BSQUARE Introduces Turnkey OEM Solution for Thin Clients based on Windows NT Embedded 4.0.

Business Editors/High Tech Writers

BELLEVUE, Wash.--(BUSINESS WIRE)--Oct. 29, 2001

BSQUARE's WBT Professional 2.0 Provides OEMs with Complete

Solution For Fast Development of Windows-Based Terminals

BSQUARE Corporation (Nasdaq:BSQR) today announced the immediate availability of WBT Professional 2.0, a turnkey solution for developing custom Windows-based terminals powered by the Microsoft(R) Windows(R) NT Embedded 4.0 operating system.

Windows-based terminals enable enterprises to migrate from traditional "green screen" terminals to rich Windows applications while minimizing Total Cost of Ownership (TCO). They are also recognized as an excellent client platform for educational, retail/POS, and other environments where the power of a full PC operating system is not required. In combination with Microsoft Windows Terminal Services or Citrix's Metaframe, WBTs are a powerful tool for rapidly deploying centrally managed line-of-business or productivity applications across an organization.

WBT Professional (WBT Pro) from BSQUARE is a ready-to-market solution for thin client OEMs. It includes a feature-rich WBT Shell, configurable browser, and BSQUARE's RDA remote management solution. This dramatically reduces the time and cost of developing Windows-based terminals, allowing OEMs, ODMs, and systems integrators to quickly bring highly customized products to market. WBT Pro is a complete software solution -- fully tested and verified on BCOM WinNET 6 hardware based on National Semiconductor's thin-client reference design, it can target any standard x86 hardware platform.

The WBT Pro development solution provides a set-up wizard and feature-rich WBT Shell to easily manage terminal connections and access server-based applications. It also features a local Microsoft Internet Explorer 5.5 browser to meet the growing demand for thin client access to Web-based applications and intranets.

To simplify the process of building the WBT image on the target hardware, WBT Pro fully integrates and extends Microsoft's Target Designer development tool. WBT Pro also includes BSQUARE's USB stack, which is not natively supported in Windows NT Embedded 4.0, for OEMs who want to design "legacy-free" systems that support USB peripherals such as keyboards and mice.

"Customers need to bring their Windows Powered devices to market faster than ever before and BSQUARE's Windows Based Terminal Professional SDK is a key ingredient in the rapid development of any WBT based on Windows NT Embedded 4.0," said Keith White, senior director of marketing for the Embedded and Appliance Platforms Group at Microsoft Corp. "By deploying BSQUARE's WBT Pro solution, OEMs and ODMs can provide end customers with a cost-effective and innovative solution that combined with the powerful and rich functionality of Windows NT Embedded 4.0 will allow customers to reduce their total cost of ownership while getting to market quickly."

"WBT Pro gives OEMs maximum flexibility in terms of optimizing footprint and functionality requirements for the different types of environments WBTs will be deployed in," said Greg Hoyle, Director of Device Solutions at BSQUARE Corp. "To optimize the OS footprint, for example, OEMs can install three different versions of the Internet Explorer 5.5 browser -- minimum, typical, or maximum. This allows OEMs to design one kind of thin client for customer support call centers and a different one for point-of-sale applications, optimizing the footprint and functionality for each environment."

WBT Professional 2.0 -- Operating System, Client Software, and

Remote Management

WBT Pro includes "componentized" modules and custom Target Designer descriptions for Internet Explorer (IE) 5.5, Citrix ICA Client 6.0, and Microsoft RDP Client 5.0, as well as support for Citrix nFUSE. This provides end users with full access to server-based applications using Microsoft Terminal Services or Citrix Metaframe.

The complete WBT Shell features a Connection Manager for adding, editing, and deleting connections; easy task switching between multiple open connections; and the ability to add additional connection client protocols such as 3270 emulation.

To further reduce Total Cost of Ownership, WBT Pro includes remote update capability and agents that work with BSQUARE's Remote Device Administrator (RDA) to enable full remote systems management capability.

Pricing and Availability

WBT Professional 2.0 is available immediately for a one-time OEM licensing fee plus per-device OEM royalties depending on product volumes. Contact BSQUARE sales at www.bsquare.com or call 888/820-4500 for more information.

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 Powered (our brand is Windows Powered without the Embedded part) 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.