BSQUARE Offers Power Handheld Reference Design For Customization by Global OEMs and Carriers.

Business Editors/Technology Writers

BELLEVUE, Wash.--(BUSINESS WIRE)--Sept. 4, 2002

Next-Generation Handheld Solution Based on Intel(R) Xscale(TM)

Technology And Microsoft Windows CE .NET Operating System 

Creating a new way for OEMs and wireless carriers to begin offering branded wireless communication devices and services, BSQUARE Corporation (Nasdaq:BSQR), a Windows Embedded Partner Gold-level member, today announced the Power Handheld(TM) reference design, a turn-key design solution that incorporates the latest technologies from Intel and Microsoft.

The Power Handheld reference design will be unveiled for the first time at the Intel Developer Forum (IDF) Conference (September 9-13, San Jose Convention Center) and highlighted during keynote addresses by Intel executives.

The Power Handheld reference design is the first mobile device to feature a VGA display that presents web pages like a laptop, a retractable QWERTY thumb-type keyboard, GSM cell phone, and built-in radio technology to access high-speed, always-on GPRS wireless data networks -- all in a very small handheld form factor. Designed to meet the needs of mobile professionals, BSQUARE's Power Handheld reference design provides carriers with an important new tool for attracting enterprise customers and offering exciting devices to complement their data networks.

The new reference design includes a comprehensive suite of productivity software applications and an integrated operating system software framework that emphasizes messaging such as email, SMS, IM and voice and supports the delivery of wireless data services. The Power Handheld allows enterprises to immediately extend their custom productivity applications to a wireless device without having to revise them to fit a small screen. Carriers and other service providers can quickly customize the white-label device and bring it to market with monthly service plans that bundle wireless voice and data services, enhancing monthly Average Revenue Per User (ARPU).

"Our Power Handheld reference design allows carriers to unlock ARPU by offering their enterprise and mobile professional customers the best mobile data application experience," said Bill Baxter, President & CEO of BSQUARE. "Now any carrier or OEM can leverage the latest Intel and Microsoft technologies, and offer its customers a truly integrated next-generation wireless handheld device. Our reference design supports their efforts."

"BSQUARE's Power Handheld is a great tool with very unique features for the enterprise," said Tony Sica, vice president of Intel's Wireless Communications and Computing Group. "To this point, it has been very difficult for OEMs and carriers to capitalize on the ever-increasing voice and data opportunities found in corporations of all sizes. Powerful clients like BSQUARE's that run on Intel(R) Xscale(TM) technology-based processors provide a very compelling way for wireless operators to turn data into dollars and enable OEMs to get into the wireless IT game in significant ways."

"The enterprise market continues to remain an open opportunity for vendors that can identify and satisfy corporate mobility goals, and for those that can redefine the utility of handheld devices," said Kevin Burden, IDC's Program Manager, Smart Handheld Devices. "Devices that make efficient use of the handheld form factor while using a familiar interface that is more similar to a PC will likely draw enterprise attention."

"BSQUARE's new Power Handheld reference design showcases some of the most powerful and rich capabilities of Windows CE .NET," said Todd Warren, general manager of the Embedded and Appliance Platforms Group at Microsoft Corp. "BSQUARE took full advantage of the wide range of technologies found in Windows CE .NET to deliver an innovative and feature-rich user experience, including support for multimedia functionality and networking capabilities."

BSQUARE Power Handheld Reference Design -- System Hardware

BSQUARE's new Power Handheld reference design is extremely light and compact, weighing approximately 280 grams (9.88 oz.) with battery, and measuring 140mm x 87mm x 19.6mm (5.5" x 3.4" x .77"). It features the Intel(R) XScale(TM) PXA250 processor running at up to 400MHz, 64MB RAM, and 32MB Flash memory. Additional storage is available via one SD memory card (up to 256MB).

The backlit four-inch color LCD (TFT) screen is capable of displaying 65k colors with VGA resolution (640 x 480 pixels) in landscape mode. Full VGA resolution allows users to view web pages, email attachments, spreadsheets, and other documents nearly a full page at a time. The slide-out (retractable) QWERTY thumb-type keyboard allows for easy input of text, while a touch-sensitive display allows for stylus input.

Other input and ergonomic features include two dedicated phone buttons (talk, end); three programmable launch buttons (email, web, start/today); four dedicated navigation buttons; five-way joystick; back/ESC button; one dedicated button for integrated 2x zoom capability; and an onboard microphone and headset microphone for audio input. The unit also incorporates a 2.5mm jack for an included accessory headset with microphone, volume, and on/off control for phone or stereo music.

An integrated dual-band GSM cell phone allows for speakerphone or headset operation, and supports advanced phone features normally found only on multi-line desktop phones. The GPRS (2.5G) Multislot 8, Class B module sends and receives wireless data across mobile telephone networks to provide worldwide remote connectivity. The integrated rechargeable Lithium Ion battery has approximately 1900mAh of capacity for hours of continuous web browsing.

BSQUARE Power Handheld Reference Design -- System Software

The BSQUARE Power Handheld reference design enhances user productivity with the industry's first true web experience on a handheld device. Users view full web pages in color VGA resolution using the Microsoft Internet Explorer browser (version 5.5) and popular plug-ins like Macromedia Flash, Java JVM, Windows Media Player, and PDF viewer.

Integrated messaging capabilities include both SMS and MSN Messenger Service. A full suite of productivity applications provides the functionality normally associated with Personal Digital Assistants (PDAs). These include an Outlook-compatible Personal Information Manager (PIM) with contacts, calendar, and tasks; Microsoft PocketWord; Excel-compatible spreadsheet calculator; and phone dialer/phone center.

The Power Handheld reference design incorporates BSQUARE's remote device management technology. Remote management enables carriers to roll-out new features and applications, and reduces the risk of expensive product recalls by permitting devices to accept remote updates.

The Power Handheld reference design uses the Windows CE .NET operating system, allowing BSQUARE to modify the software to meet specific OEM or carrier customer requirements. BSQUARE offers a full range of customization services through its Professional Engineering Services group. See the BSQUARE Power Handheld at www.bsquare.com/wireless/php.asp.

About BSQUARE

BSQUARE accelerates the development, deployment, and management of next generation smart devices and applications. The company's product and service suite includes Device Development Solutions, Wireless Solutions and Location-based Solutions. For nearly a decade, BSQUARE has provided more than 150 world-class manufacturers, integrators and service providers the necessary building blocks to design, develop and test innovative products quickly and cost effectively. BSQUARE offers its customers the deepest expertise in the latest hardware and software platforms and systems, providing critical engineering services that have resulted in the successful launch of hundreds of new products and applications. BSQUARE's new wireless product and service solutions help companies expand into new data-oriented mobile markets, increasing client revenue and reducing risk and support costs associated with product development. 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.