BSQUARE Strengthens Management of Engineering and Consulting Services Business; Carey Butler Appointed Vice President of Professional Engineering Services.

Business Editors/High-Tech Writers

BELLEVUE, Wash.--(BUSINESS WIRE)--Dec. 17, 2003

BSQUARE Corporation (Nasdaq:BSQR) today announced the appointment of Carey E. Butler as vice president of professional engineering services.

"Carey's addition to our executive management team is designed to best leverage market demand from OEMs and silicon vendors for Windows Embedded and Windows Mobile consulting and engineering services," said Brian T. Crowley, BSQUARE's president and CEO. "Her vast experience in executive management of professional services for software and technology companies includes particular focus on business strategy and planning, operations, sales, marketing, and new product development. We expect that Carey's energy, enthusiasm and over 15 years of executive and managerial experience with entrepreneurial, turn-around, and high-growth companies will contribute to scaling BSQUARE's services organization as well as the overall effectiveness of the company."

Prior to joining BSQUARE, Ms. Butler served in various executive professional services management positions including Information Builders, a business intelligence software and services company, where she managed all aspects of professional services sales, business development and service delivery. As a vice president at Aris Corporation, Ms. Butler had P&L responsibility for the service areas of eBusiness and ERP. At BDO Seidman, LLP, a public accounting and technology-consulting firm with twelve offices and 350 technology consultants, Ms. Butler was a partner who managed the CRM, training and ERP service lines. Earlier in her career, Ms. Butler founded Performance Computing and grew the company to a three-division offering including consulting services, vendor-certified training and software distribution. She then negotiated the acquisition of Performance Computing by BDO Seidman. Butler holds a B.A. in Business, Quantitative Methods (Computer Science) from University of Washington.

"The opportunity at BSQUARE to collaborate with leading smart device OEMs on their development roadmaps and next generation device solutions is exciting," Butler stated. "BSQUARE's reputation in Windows Embedded consulting and their engineering expertise in the smart device industry are unparalleled. I look forward to helping the company capitalize on the opportunities ahead."

About BSQUARE

BSQUARE accelerates the development, deployment, and management of next-generation smart devices and applications. For nearly a decade, BSQUARE has provided more than 150 world-class manufacturers, integrators, and service providers with the building blocks necessary to design, develop, and test innovative products quickly and cost effectively. The company's suite of products and services includes Device Development Solutions, Wireless Solutions, and Custom Engineering Services. BSQUARE offers its customers deep expertise in the latest hardware and software, providing critical engineering services that have resulted in the successful launch of hundreds of new products and applications. For more information, visit BSQUARE at www.bsquare.com or call 888-820-4500.

BSQUARE is a registered trademark of BSQUARE Corporation.

This release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements relating to our sales, customer prospects, profitability, financial goals, revenue targets, cash usage and projected financial results. 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. Our forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict and could cause actual results to differ materially from those projected. Factors that could affect our actual results include a decline in the market for our products, technology licenses and services, a decline in the market for Windows-based or other smart devices or the failure of this market to develop as anticipated, adverse changes in macro-economic conditions, our ability to successfully implement, execute and make adjustments in our business strategy, business model or product offerings to meet the needs of our current, new and potential customers, risks associated with the effects of our restructurings and our ability to successfully support our operations, competition and intellectual property risks. In addition, demand for our Power Handheld based devices is uncertain and will be affected by a variety of business and economic conditions, including customer-ordering patterns. A more detailed description of certain factors that could affect actual results include, but are not limited to, those discussed in BSQUARE's Annual Report on Form 10-K for the year ended December 31, 2002 in the section entitled "Risk Factors" and in our subsequent Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We undertake 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.