BSQUARE Unveils Multiple New Solutions At the Embedded Systems Conference.

Business Editors/Technology Writers

Embedded Systems Conference 2000

SAN JOSE, Calif.--(BUSINESS WIRE)--Sept. 25, 2000

New products and services provide key technologies and solutions for

the rapid development of intelligent computing devices for

consumer and business markets

BSQUARE Corporation (Nasdaq:BSQR) strengthened its position as an industry leader in software, tools and technologies for Windows-based intelligent devices today by introducing 11 new and upgraded products and services.

The new offerings include developer tools, software applications, quality assurance tools and turnkey design foundations for the development and deployment of intelligent computing devices.

The new offerings extend BSQUARE's existing breadth of solutions and support BSQUARE's strategy of providing comprehensive solutions for the development and deployment of the rapidly growing classes of intelligent devices. BSQUARE is showcasing the new offerings this week at the Embedded Systems Conference, in San Jose, in booth 1345 and in the Microsoft Windows Embedded Partner Pavilion.

"We are strategically expanding our product line to meet the needs of a growing intelligent device market," stated William Baxter, president and CEO of BSQUARE Corporation. "These new products enhance our Windows Powered solutions for a number of critical market needs. Together with our existing products, our new initiatives in device driver toolkits, QA tools, Internet appliance software, rapid product design solutions, and remote device management, BSQUARE is again demonstrating unmatched leadership and commitment to the industry."

"BSQUARE has done an excellent job of extending the Windows Embedded Family and associated tools with rich, comprehensive applications and services," said Bill Veghte, vice president, Embedded and Appliance Platforms Group at Microsoft Corp. "With BSQUARE's end-to-end solutions, OEMs, network operators, Internet service providers and developers can rely on a comprehensive solution and top-notch engineering services to rapidly develop Windows Powered devices. We have enjoyed our long-standing relationship with BSQUARE and look forward to additional future success."

Intelligent devices comprise a rapidly growing class of computing devices in addition to the traditional desktop PC. Intelligent devices include web pads, set-top boxes, Windows-based terminals, automotive computers, industrial computers, and many more mobile, wireless and Internet-connected devices.

SmartBuild: Pre-packaged Device Foundations Provide Smart Start

to Building Devices

BSQUARE's new line of SmartBuild(TM) Product Design Packages provide a revolutionary new way to enable OEMs to build and begin manufacturing intelligent Windows Powered devices in as little as six weeks, rather than the customary 12 months. The SmartBuild product line includes packages for the rapid development of Windows CE-based:

-- portable data terminals

-- data collection tablets

-- Pocket PCs

-- cordless Internet appliances.

Each product design package provides a complete foundation of hardware design and software for the rapid development of a targeted device. Reference design schematics, all required printed circuit board layouts, a bill of materials, a fully developed software suite, and complete documentation are all included. Using just the SmartBuild Product Design Package, an OEM can build a base unit and begin production quickly. To complement the base functionality of these devices, BSQUARE can also bundle in software for customization, a custom user interface, remote updating, quality assurance, engineering services and more. The SmartBuild product line was in development by Mainbrace Corporation when it was acquired by BSQUARE in May, and is now complete and available to customers.

Platform Development: Tools are the Key to Developing a New Platform

Quickly, Cost-Effectively

For developers creating custom device types, BSQUARE offers two new platform development tools. Beginning with base device development, BSQUARE is now offering two new products: Time Critical eXtension(TM) for Windows NT 4.0 and Windows NT Embedded 4.0, and WinRT(TM) USB-NT.

BSQUARE's popular TCX for Windows CE 2.11 and later is now available for Windows NT 4.0 and Windows NT Embedded 4.0 to provide developers with real-time performance. TCX enables Windows NT to operate as a real-time control operating system. Plus, TCX does not require re-write of device drivers to obtain high performance. TCX adds the key performance ingredients for real-time control applications, including deterministic low latency interrupts, deterministic low latency timers and a flexible interrupt and timer priority scheme. TCX is an extension to BSQUARE's WinDK(TM) and WinRT(TM) driver development toolkits but also works with either binary drivers or drivers developed directly with the Microsoft Device Driver Kit (DDK). The affordable TCX makes Windows NT real time without rewriting the driver code. Developers now have the capability and flexibility to design high performance, real time device drivers for their Windows-based projects.

BSQUARE's new WinRT-USB enables application-level development of USB hardware control solutions on Windows 2000, Windows NT 4.0, Windows NT Embedded 4.0 and Windows 98 with a standard interface to USB hardware for Win32 applications. Additionally, WinRT-USB includes a Win32 API so developers are not limited to a single development environment. With WinRT-USB, developers can write application-level Win32 hardware control programs for their USB hardware that are portable across multiple Windows operating systems, reduce their development costs and speed time to market.

