Green Hills Software Announces End of Embedded Industry Recession

Record 2009 Revenues and Profits Confirm Leadership in Independent Embedded Software Solutions Market

Santa Barbara, CA — February 9, 2010—Green Hills Software, Inc., the largest independent vendor of embedded software solutions, today announced it achieved record revenues and earnings for 2009, signaling an end to the embedded industry recession. Green Hills Software remains the world's most profitable embedded software company, having achieved 27 consecutive profitable years.

Green Hills Software's Q4 2009 sales increased by nearly 40% over the prior quarter. "The market for embedded software has rebounded strongly from its slumber between Q3 2008 and Q3 2009," commented Dan O’Dowd, chief executive officer, Green Hills Software. "Many of our customers and partners share this observation based on their own improved business prospects. There is no doubt that the embedded recession is over."

Wind River’s Exit Strategy

Q4 2009 was the first full quarter in which Green Hills became the independent embedded software solutions market leader following Wind River’s absorption by Intel Corporation. Industry expert Jack Ganssle opined in June, "I find it inconceivable that Intel would want to support other vendors' chips, so suspect that over time VxWorks support will be pruned to just the x86." (URL: http://embedded.com/columns/technicalinsights/217702204). Similar sentiment abounds throughout the industry. O’Dowd says, "Customers require support for heterogeneous processors across classes and generations of designs, and developers value our ability to support their hardware choices with an open and consistent software ecosystem. With the termination of its independence, Wind River has lost credibility as a viable supplier on non-Intel architectures."

Also contributing to Green Hills Software’s financial results is the company’s strong entrance into the enterprise market through its subsidiary INTEGRITY Global Security (IGS), which recently signed a global alliance with Dell to sell and support INTEGRITY-178B in government enterprises. Dell will offer government customers a secure, simplified desktop consolidation solution leveraging the INTEGRITY separation kernel technology. Michael Liacko, executive vice president of IGS, states, "This alliance provides INTEGRITY Global Security the ability to support customers of any size on a global basis. This solution will save customers money, simplify their operations and deliver the highest level of security." View the Dell announcement at: http://content.dell.com/us/en/corp/d/press-releases/2010-02-02-dell-alliance-integrity.aspx

Strong earnings are enabling Green Hills to extend its leadership through investments in R&D and its workforce. "Demand and interest in our INTEGRITY RTOS is at an all-time high, and we see extraordinary opportunities helping customers manage the complexity and challenge of building high reliability and top-performing electronic products in the least amount of time and lowest possible cost," said David Chandler, senior vice president of sales for Green Hills. "We’re looking for good people to help us capitalize on the economic recovery and emerging applications in networking, mobile, medical, industrial, automotive, smart grid, enterprise IT security, and other markets that benefit from our technology, customer service, and corporate stability."

About Green Hills Software

Founded in 1982, Green Hills Software, Inc. is the largest independent vendor of embedded development solutions. In 2008, the Green Hills INTEGRITY-178B RTOS was the first and only operating system to be certified by the NSA to EAL6+ High Robustness, the highest level of security ever achieved for any software product. Our open architecture integrated development solutions address deeply embedded, absolute security and high-reliability applications for the military/avionics, medical, industrial, automotive, networking, consumer and other markets that demand industry-certified solutions. Green Hills Software is headquartered in Santa Barbara, CA, with European headquarters in the United Kingdom. Visit Green Hills Software at www.ghs.com.

About INTEGRITY Global Security, LLC

INTEGRITY Global Security, a wholly owned subsidiary of Green Hills Software, is the leading expert in providing the highest-certified IT security solutions for government, military and commercial enterprises. The foundation of INTEGRITY Global Security is the INTEGRITY Separation Kernel, the first and only separation kernel technology to be evaluated by the NSA and certified by NIAP to EAL6+ High Robustness for the protection of classified and high value information against well funded sophisticated attackers. INTEGRITY Global Security is headquartered in Santa Barbara, CA, with European headquarters in the United Kingdom. INTEGRITY Global Security™, Secured with INTEGRITY™ and Making Computing Secure™ are trademarks or registered trademarks of INTEGRITY Global Security, LLC. All other trademarks are the property of their respective owners. To learn more about how INTEGRITY Global Security can make computing secure for your organization please visit www.integrityglobalsecurity.com.

Green Hills, the Green Hills logo, and INTEGRITY are trademarks or registered trademarks of Green Hills Software, Inc. in the U.S. and/or internationally. All other trademarks are the property of their respective owners.