BSQUARE Demonstrates Bluetooth Wireless Technology Solutions at Windows Hardware Engineering Conference.

Business Editors/Technology Writers

BELLEVUE, Wash.--(BUSINESS WIRE)--April 24, 2000

Windows CE and NT Support Bluetooth Wireless Technology

BSQUARE Corporation (Nasdaq:BSQR) announced that it will be conducting proof of concept demonstrations on Microsoft (Nasdaq:MSFT) Windows CE, Windows NT and Windows 2000 of Bluetooth(TM) wireless technology at the Microsoft Windows Hardware Engineering Conference this week.

BSQUARE will demonstrate a Shopper's Assistant running on a Windows CE-based web pad communicating with a Windows NT server. In addition, demonstrations of browsing via Bluetooth wireless technology will be shown on Windows 2000 and Windows NT. Both demonstrations will be running the Bluetooth PCMCIA Demo Card from Digianswer A/S. The demonstration will be shown in BSQUARE's booth, No. 110/112.

"Bluetooth wireless technology offers exciting opportunities for seamless connectivity between intelligent computing devices. BSQUARE intends to be a major player at the forefront of assisting developers capitalize upon this new technology," said William Baxter, president and CEO of BSQUARE. "Solutions with Bluetooth complement BSQUARE's wireless strategy of offering connectivity from Wide Area to Personal Area networking."

BSQUARE presently offers solutions for integrating hardware on all Microsoft operating systems including Windows 2000, Windows NT, Windows NT Embedded, Windows CE and Windows 98/95. With the demonstrations, BSQUARE intends to show developers how they can integrate Bluetooth into Windows-based devices, reduce their development cycle and help them reduce their time to market.

"The demonstrations of Bluetooth are produced with BSQUARE's device driver toolkit WinDK(TM), with the user interfaces produced with Interface Composer," said Paul Lever, director of platform technologies at BSQUARE. "These are great examples of the leading edge products delivered by BSQUARE for intelligent device development."

About Bluetooth

The Bluetooth wireless technology is a specification for a small form factor, low-cost radio solution providing links between mobile computers, mobile phones and other portable devices for the transmission of voice and data in real-time. The use of radio transmissions enables Bluetooth to replace the proprietary cables used today. Bluetooth is led by a consortium of leaders in the telecommunications and computing industries, including Microsoft, Ericsson, 3-Com, Lucent Technologies, Motorola and more, that are driving development of the technology and bringing it to market. Additional information on Bluetooth wireless technology is at http://www.bluetooth.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 the Windows family of operating systems, BSQUARE supplies software products and services for the development and use of advanced set-top boxes, thin clients, web appliances, and other mobile and wireless 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 Authorized Windows CE System Integrator, Solutions Provider and Embedded Tools Partner.

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 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.