BSQUARE's Mobile and Wireless Group Releases bFax Pro 5.0; Software Turns any Windows CE-based Handheld Computer into a Portable Fax Machine.

Business Editors, High-Tech Writers

BELLEVUE, Wash.--(BUSINESS WIRE)--March 14, 2000

Today BSQUARE Corporation (Nasdaq:BSQR) released a significant upgrade of its award-winning software, BSQUARE(R) bFax(R) Pro.

The new bFax Pro 5.0 contains several new enhanced features, including Internet faxing, inking and annotation support, and more for users of Windows CE-based Handheld PCs, Handheld PC Pros, and Palm-size PCs. The new software is currently available from the BSQUARE Online Store at www.bsquare.com and BSQUARE's authorized online distributors.

"The Internet is becoming the communications protocol of choice when sending a fax," explained Denise Slocombe, Business Unit Director for BSQUARE's Mobile and Wireless Group. "Through strategic alliances with industry leading Internet fax providers, JFAX.COM and NetMoves, we've incorporated Internet faxing into the new version of bFax Pro. By faxing over the Internet, the software user saves money and can even receive faxes when their handheld computer is disconnected from the Internet. Also, by connecting the device to a wireless modem card or a cellular phone, the user can send and receive faxes wirelessly. For handheld computer and other intelligent computing device users, bFax Pro 5.0 represents a significant step forward in mobile faxing."

bFax Pro already is enhancing the productivity of mobile workers. John Medeiros, an information systems technician for Rental Service Corporation, reports, "The sales representatives say that bFax Pro makes their lives easier. Now they can fax Word and Excel documents to the corporate office and receive faxes from their home offices. They don't need to drive to the regional offices as much. We're pleased -- the goal was to keep the sales force in the field as much as possible. The overall solution has been very successful, and the money spent on BSQUARE's software was money well spent."

According to IDC, in 2003, Windows CE will have a 40% share of the total worldwide handheld companion market in 2003. Pocket PC will have 40% of the US personal companion market and Handheld PC and Handheld PC Pro will represent 84.6% of the US PC companion market in 2003. IDC defines Pocket PC as a member of the "personal companion" category whereas Handheld PC and Handheld PC Pro fall into the category IDC terms "PC companions." Both categories together make up the "handheld companion" market.

New features in bFax Pro enhance use, save time and cost

bFax Pro 5.0 enables users to send and receive faxes from a Handheld or Palm-size PC anywhere, at any time. The new version makes it easier than ever to send or receive a fax while mobile through the incorporation of new Internet faxing features. Through Internet faxing, telephone connection costs are reduced, document delivery is confirmable, and the need to have the PC Companion turned on to receive a fax is eliminated.

The new Internet faxing capabilities in bFax Pro 5.0 are made possible through new alliances with JFAX.com and Mail.com (formerly NetMoves), two companies providing Internet faxing services. By dialing into a local phone number provided by JFAX.com or Mail.com, instead of the direct fax number, users can potentially reduce long distance telephone charges. Additionally, users can receive faxes on a special phone number assigned by Mail.com or JFAX.com. Once a fax is received, it is accessible to the bFax Pro user via e-mail. bFax Pro's tie-in with Mail.com and JFAX.com ensures that PC Companion device users can now access received faxes from their e-mail whenever they connect.

"BSQUARE is bringing all of the advantages of Internet faxing to the handheld device market," said Tim Johnson, vice president of marketing at JFAX.com. "Through our partnership with BSQUARE, for the first time end users will be able to realize the cost savings and dependable, flexible delivery features inherent to Internet faxing. We are proud to provide this capability through the new bFax 5.0 to Windows CE-based PC Companion users."

"As a leading provider of corporate fax solutions, we've seen increasing requirements access to our services from highly mobile workforces" stated Bill Fallon, Vice President of Marketing at Mail.com Business Messaging Services. "bFax Pro 5.0 coupled with Mail.com's email-based fax services provides a world-class solution for business users adopting Palm-size and Handheld PCs based on Windows CE to perform mission critical applications anytime, anywhere."

