Press Release

October 10, 1999

10 October 1999 - Microware Systems Corporation (NASDAQ: MWAR) www.microware.com, unveiled its industry-leading real-time operating system, the first to offer MP3 embedded audio capabilities at the Embedded Systems Conference in San Jose, Calif., today. Microware's OS-9 and Java technologies coupled with Espial Group's Espial development tools and Internet Application Suite, and Xaudio MPEG technology create a complete software solution for developers in the fast growing embedded Internet enabled audio device market.

"The Internet audio market is growing at a phenomenal pace," said Bob Egner, marketing director at Microware. "It has been estimated that 1.5 million MP3 audio players will be sold this year, 3 million next year, and 7.8 million units in 2001. By the year 2005, industry analysts predict 30 million MP3 players will be sold making them more popular than cassette players. Developers who are currently working on advanced designs are building MP3 into embedded devices, now have a fast and robust MP3 engine available through Microware's OS-9 technology."

"Microware's OS-9 with MP3 is a perfect solution for developers who are building the MP3 Internet audio format into new embedded devices. Microware's complete package of operating system, networking, and now MP3 software provides a solid and reliable foundation for a host of next-generation Web-enabled audio devices," added Egner.

Software from Microware, Espial, and Xaudio, creates a total next-generation audio solution for developers who rely on Microware's OS-9 RTOS for application and device design. The modular architecture of OS-9 enables the implementation of Espial's development tools and Internet application suite and Xaudio software for the development of devices requiring advanced networking features.

Espial Espresso is the industry's only lightweight graphical user interface toolkit for embedded Java applications. It is ideal for developing applications for smart phones, set-top-boxes, hand-held mobile and other Internet applications.

"Espial Group's application and browsing technologies are a perfect fit for Microware's OS-9," said Jaison Dolvane, president of Espial Group Inc. "Microware's OS-9 provides Internet device developers a real advantage due to Microware's advanced Java technologies and track record of reducing development time for their customers."

"Xaudio, Espial, and Microware's OS-9 is poised to transform Internet enabled devices," said Gilles Boccon-Gibod, of Xaudio. "We realize MP3 capabilities are now a prerequisite for successful information and audio devices of the future. This powerful collection of software is set to transform the Internet devices market."

Xaudio, developed by MpegTV LLC in San Francisco is currently being licensed for use in audio devices, video games, and Internet audio devices. Recognized for its speed and robust qualities, it is a leader in the development of digital audio decoding, compression and networking.