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ATCA/Standard Servers

RadiSys Lowers Forecast

HILLSBORO, Ore. -- RadiSys Corporation (NASDAQ:RSYS) , a leading global provider of advanced embedded systems, announced today that the Company expects fourth quarter revenue to be approximately $62 million and diluted earnings per share to be between $.13 and $.15. This revised projection includes an estimated 3% tax rate for the fourth quarter and a 20% full year tax rate, due to lower estimated fourth quarter earnings. This estimate also anticipates recording a tax benefit for the fourth quarter of approximately $1 million, or $.04 per share, associated primarily with a projected increase in utilization of deferred tax assets. The Company provided guidance on October 27, 2005 for revenues of $68 - $72 million and diluted earnings per share of $.12 - $.14.

"Revenues for wireless infrastructure were weaker than expected in the fourth quarter," said Scott Grout, Chief Executive Officer. "We were expecting a decline in our wireless business from record levels in the third quarter. However, our revenue decrease in the wireless segment was larger than previously anticipated, due in part to customer initiatives to reduce buffer inventory levels. Revenues for the remainder of our business performed as we previously expected."

RadiSys will announce results for the fourth quarter 2005 after the market closes on Thursday, February 2, 2006. Following the February 2 earnings release, Scott Grout, Chief Executive Officer and Julia Harper, Chief Financial Officer, will host a conference call at 5:00 p.m. EST to discuss the Company's results, along with business highlights and outlook.

Radisys Corp. (Nasdaq: RSYS)

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