BSQUARE Launches SDIO Hx Enabling Ultra-High Performance for Windows(R) Mobile Wi-Fi Applications; New Software Stack Optimizes End User Experience for Music Streaming, Web Browsing, Network Gaming and More over Wi-Fi.

BELLEVUE, Wash. -- BSQUARE (Nasdaq:BSQR) today launched SDIO Hx, a new ultra-high-performance software stack for Windows Mobile 5.0 and Windows CE 5.0. OEMs currently use Secure Digital Input Output (SDIO) as a bus to add Wi-Fi capability but new media-rich wireless applications and end user demand for quicker response times have created a market requirement for higher throughput rates over the bus. SDIO Hx enables higher throughput rates enabling OEMs to better support data-intensive, media-rich wireless applications and deliver faster response times for wireless Web browsing, file sharing, and network gaming. SDIO Hx enables high SD bus throughput rates of over 10 Mbps, a new benchmark in performance. Therefore, for example, a Windows Mobile user with SDIO Hx can download the same song from an Internet access point over a Wi-Fi network to their Windows Mobile device in 30 seconds instead of 3 minutes.

"BSQUARE provided the standard for Windows CE and Windows Mobile drivers with its SDIO Now! products," said Pawan Gupta, Vice-President of Products and Marketing, BSQUARE. "As OEMs pursue SDIO technology to implement lower-cost Wi-Fi capability in mobile devices, and as Windows Mobile and Windows CE device consumers demand media-rich applications and faster response time for current applications running over Wi-Fi, the demand for SDIO Hx will grow rapidly."

"We're impressed with how BSQUARE's new SDIO Hx product accelerated the delivery of bandwidth-intensive content to Windows Mobile and Windows CE-based devices, and see this as a powerful tool for OEMs who need to deliver a media-rich experience to end users," said Jane Gilson, director, Mobile and Embedded Devices Division, Microsoft Corp.

"SDIO Hx allows us to fulfill end user demand for fast Web browsing and network gaming experiences," said Moses Asom, SVP Marketing and Business Development, SyChip Inc. "We see our customers embracing SDIO-enabled Wi-Fi and adopting SDIO Hx in order to achieve high throughput with SyChip Chip Scale modules in Windows CE and Windows Mobile environment."

SDIO Hx will be available late in the second quarter of 2006. The product will ship as a driver development kit with run-time royalties.

About BSQUARE

BSQUARE, a member of the SD Card Association, is a software solution provider to the global embedded device community. Committed to delivering quality, lowering project risk and cost as well as time to market, our teams collaborate with smart device makers at any stage in their device development. Our solution portfolio includes software and hardware development, systems integration services, reference designs, board support packages, middleware, and applications. As a full-service provider, device makers can also license best-in-class software products and operating systems. Since 1994, BSQUARE has completed hundreds of successful projects and has become a trusted partner to smart device makers worldwide. For more information about BSQUARE, visit its website at www.bsquare.com.

BSQUARE is a registered trademark of BSQUARE Corporation. Other product or service names mentioned herein are the trademarks of their respective owners.