BSQUARE Delivers First XML Developers Kit to Support All Windows CE Devices.

Business Editors/Technology Writers

BELLEVUE, Wash.--(BUSINESS WIRE)--June 12, 2000

Pioneering new product provides valuable tools

not previously available.

BSQUARE Corporation (Nasdaq:BSQR) announced the launch of their new CE XML Developers Kit, the first to support the development of application software running on all devices using Windows CE version 2.11 and above.

This new product will enable developers to quickly create XML-aware Windows CE applications and process XML messages quicker and faster. XML, extensible markup language, enables businesses to communicate much more efficiently by providing a standard language to exchange information between businesses or between businesses and their customers.

"The XML marketplace is quickly gaining momentum and we recognized the need for quality development tools for developers of innovative devices such as web pads, smart phones, wireless PDA's and more," states Denise Slocombe, director of BSQUARE's mobile and wireless group. "Statistics show that nearly 70 percent of developers are planning to use XML at some point in the future. With the release of the CE XML Developers Kit, BSQUARE is at the forefront in providing XML-based solutions for embedded Windows developers."

Mobile Computing Corporation, a Leading Supplier of Wireless

Information Systems, Utilizes BSQUARE's XML Developers Kit

"Our clients needed open e-commerce solutions, and that naturally pointed to XML. BSQUARE had the tools that our developers needed in order to provide XML capabilities in our Windows CE mobile systems," stated David Cunningham, president and CEO for Mobile Computing Corporation. "The CE XML Developers Kit provided us a quick and reliable XML solution. We were excited to learn that BSQUARE offered this solution because we have worked with them in the past and they have consistently provided us with quality products and great support."

Quickly Create XML-aware Windows CE Applications

with BSQUARE CE XML Developers Kit

-- Includes an XML parser, generator and Document Object Model

(DOM) manager.

-- Supports XML development for Windows CE 2.11, 2.12 and 3.0

-- Ships with ready-to-use COM components and source code upon

signed agreement, enabling developers to code advanced XML

features.

-- Supports the IE 5.0 XML (DOM) interface

-- Uses the same interfaces as Windows(R)NT(R)

Price and Availability

CE XML Developers Kit is available immediately from BSQUARE and authorized distributors worldwide for an unlimited use, royalty-free site license of $5000.

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, set-top boxes, web pads, 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. 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 the failure of the market to accept these products and services, adverse changes in BSQUARE's relationship with Microsoft, a decline in the market for Windows -based intelligent computing devices or the failure of such market to develop as anticipated, delays or announcements of delays by Microsoft of Windows 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.