From: Gordy Davies (gdavies@austin.metrowerks.com)
Subject: Metrowerks Embedded Strategy

In our mad scramble at Embedded Systems Conference West (which was a great
success for us), you may not have had access to the press releases we had
at the show and that were released to the Business Wire (23 of them!!)…
Below is the summary release…

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METROWERKS ROLLS OUT EMBEDDED STRATEGY
AT ESC WEST/97 IN SAN JOSE

CodeWarrior Support for Embedded Systems Development Greatly Expanded

SAN JOSE, California – Metrowerks Inc. (NASDAQ: MTWKF, TSE/ME:MWK)
announced this week at the Embedded Systems Conference West/1997 in San
Jose, greatly expanded CodeWarrior support for embedded software
development, with over 20 press announcements covering all aspects of the
embedded software development tools market.

Metrowerks divides the embedded systems market into three core markets: the
proprietary operating system market; the RTOS/Windows CE market; and the
embedded Java technology market.

“Our mission is clear. Metrowerks wants to be a leader in the growing
embedded tools market by providing the same low-cost, highly-optimizing
integrated tools to embedded programmers that we have been providing to
desktop programmers for years,” said Jean Belanger, Metrowerks Chairman and
CEO. “Our CodeWarrior all-in-one solution, a concept pioneered by
Metrowerks, will be the foundation upon which we build our embedded tools
business.”

The CodeWarrior all-in-one solution for embedded programmers comprises two
key components:

– CodeWarrior IDE, which is a totally integrated development
environment
common to all CodeWarrior embedded and desktop products. The CodeWarrior
IDE contains a complete set of programming tools, including class browsers,
editors, a state-of-the-art project manager which obsoletes “make” files,
two-machine debuggers which support both source-level and assembly-level
debugging, and debug formats that include DWARF (Debug With Arbitrary
Record Format), Motorola S-Records, BDM, and JTAG.

– CodeWarrior highly optimizing C, C++, Java and assembler
compilers, which feature support for a variety of microprocessors,
including 68K, PowerPC, x86 and MIPS. The CodeWarrior compilers and linkers
support a variety of proprietary operating system object formats as well as
industry standard formats such as ELF and Microsoft COFF.

At ESC West, Metrowerks announced support for additional microprocessors,
new CodeWarrior releases for the proprietary operating systems already
supported, support for new real-time operating systems, planned support for
Windows CE 2.0, and a number of additional selling and marketing
arrangements with other embedded tools vendors.

Additional CodeWarrior Microprocessor Support:

– Advanced RISC Machines (ARM) – Metrowerks announced that it will
support a new family of microprocessors, the ARM architecture tuned for
architecture 3 and 4, including the 7500E, the StrongARM, and
THUMB-enhanced ARM architectures. CodeWarrior for ARM will be available in
the second quarter of calendar 1998.

– Hitachi SuperH (SH) – Metrowerks announced that it will support a
new family of microprocessors, the Hitachi SuperH architecture. CodeWarrior
for SuperH Embedded Systems will be available in the second quarter of
calendar 1998. CodeWarrior for SuperH Embedded Systems will retail for
US$899

– MIPS16 – Metrowerks announced that it will support the new MIPS16
compressed RISC instruction set extensions to the MIPS instruction set. The
MIPS16 extensions allow for applications with smaller memory footprints.
CodeWarrior MIPS16-enabled compilers will be available in the second
quarter of calendar 1998. CodeWarrior for MIPS16 will be incorporated into
CodeWarrior for MIPS Embedded Systems which will retail for US$899

– MIPS – Metrowerks will be shipping in October 1997 CodeWarrior
for MIPS Embedded Systems with support for MIPS ISA levels I & II.
CodeWarrior for MIPS will retail for US$899

– NEC – Metrowerks will provide full support for the NEC VR4100,
VR4300 and VR5000 MIPS-based microprocessors. The first release of
CodeWarrior for NEC Embedded Systems will ship in the first quarter of
calendar 1998, and support for the
NEC V800 series of 32-bit microprocessors will be included in future
releases. CodeWarrior for NEC Embedded Systems will retail for US$899

– PowerPC – Metrowerks will be shipping its second release of
CodeWarrior for PowerPC Embedded Systems, targeting Motorola’s MPC821 and
MPC860 PowerPC embedded processors, in October 1997. CodeWarrior for
PowerPC Embedded Systems retails for US$899

Proprietary Operating System Market:

– Sony PlayStation – Metrowerks will begin shipping in October 1997
CodeWarrior for PlayStation Release 3, the latest version of CodeWarrior
programming tools for developing games for the Sony PlayStation game
console, and CodeWarrior for Net Yaroze, designed for hobbyist developers.
CodeWarrior for PlayStation retails for US$899 and CodeWarrior for Net
Yaroze retails for US$299.

RTOS/Windows CE Market:

– Accelerated Technology Incorporated – Metrowerks has agreed with
Accelerated Technology to build CodeWarrior support for the Nucleus
real-time operating system. The first release will target PowerPC embedded
microprocessors, with subsequent releases targeting other embedded
microprocessors supported by Metrowerks. CodeWarrior for Nucleus on PowerPC
will ship in October 1997 and will retail for US$899.

– Embedded Systems Products – Metrowerks has agreed with Embedded
Systems Products to build CodeWarrior support for ESP’s RTXC and RTEK
real-time
kernels. The first release will target PowerPC embedded microprocessors,
with subsequent releases targeting other embedded microprocessors supported
by Metrowerks. CodeWarrior for RTXC/RTEK on PowerPC will retail for US$899.

