BSQUARE Expands Sales Representation for Software Solutions Throughout Asia, Europe.

BELLEVUE, Wash.--(BUSINESS WIRE)--Nov. 22, 1999--

Three new representative agreements broaden the reach of

BSQUARE's software products and services for the development of

intelligent computing devices

BSQUARE Corporation (Nasdaq:BSQR) announced today that its Windows CE-based software products and engineering services will now be sold to intelligent computing device manufacturers throughout Asia and Europe through newly signed agreements with Chander Electronics Corporation, Channel Systems Components, and Memec.

Effective immediately, these agreements enable BSQUARE to achieve a wider distribution of its software solutions and customers to receive the benefits of local sales representation.

"There are numerous manufacturers throughout Europe and Asia currently developing intelligent computing devices based on the Windows CE operating system, and they're in need of software development services, toolkits, and applications," stated David Bialer, general manager of BSQUARE Corporation. "Through these world-class representatives, BSQUARE will be able to better reach and support its expanding global customer base."

Chander, Channel, and Memec will act as both distributors and manufacturer's representatives in their respective markets. The three companies will represent the various BSQUARE product lines, including CE Xpress(TM) software development kits, BSQUARE's user interface design product, CEValidator(TM) quality assurance tool, custom engineering services, and custom quality assurance services. Additionally, the three companies will resell BSQUARE's Windows CE-based Handheld and Palm-size end-user software, including bFax(R) and the bUseful(TM) Utilities Pak.

All three companies will also provide localized sales and technical support to BSQUARE customers.

Chander Electronics Corporation., based in Taiwan, will represent BSQUARE products and services throughout China, Hong Kong, and Taiwan. "As specialists in the distribution of IC components and tailored software solutions in these regions, we are very excited to add BSQUARE's products to our offerings," stated Lock Chen, CEO of Chander Corp.

Channel Technologies, based in Singapore, will bring BSQUARE's offerings to Singapore, Malaysia, Thailand, Indonesia, and the Phillipines. "Our customers will benefit from local representation of BSQUARE's line of development products including the CE Xpress Kits, CEValidator, CE EmbeddedDesktop, project engineering services, and more," said Dennis Ng of Channel Technologies.

Memec will work in conjunction with BSQUARE's local sales office in Germany for German-speaking countries, and then represent BSQUARE throughout more than ten additional European countries including the United Kingdom and France. "With customers like Siemens developing intelligent computing devices in this market, it was imperative that we offer a more complete software solution. We are delighted with BSQUARE's vote of confidence in selecting us as a representative," said Preben Lohse of Memec. Memec is based in the United Kingdom.

About BSQUARE

BSQUARE (Nasdaq:BSQR) is a dynamic software company working with Fortune 500 companies to enable the age of intelligent computing devices. Specializing in Windows CE and Windows NT Embedded, 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 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 in Asia and Europe, 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 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.