BSQUARE Helps NEC Yonezawa Power Windows CE-based Industrial Devices.

Business Editors/Technology Writers

BELLEVUE, Wash. & TOKYO--(BUSINESS WIRE)--Dec. 12, 2000

NEC Yonezawa relies on BSQUARE to provide technology,

assist in the development of a reference design

for industrial intelligent computing devices

BSQUARE Corporation (Nasdaq:BSQR), a world leader in providing products and services for the development and deployment of intelligent computing devices, recently provided a host of software products and service solutions to save NEC Yonezawa, Ltd. significant development time and expense for their new evaluation board.

NEC Yonezawa's RISCMAGIC BR4310 series evaluation board provides OEM customers with a development foundation for a variety of intelligent computing devices in the industrial marketplace.

The RISCMAGIC board is aimed at NEC Yonezawa's traditional set of customers still operating in DOS environments. The board provides the man-machine interface for industrial devices, and NEC Yonezawa selected Windows(R) CE as the operating system due to its rich set of user interface capabilities and other familiar Windows-based features. The RISCMAGIC board is currently shipping to customers in Japan.

"We were proud to help NEC Yonezawa meet their customer's needs for a more full-featured man-machine interface on a variety of devices," said Hideyasu Chijiiwa, BSQUARE's Japan country manager. "NEC Yonezawa is a wonderful company to work with, and we look forward to the opportunity to provide additional top quality products and services to NEC Yonezawa."

"BSQUARE is the leading expert in Windows-based solutions for development environments," said Hiroyuki Kaneda, Engineering Manager of NEC Yonezawa. "By outsourcing the development work to BSQUARE, we were confident we would receive advanced technology, delivered with knowledgeable service, and save us both time and development expense. BSQUARE's software adds excellent function and value to our new product."

NEC Yonezawa worked with BSQUARE's Tokyo office to license the products and set up the service contracts. For the NEC Yonezawa RISCMAGIC BR4310 series evaluation board, based on Windows CE, BSQUARE delivered a host of software and service solutions, including:

-- Software engineering services to adapt the Windows CE operating system to
the NEC Yonezawa evaluation board

-- Software engineering services to develop several custom device drivers,
including drivers for the PCMCIA and serial ports

-- Custom quality assurance services.

For further information on the RISCMAGIC BR4310, interested customers can visit NEC Yonezawa at http://www.nec.co.jp/ynec.

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 handheld computers, set-top boxes, web pads, Internet appliances, industrial automation devices, Windows-based terminals, and other mobile and wireless intelligent computing 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 http://www.bsquare.com or call 888/820-4500.

BSQUARE is a registered trademark of BSQUARE Corporation. All other 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 the 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 "Certain Factors That May Affect Future Results." 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.