BSQUARE Announces Complete Development Framework for Smart Devices.

Business Editors/Technology Writers

BELLEVUE, Wash.--(BUSINESS WIRE)--May 8, 2001

Integration of Essential Technologies Helps

Companies Develop Innovative Smart Devices More

Cost Effectively with Faster Time to Market

Helping companies overcome the difficulties of developing and managing smart devices, BSQUARE Corporation (Nasdaq:BSQR) today announced the Pivot 360(TM) framework.

BSQUARE's Pivot 360 framework incorporates the key elements required to successfully implement, deploy and manage a vast network of smart devices. The framework includes hardware designs, device software, software designs and test tools and remote device management software. Using the framework, companies can mitigate the risks associated with developing and deploying their own smart device solutions.

Creating smart device systems often poses unique challenges. Few companies have a combination of internal design capabilities, device hardware and software to develop smart devices, as well as manage and maintain them once they are deployed. Acquiring and integrating the components can be time consuming and costly, preventing companies from taking advantage of critical market windows and achieving return-on-investment goals. With the Pivot 360 framework, companies can leverage the core technology and building blocks developed by BSQUARE for multiple smart device solutions. This gives developers more time to concentrate on customization and value-added features for their customers, while maintaining cost and schedule goals.

"BSQUARE has taken an in-depth look at the challenges faced by smart device manufacturers, service providers, enterprises and end-users. With Pivot 360 we have developed a tightly integrated, comprehensive solution that addresses many of the issues they face today. No matter what type of smart device is being developed, there is a consistent set of functions that are necessary for a managed solution," explained Bill Baxter, chairman and CEO of BSQUARE Corporation.

"The Pivot 360 framework addresses those functions from the device to the backend server, and is based on reliable proven technology. We've taken care of all the difficult challenges companies usually face by providing a streamlined set of device software, development and test tools, and management software essential for developing and delivering a managed smart device," said Baxter. "We've reduced the development effort and risk so companies can rapidly prove a product and get into production in a timely, cost effective manner."

For even faster development time, BSQUARE has integrated the Pivot 360 technologies into solutions with clearly defined hardware and software components presently available for end applications such as Windows-based terminals, Web telephones, and Telematics. Additionally, BSQUARE offers customizable generic Internet appliance kits for a variety of horizontal and vertical markets. These complete solutions enable OEMs to get non-customized products ready for manufacturing in less than two months.

"The information appliance industry is an exciting, but complex marketplace that straddles numerous industries," said Dr. Egil Juliussen, President, eTForecasts. "As is common in a new industry, there is a combination of confusion and uncertainty. BSQUARE's Pivot 360 Framework enables appliance builders to quickly develop a differentiated information device for any industry with minimal risk, and then further modify the device as target markets evolve."

The BSQUARE Pivot 360 -- Hardware

The BSQUARE Pivot 360 includes pre-engineered and pre-qualified hardware solutions that provide OEMs with a working, customizable hardware platform. SmartBuild(TM) Product Design Packages include all the hardware and software components necessary to build a Windows CE-based Information Appliance in any form factor, ranging from the smallest handheld devices to larger information kiosks. This enables OEMs to start with a chosen form factor and spend development time adding value-added features.

If companies want to customize hardware or add additional applications, the Pivot 360 includes device driver toolkits with source code and device driver wizards to ensure that the software and hardware function together. BSQUARE's Device Driver Toolkits, WinDK(TM) and WinRT(TM), provide source code, code samples, and Device Driver wizards to develop device drivers and hardware control programs. The toolkits work several different operating systems, including Windows CE, and are offered in different are versions to support add-ons such as USB and Bluetooth technology.

The BSQUARE Pivot 360 -- User Interface

The BSQUARE Pivot 360 includes a software architecture that gives OEMs full control over the look, feel, and functionality of their User Interface (UI). iWin Information Appliance Design Kit(TM) (iWin) includes all the technology needed to configure user interfaces on Information Appliances. It also includes the remote management and remote update agent technology that needs to be installed on clients devices for them to be managed remotely.

iWin allows OEMs to design unique interfaces that are tailored to specific customer needs. The graphical look-and-feel is designed using standard HTML editors while the application interactions are implemented using JScript. The Pivot 360 extends JScript with additional APIs that provide access to OS Shell functions, event notification, and keystroke capture.

OEMs can even design a generic UI and then allow ISPs, VARs, and other partners to customize the device by making modifications to the UI. When combined with BSQUARE's updating and management technology, OEMs can update or reconfigure the UI over the Internet.

The BSQUARE Pivot 360 -- Remote Management

BSQUARE's server and application tools allow OEMs to build remote update and remote management agent capabilities into any Information Appliance. The unique combination of "push" and "pull" technologies allows OEMs, corporate IT departments, and ISPs to remotely manage Information Appliances and other thin client devices in the field.

Remote Device Administrator(TM) (RDA) functions as the server component of the Pivot 360 and enables companies to push content and program updates to remote devices. With RDA, companies can also track and monitor enterprise-wide deployments, view or set device configuration settings, and initiate or schedule updates to the remote device. Pull technology allows devices to get updates, such as operating system updates, applications, stock quotes and news, from a remote server.

"With RDA we are delivering to the market, not just a product with the breadth to manage device content, but the depth to manage every aspect of the device, including the complex tasks of securely updating all aspects of the device in a fail-safe manner," Baxter said. "As companies increasingly turn to remotely managing smart devices, these issues and the elegance of BSQUARE's Pivot 360 solution will become more apparent."

The BSQUARE Pivot 360 -- Testing

The BSQUARE Pivot 360 includes automated testing tools for every stage of Information Appliance development -- from device design to manufacturing testing and application verification -- to guarantee that the Pivot 360 technology works to highest quality standards. CEValidator(TM) Quality Assurance Products represent the world's only fully automated design verification environment for Microsoft(R) Windows(R) CE platforms and device drivers.

The Pivot 360 testing tools operate on a common user interface and execute more than 9,600 individual pass/fail tests in more than 150 pre-configured test suites designed to automatically evaluate each function in a device driver. For application verification, the Pivot 360 can create test scripts, generate test source code, and test for user interface issues; no complex programming is required and generated results are viewable in a graphical interface.

The BSQUARE Pivot 360 -- Communications

The BSQUARE Pivot 360 enables device-to-device, device-to-server, and server-to-device communication via industry-standard Bluetooth technology. The Pivot 360 also includes all the primary communication protocols required for Information Appliances to connect with servers and exchange data over LANs and WANs. ISPs and content providers can access devices to update them with data from outside sources or remotely manage devices with new software updates.

About BSQUARE

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

BSQUARE is a registered trademark of BSQUARE Corporation. All names, product names, and trade names are trademarks or registered trademarks of their respective holders. Pricing is subject to change without notice.

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, risks associated with fixed-fee contracts, 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 Annual Report on Form 10-K, 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.