BSQUARE Adds Support for Pocket PCs with USB Cradles to USB for Windows NT 4.0 Product.

Business/High-Tech Editors

BELLEVUE, Wash.--(BUSINESS WIRE)--Nov. 9, 2000

BSQUARE Corporation (Nasdaq:BSQR) is the first company to provide millions of computer users running Windows(R) NT(R) 4.0 PCs with an easy way to connect and use Pocket PCs incorporating Universal Serial Bus (USB) technology.

BSQUARE's upgraded USB for Windows NT 4.0 connectivity software now supports Pocket PCs with USB synchronization cradles, in addition to supporting USB mice, printers, and keyboards on Windows NT 4.0.

Pocket PCs are increasingly penetrating the enterprise, and companies still standardized on NT 4.0 need a way to provide compatibility for the rapidly growing class of Pocket PCs powered by Windows. BSQUARE's USB for Windows NT 4.0 is the first product to provide this essential compatibility.

The USB for Windows NT 4.0 is available for corporate IT departments and computer users immediately. BSQUARE is also offering the USB for Windows NT 4.0 to its large customer base of original equipment manufacturers (OEMs) who can license the software for bundling with their devices that incorporate USB technology, such as Pocket PCs.

After installing BSQUARE's USB for Windows NT 4.0, computer users or IT departments can plug-in a Pocket PC with USB technology, such as the Compaq IPAQ, and obtain synchronization and communication ability immediately. OEM customers who bundle the software can provide this added value to their customers out of the box, enabling their customers to employ their USB peripherals and enjoy the advantages offered by USB.

"With 55 million Windows NT 4.0 workstation licenses, and the increasing amount of peripherals based on the newer USB technology, there is a large demand for the ability to use these new peripherals with existing systems," explained Paul Lever, business unit director of BSQUARE's Platform Technologies Group. "Because there is no native operating system support for USB on Windows NT 4.0, our USB for Windows NT 4.0 provides a low-cost solution that enables computer users to utilize their USB peripherals today while they consider upgrading to Windows 2000."

The new USB for Windows 4.0 easily installs and supports the use of multiple USB devices simultaneously. In addition to connecting any USB mouse, keyboard or printer, the new support for Pocket PCs enables users owning the HP Jornada 545/548, Compaq IPAQ, and Socket Compact Flash card to connect these devices to Windows NT 4.0.

USB replaces the many different kinds of serial and parallel port connectors with one standardized plug and port combination. Using USB-compliant PCs and peripherals, users simply plug a USB peripheral into the computer and it is automatically activated, without the need to reboot the machine.

Price and Availability

USB for Windows NT 4.0 is available for purchase now from the BSQUARE web site at http://www.bsquare.com. The suggested retail price is $79.95.

About BSQUARE

BSQUARE (Nasdaq:BSQR) is innovating tomorrow's devices through software solutions for the development of intelligent computing devices. Specializing in the Microsoft Windows family of operating systems, BSQUARE supplies software products and services for the development and use of PC Companions, Internet appliances, industrial automation devices, Windows-based terminals, and other mobile and wireless intelligent devices. From development tools to software infrastructures to end-user applications, the BSQUARE touch is on many embedded Windows-based devices available in the market today. For more information, visit BSQUARE at http://www.bsquare.com or call 888/820-4500.

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 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, the failure of BSQUARE to attract microprocessor vendors and to secure contracts on sufficiently profitable terms, factors that may affect BSQUARE's ability to complete work under contract, 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.