new design wins for its INTEGRITY® RTOS in year-end results for 2001.

Green Hills Software's revenues for 2001 were $45 million, up 10% from 2000 in spite of the recession and in contrast to revenue declines at many of its competitors. This revenue increase was especially significant since it showed the broad customer base that Green Hills enjoys, spanning defense, automotive, consumer electronics, industrial automation and telecommunications. By comparison, Wind River Systems (Nasdaq: WIND) showed a 19.7% decline in revenues for their fiscal year ending in January 2002. According to Green Hills, Green Hills Software's increase, coupled with Wind River Systems' decline indicates a shift in customer buying from Wind River to Green Hills.

Operating earnings per share increased 42% to $0.27 in 2001 from $0.19 in 2000. Wind River Systems, in contrast, lost $0.05 per share in FY2002, down 110% from operating earnings of $0.52 per share the year earlier. This decline prompted Wind River to reduce their workforce during the year to less than 1,800 employees from 2,200 at the beginning of the year.

"2001 was tremendously successful," commented Dan O'Dowd, Green Hills Software's President and CEO. "Growth and profitability during a recession is a testament to our product strength and our operational management. It's easy to grow and make money in a surging economy, but in 2001, only the best companies could manage either one. Green Hills Software was able to achieve both."

In addition to revenue increase and earnings growth, Green Hills Software gained several key customer wins in 2001. Most notable among these was Lockheed Martin's selection of Green Hills Software's INTEGRITY RTOS for the F-35 Joint Strike Fighter program, the largest military procurement in history. Also significant contributors to Green Hills Software's 80% market share growth in real-time operating systems were new design wins and increased business from Hewlett-Packard, Lucent Technologies, Boeing, and Rockwell. Each of these wins was hard-fought and represents selection of Green Hills Software over Wind River Systems. This, coupled with Wind River's revenue decline, is evidence of widespread customer preference for Green Hills Software's products over the competition.

In 2001, Green Hills Software introduced major new revisions to its market-leading MULTI® Integrated Development Environment, EEMBC-leading Optimizing C/C++ compilers, and INTEGRITY RTOS. Each of these products contributed strongly to 2001 revenues and profitability. Also in 2001, the Green Hills Probe™ was introduced, marking the entry of Green Hills Software into the hardware debug-interface market as a complementary technology for its MULTI debugger.

Also in 2001, new joint corporate agreements were signed with Motorola and MIPS Technologies, Inc. (MTI). Both partnerships signified joint efforts to create the best possible products in support of each company's architectures.

More on Green Hills Software, Inc.

Founded in 1982, Green Hills Software, Inc. is the technology leader for real-time operating systems and software development tools for 32- and 64-bit embedded systems. Green Hills Software's royalty-free INTEGRITY® real-time operating system and the ThreadX real-time operating system, fully integrated with its market leading compilers and MULTI® Integrated Development Environment, provide a total development and run-time solution that addresses both deeply embedded and maximum-reliability applications.

Green Hills Software is headquartered in Santa Barbara, CA, with European headquarters in the United Kingdom. For more information on Green Hills Software products, call 805-965-6044, email sales@ghs.com or visit us on the web at www.ghs.com.

Green Hills Software, the Green Hills Software logo, and MULTI are registered trademarks, and INTEGRITY, EventAnalyzer and the Green Hills Probe are trademarks of Green Hills Software Inc.
 
All other trademarks (registered or otherwise) are the property of their respective companies.