BSQUARE Named a Leading Technology Provider for B-to-B, E-Commerce Companies In Upside Magazine.

Business/High Tech Editors

BELLEVUE, Wash.--(BUSINESS WIRE)--Aug. 9, 2000

BSQUARE Corporation (Nasdaq:BSQR) was named one of the 600 leading companies providing pivotal technology for Business-to-Business e-commerce companies in the August issue of Upside Magazine, the most widely read business technology magazine with a focus on reporting and analyzing the dynamics of the business technology marketplace.

BSQUARE received the distinction as a key provider of network appliance technology. Joining BSQUARE in this category of the list were other leading companies including Ericsson, Motorola, Nokia, Qualcomm, Inc., Tivo, Inc., and Wink Communications, Inc.

"The variety of intelligent devices including network appliances is growing rapidly, and we are proud to play an integral part in the development and deployment of these exciting new devices," said William Baxter, president and CEO of BSQUARE Corporation. "We continue to expand our market leadership position with new and innovative solutions. BSQUARE is instrumental in providing our clients with total solutions to rapidly develop, deploy, and remotely manage the intelligent devices that are becoming pervasive in today's Internet economy."

BSQUARE provides a broad line of products and integration services for the development and management of devices such as advanced digital set-top boxes, Web pads, Windows-based Terminals, Web phones, and handheld computers. From operating systems to integration software to end-user applications, BSQUARE's solutions are on many intelligent devices in the market today.

The complete list is published as an insert entitled "The Prudential-Upside 600" in the August issue of Upside Magazine.

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 PC Companions, set-top boxes, web pads, Internet appliances, industrial automation devices, Windows-based terminals, and other mobile and wireless intelligent 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 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.