The new bFax Pro 5.0 also includes another key feature: support for inking. Using a stylus, users can simply open the document to be faxed and by writing on the touchscreen or touchpad, add "handwritten" notes on a document. The recipient of the fax can view the notes exactly as written on the document. Real estate agents, service personnel, and other mobile professionals can fax signed documents immediately from a handheld PC Companion.

bFax Pro 5.0 also features a new user interface and set up wizards for easier operation, high-resolution options for clearer outputs, offline rendering of the fax image to reduce telephone transmission time and cost, and several default cover pages to choose from. As in previous versions, bFax Pro 5.0 includes the ability to fax multiple documents to multiple recipients, includes support for multiple document and image file formats, and can be configured for batch faxing in a single, money-saving connection.

bFax Pro is also available to PC Companion Original Equipment Manufacturers (OEMs) for inclusion on additional types of intelligent computing devices based on Windows CE, including set-top boxes, screen phones, data collection devices and more.

BSQUARE recently formed the Mobile and Wireless Business Unit to address the information and communication needs of the mobile device developer and user. BSQUARE's engineering technologies include instant messaging, remote update of data and applications, data synchronization, and XML-based transaction processing over wireless LAN and WAN networks.

Availability and Pricing

SRP for bFax Pro is $49.95. However, until May 1, bFax Pro 5.0 will be available at an introductory price of $29.95 through the BSQUARE online store at www.BSQUARE.com and from BSQUARE's online distributors. Customers who wish to take advantage of the Internet faxing option provided by bFax 5.0 can sign up for the service separately with JFAX.com and Mail.com at special negotiated rates.

Owners of bFax 4.0 who purchased the product within the last 60 days are eligible for a free upgrade. For upgrade details, interested customers can contact [e-mail].

Customers who purchase bFax 5.0 for Palm-size PCs today will receive a free upgrade to a version of bFax Pro compatible with Microsoft's new Pocket PC platform, expected to be available during the second quarter.

About JFAX.com and Mail.com

JFAX.COM (Nasdaq:JFAX) is an Internet-based communications service provider to individuals and businesses in over 85 cities throughout the world, enabling the user's email box to function as a single repository for all email, fax and voicemail messages. Comprehensive information on JFAX.COM and its services is available at www.JFAX.COM or by calling 1.888.GET.JFAX. Mail.com, Inc., which recently acquired NetMoves, is a leading global provider of Internet messaging services to businesses, ISPs, Web sites and direct to consumers. Further information about Mail.com's Internet Fax solutions is available at www.netmoves.com; or the Mail.com corporate web site: http://corp.mail.com.

About BSQUARE

BSQUARE Corporation (Nasdaq:BSQR) is a dynamic software company working with Fortune 500 companies to enable the age of intelligent computing devices. Specializing in Windows NT Embedded and Windows CE, BSQUARE is a supplier of software products and services for PC Companions, Internet appliances, industrial automation devices, Windows-based terminals, and other intelligent computing devices. BSQUARE's expertise in embedded Windows is derived from years of contributing to the development of the Windows CE operating system, from serving as a Microsoft preferred provider of Visual Tools for Windows CE, and from in-depth experience with Windows NT. BSQUARE is a Microsoft-sanctioned systems integrator and distributor.

For further information, visit BSQUARE's web site at http://www.bsquare.com or call 888-820-4500.

Note to editors: For evaluation copies or screen shots please contact Michelle Manson at 425/519-5900 or [e-mail].

BSQUARE is a registered trademark of BSQUARE Corporation. All names, product names, and tradenames are trademarks or registered trademarks of their respective holders.

This release contains forward-looking statements relating to our sales that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words "believe," "expect," "intend," "anticipate," variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could affect BSQUARE's actual results include the failure of the market to accept this product, delays in the introduction of the product, adverse changes in BSQUARE's relationship with Microsoft, a decline in the market for Windows CE-based intelligent computing devices or the failure of such market to develop as anticipated, delays or announcements of delays by Microsoft of Windows CE product releases, competition and intellectual property risks. A more detailed description of certain factors that could affect actual results include, but are not limited to, those discussed in BSQUARE's Quarterly Report on Form 10-Q, in the section entitled "Risk Factors." Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. BSQUARE undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.