BSQUARE Introduces World's First XML-based Remote Update Software For Windows CE-based Devices.

Business Editors

Embedded Systems Conference Spring 2000

CHICAGO--(BUSINESS WIRE)--Feb. 29, 2000

Powerful software enables Windows CE devices to

"phone home" for software updates anytime, anywhere

BSQUARE Corporation (Nasdaq:BSQR) announced today the world's first remote update software for intelligent computing devices based on the Windows CE operating system.

BSQUARE's new CE Remote Updater is an off-the-shelf software development kit for original equipment manufacturers (OEMs) creating devices that will need to update data, software applications, device configuration or even the operating system itself from a remote location.

"With the growth in deployed Windows CE-based devices, there is an increasing need for these devices to be updated in the field," said Denise Slocombe, Business Unit Director of BSQUARE's Mobile and Wireless group. "Now with CE Remote Updater, software developers can get new applications out to market faster and update them later with new revisions. Mobile enterprise users can get time-critical information like price lists so they're always up to date. CE Remote Updater increases the productivity of virtually all developers and mobile users of Windows CE-based intelligent computing devices."

"One of the most powerful features of Windows CE is its ability to share data with other Windows operating systems, such as a Windows NT Server," said Don Chouinard, marketing manager for Windows CE OS and Tools at Microsoft Corp. "We are excited that BSQUARE is working to provide a connectivity solution for remote devices to access the server for updating at individual times, from individual locations."

CE Remote Updater Enables Developers to Quickly Implement Update Capability on Devices

The new development kit enables OEM and application developers to give Windows CE-based devices complete control over the update process. According to Slocombe, "A mobile worker, for example, can update his or her database remotely at a convenient time, rather than have to be connected at a certain time each day to receive information pushed down from the server."

Using the development kit, developers can quickly and easily create Windows CE-based software applications that call in to a remote server from a remote location and update:

-- Data such as inventory, price lists, contact names

-- Applications to update, for example, to the latest version of an inventory
tracking program

-- Windows CE registry for updating device configuration

-- Windows CE OS image for updating to a new OS configuration

Update files can be stored on Unix or NT servers for access from the Windows CE-based devices. Results from the update process are stored in a log file.

CE Remote Updater uses an XML command file to control the update process and standard HTTP, FTP and CIFS (Common Internet File System) protocols for accessing update files.

Although the CE device can operate completely independent of a server, sample code is included with CE Remote Updater to demonstrate how the CE device update process can be triggered by a remote server thereby passing control of the update process to the server.

Price and Availability

CE Remote Updater will be available from BSQUARE and authorized distributors worldwide in the second quarter for an unlimited use site license for $10,000. Run-time royalties depend upon quantity of licensed devices.

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 supplies software products and services for the development and use of 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 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 failure of the market to accept this product, delays in the introduction of the product, 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.