– JMI Software Systems – Metrowerks has agreed with JMI Software
Systems
Inc. to build CodeWarrior support for the JMI C EXECUTIVE real-time kernel.
The first release will target PowerPC embedded microprocessors, with
subsequent releases targeting other embedded microprocessors supported by
Metrowerks. CodeWarrior for
C Exec on PowerPC will retail for US$899.

– ITRON – Metrowerks is joining the ITRON Technical Committee and
establishing an ITRON porting lab in the United States. Metrowerks will
also license MetroTRK to ITRON members.

– Microware – Metrowerks will ship CodeWarrior support for the OS-9
real-time operating system in October, 1997. The first release will target
68K and PowerPC embedded microprocessors, with subsequent releases
targeting other embedded microprocessors supported by Metrowerks.
CodeWarrior for OS-9 on 68K and PowerPC will retail for US$899

– Precise Software Technologies – Metrowerks has agreed with
Precise Software Technologies to build CodeWarrior support for the
Precise/MQX real-time operating system on PowerPC embedded microprocessors.
The first release will target PowerPC embedded microprocessors, with
subsequent releases targeting other embedded microprocessors supported by
Metrowerks. CodeWarrior for Precise/MQX on PowerPC will retail for US$899.

– Tacit Software – Metrowerks has agreed with Tacit Software to
license Metrowerks’ new Target Resident Kernel (MetroTRK) to Tacit Software
for integration with Tacit OS running on Motorola’s MC68328 Dragonball
microprocessor. Tacit OS support will target the Dragonball embedded
microprocessor, with subsequent support targeting other embedded
microprocessors supported by Metrowerks.

– Microsoft – Metrowerks’ CodeWarrior for Windows CE 2.0, which is
expected to ship the first quarter of calendar 1998, will provide complete
support for Windows CE 2.0. The initial release will support Windows CE 2.0
running on PowerPC, x86, and MIPS microprocessors. Support for Windows CE
2.0 running on ARM and Hitachi SuperH microprocessors will be included in a
subsequent release.

Embedded Java Technology Market:

– SUN Microsystems – Metrowerks and SUN Microsystems have signed an
agreement whereby Metrowerks will bring its CodeWarrior IDE and CodeWarrior
Java tools to be hosted on Sun’s Solaris-based workstations. CodeWarrior
for Java on Solaris is expected to be available in the second quarter of
calendar 1998.

– Advanced RISC Machines – Metrowerks and Advanced RISC Machines
have signed an agreement whereby Metrowerks will develop a specialized Java
Just-in-Time (JIT) compiler for use with ARM microprocessors. Advanced RISC
Machines will act as the master licensor for this technology to it’s
business partners for use with Java Virtual Machines running on ARM
architectures.

Selling and Marketing Arrangements:

– PHYTEC – Metrowerks will offer, in November of this year, full
CodeWarrior support for the PHYTEC miniMODUL-PowerPC 505, a Single Board
Computer in a credit card-sized footprint.

– Marubun Corporation and Tokyo Electron – Metrowerks and Marubun
Corporation and Tokyo Electron Limited, Japan, announced plans to bundle
CodeWarrior for Embedded PowerPC tools with Motorola’s MBX board for
packaged kit sales in the Japanese market.

– Sophia Systems – Metrowerks and Sophia Systems, Japan, announced
plans to
add CodeWarrior support for Sophia Systems’ in-circuit emulator for PowerPC
860/821.

– Yokogawa Digital Computer – Metrowerks and Yokogawa Digital
Computer announced plans to bundle CodeWarrior for PowerPC Embedded Systems
with Yokogawa Digital Computer’s in-circuit emulators for PowerPC 860/821 .

– Academic Embedded Tools – Metrowerks is heavily committed to
providing the academic community with world-class embedded software
development tools, offering single-user or multiple-user Academic Lab Packs
for Embedded Systems products to college and university computer science
programs at significantly reduced prices.

Metrowerks Resources

With over 100 software engineers working on CodeWarrior, Metrowerks invests
35% of the company’s revenues in R&D. Metrowerks has the resources to
create state-of-the-art development tools for embedded programmers. With a
fully developed IDE already available for desktop application development,
and currently used by over 100,000 registered users in 75 countries,
Metrowerks’ CodeWarrior IDE development costs can be amortized over a
relatively larger number of users. This competitive advantage allows
Metrowerks to sell CodeWarrior embedded tools at the ground-breaking price
of under $1,000 per seat.

Conclusion

By combining superior pricing, strategic partnerships, and world class
tools of unparalleled flexibility, Metrowerks is providing the embedded
developer with the most comprehensive, high quality, low cost developer
tools in the embedded market.

Note to editors: for complete copies of the releases summarized above,
please visit the Metrowerks web site at www.metrowerks.com/news. Or contact
Gordy Davies, (512) 873-4797, gdavies@metrowerks.com or Maria Krinsky,
(512) 873-4719, mkrinsky@metrowerks.com.

###

Metrowerks, the Metrowerks logo and CodeWarrior are registered trademarks
of Metrowerks Inc. All other company and product names may be registered
trademarks or trademarks of their respective companies/holders, and are
hereby recognized.

Statements in this press release are forward looking statements that
involve risks and uncertainties, including successful and timely
development of the product and customer acceptance of the product.

-30-

Gordy Davies – Media Relations
Metrowerks Inc.
2201 Donley Drive, Suite 310
Austin, TX 78758
V: 512/873-4797 F: 512/873-4900
gdavies@metrowerks.com
http://www.metrowerks.com