BSQUARE Helps Speed Development of MSU Devices' V5; 16-Week Development Path Means Fast Time-To-Market for V5 Internet Access Device.

Business/Technology Editors

COMDEX Fall 2001

DALLAS--(BUSINESS WIRE)--Nov. 13, 2001

BSQUARE Corporation (Nasdaq:BSQR) and MSU Devices, Inc. (OTCBB:MUCP), today announced their collaboration on the development of a new device that promises flexible, inexpensive access to the Internet.

The focus of MSU Devices' V5 is easy access to the Internet, flexible viewing options -- including TV and standard computer monitors -- and programmability, all without compromising simplicity and a PC-like experience for their customers.

BSQUARE, the industry's leading Microsoft Windows CE operating system integrator, designed and integrated the product's software environment utilizing its intellectual property portfolio. BSQUARE's WinDK for Windows CE delivered the software tools needed to develop the custom platform and quickly embed the Windows CE operating system. Further platform customizations were performed by BSQUARE's professional engineering services and supported by a growing library of hardware device drivers and a highly configurable loader, along with BSQUARE's tested and verified OEM Adaptation Layer (OAL) code.

"A unique blend of professional services, plus internally developed and licensed software products, made BSQUARE the ideal development partner for MSU Devices," said Ray Dittrich, vice president of sales of MSU Devices. "They turned our project around in just 16 weeks, enabling us to reach our product launch date of the November Comdex show in Las Vegas."

"We specifically designed the V5's software package to appeal to both business users working in an office and consumers enjoying leisure time at home," said Scott Bufkin, vice president of professional engineering services of BSQUARE Corporation. "The V5 can perform basic functions like word processing, spreadsheets, and Web browsing, but it can also be programmed to run specific business applications. When combined with Internet services, the V5 becomes a powerful, flexible product that we believe will attract a wide variety of end users."

MSU Devices' V5 comes equipped with an infrared keyboard for use from close range such as on a desk or as far away as the living room sofa. Optionally, a user can attach a standard wired keyboard/mouse attached through standard PS/2 connectors. Access to the Internet is through either a 56K modem or via standard Ethernet. Ethernet also allows a user to connect to the Internet using a broadband DSL or cable modem. MSU Devices' V5 is also equipped with two USB ports, a smart card interface, and a PCMCIA interface and an expansion bus connector.

Availability

The MSU Devices' V5 is available in quantity in Q4 2001 under the MSU Devices brand name and also under the company's private labeling program. The Company will launch the product at the Fall Comdex Exhibition in Las Vegas on November 12th. They will be located in booth L1709-97AP.

About MSU Devices Inc.

MSU Devices Inc. (OTCBB:MUCP) designs, manufactures, markets and sells affordable and intuitive Internet access devices that enable end-users to communicate simply and easily using e-mail and by browsing the World Wide Web via the Internet. MSU Devices' subsidiary in Milton Keynes, UK was formed in 1991 and has designed Internet access devices distributed in six countries. The forthcoming MSU Devices' V5 can output World Wide Web data and e-mail to a TV, computer monitor and flat panel LCD. With Java virtual machine support for displaying Java applets found on World Wide Web sites, MSU Devices' V5 can also be programmed using Java programming tools. The MSU Devices V5 will be powered by National Semiconductor's Geode GX1 processor and the Windows CE operating system. The MSU Devices' V5 is being designed to feature a full range of software and connectivity options and will come fully featured to be used as a set-top box, Internet access device and a thin client. For more information, visit MSU Devices, Inc. at www.msucorp.com or call 972/473-7543.

Certain information included herein is forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. Such forward-looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. These risks and uncertainties include, without limitation, our history of significant operating losses which together with an inability to raise capital could impact on our ability to continue as a going concern, our limited sales history, the acceptance of our product by consumers, dependence on third parties for the manufacture of our product, rapid technological change, the pressures of a competitive industry and other risks set forth in the Company's filings with the SEC.

About BSQUARE

BSQUARE Corporation (Nasdaq:BSQR) is a global leader in providing solutions for smart devices in consumer, enterprise, industrial, and automotive markets. As a leading partner for Microsoft, BSQUARE empowers the creation, connection, and management of Windows Embedded-powered smart devices through software, hardware, and service solutions. BSQUARE has an extensive product portfolio of software development and quality assurance tools, device and device management software and complete end-to-end managed device solutions. BSQUARE provides critical engineering services including device development, quality assurance, and system integration as well as services for managing client devices deployed into the market. For more information, visit BSQUARE at www.BSQUARE.com or call 888/820-4500.

BSQUARE is a registered trademark of BSQUARE Corporation. All other product and company names herein may be trademarks of their respective owners.

This release may contain 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 Embedded smart devices or the failure of such market to develop as anticipated, risks associated with international business, a change in strategy relating to indirect channels, delays or announcements of delays by Microsoft of Windows Embedded 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 "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.