Virtio Receives $6 Million in Latest Round of Financing

CAMPBELL, CALIF., February 20, 2001---Virtio, the creator of Internet virtual prototyping platforms, today announced that it has received $6 million in its latest round of financing. The funds will be used to further the company?s overall corporate growth as well as ongoing platform development efforts.

Shay Ben-Chorin, Virtio president and CEO stated, "This latest round of financing enables us to move forward with our next critical phase of overall corporate growth. We believe that our ability to secure these funds during this economic climate is a testimony to the strength of our technology as well as our overall business vision.?

?This funding announcement along with the opening of our worldwide platform support operations in Scotland (see company press release dated February 20, 2001), sets the stage for several major milestones that we will be announcing in the near future,? continued Ben-Chorin.

This latest round of financing was led by BancBoston Ventures, Palo Alto, California. Florian Hunziker of BancBoston Ventures noted, ?Among the technology and business issues that are major driving forces within the high tech market sector, we see an increased emphasis on software development. This emphasis is reinforced by the key time-to-market factors of shortened product life cycles and compressed product design cycles. Virtio stands out as a company that is uniquely positioned to proactively address the crucial area of software development via its virtual prototyping environment. As a result, Virtio can be of significant value to any number of companies developing embedded systems products.?

Virtio closed its second round of funding on February 5th. In addition to BancBoston Ventures previous investors, Newbury Ventures, Polaris Ventures, and J.P. Morgan Partners also participated.

About Virtio
Virtio delivers an environment where embedded systems are evaluated, customized, and proliferated over the Internet. With its unique virtual prototyping technology, Virtio overcomes critical time-to-market barriers for both embedded system suppliers and developers. Virtual prototyping allows system designers to create a high-performance software model of a complete system - without the need for physical hardware. The technology is powerful and scaleable enough to model a complex embedded system and yet fast enough to execute production-quality software very early in the design cycle. Virtio is based in Campbell, Calif. Additional information about Virtio is available at www.virtio.com.

Virtio is a trademark of Virtio. All other brand or product names may be trademarks or registered trademarks of their respective companies and should be treated as such.

Editorial Contacts:

Kella Knack
KJ Communications, Inc.
650-508-0371
Kjcomk@cs.com

Larry Melling
Virtio
408-341-0844, ext. 328
larry@virtio.com