This paper presents the results of modeling of an inverted pendulum system driven by a linear pneumatic motor and equipped with relatively low-cost potentiometer-based position measurement system. Based on the nonlinear model of the overall pendulum system, which also includes notable friction effects, a linearized model is derived. The linearized model is used as a basis for the design of state feedback controller based on LQ and LQG optimization procedures. The linear state feedback controllers are augmented by a compensator of nonlinear friction effects whose design is based on the results of experimental identification of an appropriate static friction model. The proposed pendulum controller structures have been verified by means of computer simulations and experimentally on the experimental setup of a pneumatically actuated inverted pendulum.