Applications: Providing Compelling End-User Software on an

Intelligent Device Adds Function, Value

Once the platform is complete, engineers often include software applications that are used by the device's eventual end-user. For OEMs who wish to include the popular voice over IP technology on a device, BSQUARE is introducing its new bInTouch(TM) voice over IP software developer's kit. This is the first voice over IP functionality available for Windows CE-based devices. With applicability in multiple devices such as AutoPCs, web pads, and even advanced digital set-top boxes, BSQUARE's voice over IP technology delivers an easy and convenient method for making voice contact over the Internet. The bInTouch Developers' Kit 1.1 is available now beginning at $1,995 for a single developer licensing fee. Per-unit royalties negotiated per volume quantity. bInTouch can also be integrated into a device on a custom basis by BSQUARE's professional engineering services group.

BSQUARE this week also introduced a family of applications that can be integrated into Windows CE-based devices, adding important technology that enhances the function of any device.

-- Instant messaging

-- IrDA data transfer

-- Faxing

-- E-mail

-- Scripting

-- Ghosting/backup

-- Device benchmarking

-- Custom launch menus

-- File compression & encryption

All BSQUARE applications are available for integration into intelligent devices on a custom engineering basis. Engineering services and per-unit royalties negotiated per project and per volume quantity.

Quality Assurance: Testing Devices is Essential to Market Success

During the development process, it is imperative that developers test devices early, often to avoid larger, more costly situations after device deployment. BSQUARE, the leading provider of quality assurance software for Windows CE-based devices, introduced this week three new products that fulfill BSQUARE's commitment to providing complete quality assurance solutions from development verification, platform test automation, application test automation, and manufacturing and deployment testing. BSQUARE's CEValidator family of solutions provide an end-to-end quality assurance to minimize total cost of ownership, enhance quality, and reduce time-to-market.

BSQUARE's new CEValidator PassPOINT(TM) v1.1 provides "sniff tests" to identify initial quality assurance on the "port," or adaptation, of Windows CE on a target device platform. PassPOINT empowers quality assurance engineers to perform regression testing, detect memory leaks, run stress tests and verify performance quickly. Used early in the development process, PassPOINT can detect problems to enable a smoother development process, less costly late-stage software rewrites, and provide a higher quality product. PassPOINT is available now.

BSQUARE's new CEValidator PassPORT(TM) v1.3, an upgrade to its existing CEValidator Platform Tester product, provides new automatic and manual test suites for Windows CE 3.0 APIs. PassPORT includes new test suites for OAL, ObjectStore, Power and real-time features of the Windows CE 3.0. BSQUARE's new CEValidator PassPORT is available now. Customers owning a previous version can upgrade for no charge.

In another upgrade, BSQUARE's CEValidator PassCODE(TM) v1.2 Application Tester adds new features to the current version of CEValidator Application Tester's automated GUI tester, test builder and application recorder functions. PassCODE enhancements add Visual Basic scripting and an import wizard for VB and VC++ projects. The new product is compatible with Windows CE 3.0 and supports automated application testing on embedded devices as well as configured platforms like the Pocket PC.

Pricing for CEValidator quality automation products begin at $5,000 per seat.

All on Display at the Embedded Systems Conference

BSQUARE will be demonstrating all of the new products in its booth at the Embedded Systems Conference. In addition, BSQUARE will also showcase recently announced products including:

-- RDA Remote Device Administrator, client/server software that

enables the remote updating and management of a virtually

unlimited number of intelligent devices based on Windows CE

and Windows NT Embedded

-- WinDK Extension for Bluetooth, software which enables

developers to integrate Bluetooth functionality into a device

-- MAX Wireless Software, which enables seamless wide area

network connectivity

-- WinDK Xpress Kit Suite for Windows CE 3.0, a comprehensive set

of production ready device drivers for targeted CPUs plus a

toolkit for creating custom device drivers

Technical presentations will be given in the BSQUARE booth throughout the day by BSQUARE experts and BSQUARE partners Motorola, National Semiconductor, Insignia Solutions, and Datalight. BSQUARE will also present an enterprise systems solution in the Microsoft Booth. BSQUARE can be found in booth No. 1345 and in the Microsoft Windows Embedded Partner Pavilion.

About BSQUARE

BSQUARE (Nasdaq:BSQR) is innovating tomorrow's devices through software, tools and technologies 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 embedded Windows-based devices available in the market today.

For more information, visit BSQUARE at http://www.bsquare.com or call 888/820-4500.

Note to editors: For product fact sheets, additional technical details, screen shots or other information, please visit the press section on www.bsquare.com or contact [e-mail].

BSQUARE is a registered trademark of BSQUARE Corporation. All names, product names, and tradenames are trademarks or registered trademarks of their respective holders. Pricing is subject to change without notice.

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 these products and services, 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 "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.