Alchemy Semiconductor Allies With BSQUARE to Deliver Microsoft Windows CE Support for the Au1000 Internet Edge Processor.

Business/Technology Editors

SAN FRANCISCO--(BUSINESS WIRE)--April 9, 2001

Software Solution Provider Brings Windows CE and Alchemy's

Au1000(TM) Together for Strong Entry into Enterprise Marketplace

EMBEDDED SYSTEMS CONFERENCE--Alchemy Semiconductor, Inc.(TM), an Austin-based fabless semiconductor company targeting the Internet Edge Device market, today announced it has signed an agreement with BSQUARE Corporation (NASDAQ: BSQR) to provide software development services to enable the support of Microsoft Windows CE 3.0 operating system on the Alchemy Au1000 processor. The agreement calls for BSQUARE to create the Au1000's HAL and device drivers for optimum performance of Windows CE 3.0 and the next version of Windows CE, code-named "Talisker," in targeted devices. Building on Alchemy's expertise in high performance, low power and high integration SOCs and BSQUARE's knowledge of Windows CE, the alliance will provide an excellent Windows CE-based solution for device manufacturers seeking an accelerated time to market.

Eric Broockman, Alchemy's President and CEO, emphasized that BSQUARE'S extensive experience and leadership with the Microsoft Windows family of operating systems was a critical factor in the company's decision to execute this agreement, from both a time-to-market standpoint, and BSQUARE's ability to support Alchemy in their efforts as a member of the Windows Embedded Strategic Silicon Alliance (WESSA).

"BSQUARE has built its expertise in the Windows operating systems by contributing to the development of Windows CE and working with Microsoft and several key OEMs for years," said Broockman. "Adding Windows CE 3.0 and `Talisker' to the portfolio of operating systems that run on the Au1000 is an important component of our business strategy. We are pleased to work with BSQUARE to achieve this in the fastest time frame possible. BSQUARE is a critical partner in the Au1000's success as we emerge first to market with an SOC in this performance and power class."

Scott Bufkin, vice president of BSQUARE's Professional Engineering Services Group, said providing these services to Alchemy aids BSQUARE in reaching new customer segments and is part of the company's strategy of providing comprehensive solutions for the rapidly growing classes of Internet edge devices.

"We are pleased that Alchemy came to BSQUARE for the software expertise on a highly integrated processor that has been so well received by critical markets," said Mr. Bufkin. "We believe its family of processors will be an important factor for OEMs in new markets, and fits in with our goal of consistently meeting the demand for present-day solutions while developing new solutions to meet future technological innovations."

Microsoft Windows CE 3.0 and 'Talisker' enable developers to build flexible and reliable Windows Powered smart devices quickly and easily, thus reducing time to market. Developers can also create devices that seamlessly integrate with existing back-end Windows-based computing environments and the Web - critical factors in enterprise and commercial computing needs.

"The agreement between BSQUARE and Alchemy will ensure that Alchemy's latest semiconductor technology has been optimized to run on Windows CE 3.0," said Keith White, senior director of marketing for the Embedded and Appliance Platforms Group at Microsoft Corp. "Alchemy's highly integrated Au1000, in combination with the rich functionality of Windows CE 3.0, will help enable embedded developers to quickly bring to market high-performing Internet appliances that demand rich applications and Internet services."

Alchemy Semiconductor debuted the Au1000 in February at the Microsoft Windows Embedded Developers Conference in Las Vegas, Nevada, where Microsoft announced Alchemy's inclusion in the Windows Embedded Strategic Silicon Alliance (WESSA). WESSA members have pledged to extend their support to the next version of the Windows CE operating system. The Au1000 is a complete SOC based on the MIPS32 instruction set (NASDAQ: MIPS), scalable from 266 MHz at <300 mW, 400 MHz at one-half watt and 500 MHz at 900 mW. It has highly integrated on-chip memory controllers, Internet access peripherals and runs a variety of operating systems, including Windows CE, Linux(R), and VxWorks(R). The high performance, low power, high integration SOC is targeted for the Internet Edge Device market: Customer Premise Equipment (CPE) products, including both wireless hand-held enterprise PDAs and remote Internet access products; and Internet infrastructure products, such as routers and line cards.

Alchemy Semiconductor and BSQUARE will be showcasing their products at the Embedded Systems Conference this week in San Francisco. Alchemy Semiconductor - Booth 2830 and BSQUARE - Booth 2202.

About Alchemy Semiconductor

Founded in Austin, Texas, in 1999, Alchemy Semiconductor is a fabless semiconductor company that designs, develops and markets high performance, yet very low power systems-on-a-chip (SOCs) for the Internet Edge Device market: Customer Premise Equipment (CPE) products, including both wireless hand-held enterprise PDAs and remote Internet access products; and Internet infrastructure products, such as routers and line cards. The company's founding team includes world-renown embedded microprocessor architects, led by former DEC Alpha / StrongARM design team members, allowing for a combination of proven design execution and MIPS performance technology to achieve high performance, low power dissipation and system integration in its Internet Edge Processor. Alchemy's headquarters are at 7800 Shoal Creek Blvd., Suite 222W, Austin, Texas 78757; or go to www.alchemysemi.com.

About BSQUARE

BSQUARE Corporation (Nasdaq: BSQR) is a worldwide leader in providing infrastructure solutions for smart devices in consumer, enterprise, industrial and automotive markets. BSQUARE empowers the creation, connection, and management of smart devices through software, hardware, and engineering service solutions. From device to server, and everywhere in between, the BSQUARE touch is on many Windows-based smart devices available in the market today.

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