New Tool from BSQUARE Enables Unique Interface Creation For Windows CE-based Devices.

BELLEVUE, Wash.--(BUSINESS WIRE)--Dec. 6, 1999--

--Developers can use BSQUARE's new interface design tool to create

a device "look and feel" completely different from the standard

Windows CE desktop interface--

BSQUARE Corporation (Nasdaq:BSQR) released the newly updated CE Interface Composer, the world's first user interface design tool for developers of intelligent computing devices based on the Windows(R) CE operating system.

BSQUARE's CE Interface Composer design tool saves developers substantial engineering time and expense normally required when developing a custom user interface.

"Windows CE includes the standard Windows "look" in the operating system. While that is appropriate for Handheld PCs, it may not be the desired look for other intelligent computing devices such as information kiosks, screen phone or other intelligent computing devices," stated David Bialer, general manager of BSQUARE. "For information kiosks, for example, interface designers may not want the Windows folder approach, and instead opt for large touchscreen buttons. Developers can either develop this look from scratch, or reduce time and expense by using our tool instead. CE Interface Composer works in concert with Windows CE to give the developers ultimate flexibility in designing a user look and feel perfect for their device function."

"BSQUARE's new CE Interface Composer is an new way to design custom user interfaces and that will speed up the development time and reduce development costs," said Tony Barbagallo, group product manager at Microsoft Corp. "Microsoft is working to help ensure that the Windows CE platform enables independent software vendors and original equipment manufacturers to continuously create innovative tools, applications and devices."

CE Interface Composer Delivers a Fast, Easy Solution for a Time-Consuming Task: Interface Development

Developers of Windows CE-based devices currently have three interface development options: Microsoft's standard Windows shell supplied with Platform Builder 2.12, a custom shell the developer creates from scratch, or a custom shell the developer creates using CE Interface Composer. CE Interface Composer expands the developer's choice beyond the standard Windows look to create unique function focused interfaces in a fraction of time it would take to develop from scratch. This allows a significant time to market advantage and at the same allows the designer to clearly differentiate their product offering.

The unique COM object model approach with loosely coupled components offers the developer a quick-start kit for interface development. Using a simple scripting language, the developer can create virtually any interface desired. Key features include:

-- New SKINS support, where any bitmap image can become a device

interface providing absolute control over appearance

-- New plug-in for IE 4.0 browser control, adding Internet browsing

support and unique browser creation

-- Completely COM-based design, delivering improved modularity and

extensibility

-- Ability to integrate custom COM objects

-- A simple configuration language for rapid interface development

-- Support for multiple user configurations on the same device,

enabling the same device to feature different "personalities" for

different types of users

-- Full control over all user options with password security and

administration mode

-- Compatibility with Windows CE 2.11 and 2.12 operating system

Several BSQUARE customers, including MPower Corporation, a company specializing in the development of Windows CE-based information appliances, are already using pre-release versions of CE Interface Composer. "Without CE Interface Composer, our new smart handheld device would definitely not be on the fast track to market," stated Dr. Husam Kinawi, Chief Technical Officer of MPower Technologies Inc. "The interface development is progressing quickly and smoothly thanks to CE Interface Composer. Original equipment manufacturers (OEMs) and developers seeking to create specialized applications for targeted Windows CE-based intelligent computing devices should consider using CE Interface Composer for interface development due to its ease of use and potential cost and time savings."

CE Interface Composer is the significantly upgraded version of BSQUARE's predecessor, CE EmbeddedDesktop(TM). As with any device development project, Microsoft Platform Builder is also required when using CE Interface Composer.

Price and Availability

CE Interface Composer is available from BSQUARE and authorized distributors worldwide for $995. This price includes a single user license plus 250 runtime licenses. BSQUARE also provides a host of other Windows CE products and services for developers of intelligent computing devices, including CE Xpress(TM) platform development kits, CEValidator(TM) automated quality assurance tool, custom engineering services, Windows CE licensing, Windows CE training, Microsoft Platform Builder, industry-specific solutions, and more.

About BSQUARE

BSQUARE (Nasdaq:BSQR) is a dynamic software company working with Fortune 500 companies to enable the age of intelligent computing devices. Specializing in Windows CE and Windows NT Embedded, BSQUARE supplies software products and services for the development and use of PC Companions, Internet appliances, industrial automation devices, Windows-based terminals, and other intelligent computing devices. BSQUARE's expertise in embedded Windows is derived from years of contributing to the development of the Windows CE operating system, from serving as a Microsoft preferred provider of Visual Tools for Windows CE, and from in-depth experience with Windows NT. BSQUARE is a Microsoft-sanctioned systems integrator and distributor.

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 adverse changes in BSQUARE's relationship with Microsoft, a decline in the market for Windows CE-based intelligent computing devices or the failure of such market to develop as anticipated, delays or announcements of delays by Microsoft of Windows CE 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.