BSQUARE Will Be an Authorized Distributor of Microsoft Windows XP Embedded; BSQUARE to Offer Software Licenses, Development Tools, and Training.

Business Editors, High-Tech Writers

BELLEVUE, Wash.--(BUSINESS WIRE)--Nov. 28, 2001

BSQUARE Corporation (Nasdaq:BSQR), a Windows Embedded Partner (WEP) Gold-level member, today announced that it is an authorized distributor of the new Windows XP Embedded operating system from Microsoft Corporation.

BSQUARE will offer a wide variety of Windows XP Embedded products and services, including operating system software licenses, a professional development toolkit, developer training, and other support offerings.

Windows XP Embedded is the componentized version of the Windows XP operating system that enables rapid development of rich, reliable, and smart connected client devices. Windows XP Embedded is designed for use in a wide range of smart, feature-rich, connected devices such as thin clients, kiosks, ATMs, network devices, industrial automation devices, residential gateways, retail point of sale devices, and advanced set-top boxes.

"To decrease their time to market, OEMs look to companies like BSQUARE that have the engineering resources and skill to assist them in quickly developing their Windows Powered devices," said Keith White, senior director of marketing for the Embedded and Appliance Platforms Group at Microsoft Corp. "Being an authorized distributor of Windows XP Embedded, coupled with its broad array of products and services, allows BSQUARE to provide OEMs the solid foundation they need to rapidly create innovative new designs based on Windows XP Embedded."

"As the industry's leading value-add distributor and systems integrator of Microsoft Windows CE, BSQUARE can now offer its customers the most complete range solutions for the entire Windows Embedded family of operating systems," said Bill Baxter, president and CEO of BSQUARE. "We can immediately begin providing OEMs and developers with the information, training, and powerful development tools they need to streamline their end-to-end development process and create reliable and full-featured connected devices using Windows XP Embedded."

BSQUARE will offer training for Windows XP Embedded when the curriculum becomes available in December. The hands-on course will target OEMs and system integrators and will teach students the basic Windows XP Embedded building blocks and how to design, configure, and modify the XP Embedded operating system.

BSQUARE also plans to distribute Windows CE .NET (previously code named "Talisker"), a robust real-time embedded operating system that delivers the latest wireless and multimedia functionality to enable embedded developers to quickly bring to market smart, connected devices.

Windows Embedded Family

The Windows Embedded family of operating systems is an adaptable and scalable set of platforms for 32-bit connected devices that provide support for rich applications and services. Microsoft provides embedded technologies that can enable a broad range of intelligent connected device solutions -- from small, battery-operated devices to large-scale, mission-critical, dedicated server appliances.

Pricing and Availability

Operating system software licenses for Microsoft Windows XP Embedded are available immediately. Contact BSQUARE sales at [e-mail] or call 888/820-4500 for more information. Special promotions include bundled packages (http://www.bsquare.com/products/) and product training when available (http://www.bsquare.com/training/).

About BSQUARE

BSQUARE Corporation (Nasdaq:BSQR) is a global leader in providing solutions for smart devices in consumer, enterprise, industrial, and automotive markets. As a Windows Embedded Partner, Gold-level member for Microsoft, BSQUARE empowers the creation, connection, and management of Windows Powered smart devices through software, hardware, and service solutions. BSQUARE has an extensive product portfolio of software development and quality assurance tools, device and device management software and complete end-to-end managed device solutions. BSQUARE provides critical engineering services including device development, quality assurance, and system integration as well as services for managing client devices deployed into the market. 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.