Top Electronics Firms Matsushita, Philips, National Semiconductor Incorporate BSQUARE's New Information Appliance Design Kit.

Business/High Tech Editors

WINDOWS EMBEDDED DEVELOPERS CONFERENCE

LAS VEGAS--(BUSINESS WIRE)--Feb. 6, 2001

BSQUARE's new iWin(TM) Information Appliance Design Kit will power

portable Web tablets, Internet LCD TV, Web terminals

and other information appliances

Electronics firms including Matsushita Electric Industrial Co., Ltd., Philips Components, and National Semiconductor along with Sageport, a managed appliance provider, are already adopting BSQUARE's new iWin Information Appliance Design Kit into Internet-based devices of all types, BSQUARE Corporation (Nasdaq:BSQR) announced today.

BSQUARE's new iWin Information Appliance Design Kit is the first product to provide a complete collection of tools and software for creating a Web access device of any kind. Through these agreements, BSQUARE's new infrastructure product will power a variety of appliances aimed at high volume consumer and enterprise markets.

Information appliances need certain software to enable viewing of video with Windows Media player, for example, and a `look and feel' appropriate for the end user of the device. OEMs require a way to update devices without the time and expense of recalling them to the factory. BSQUARE's new iWin provides the ideal solution. With the iWin Information Appliance Design Kit, developers can create a customized "look and feel," for a device, provide remote update capability, enhance the browser technology, and enable end-users to access critical Web content such as video files or .pdf documents. When combined with BSQUARE's existing infrastructure for building information appliance systems, iWin essentially provides an "information appliance in a box" that device manufacturers can customize and ship to market quickly.

"BSQUARE is proud that these and many other world-leading manufacturers are relying on BSQUARE's infrastructure solutions to quickly develop information appliances," explained Jeff McLeman, Vice President of Product Development at BSQUARE. "The rapid adoption of iWin is validation that our product is providing a much-needed software solution in the exploding market for information appliances. iWin is a flagship product in our complete infrastructure system of solutions for information appliances, and we are pleased that it is already experiencing high demand."

Matsushita Electric Industrial Co., Ltd. (MEI), best known for its Panasonic brand products, has licensed iWin for use in their recently announced Internet LCD BS Digital TV device. A longstanding customer of BSQUARE, Matsushita realized the benefits of iWin early on and was quick to incorporate it into their design. With iWin, they were able to easily produce a user interface appropriate for the Japanese market. iWin's bundling of the user interface, Web content file support, and remote update technologies saved Matsushita the time and expense of individually researching and licensing the many components they needed.

Under a memorandum of understanding with Philips Components, Philips intends to incorporate the technologies now included in iWin in their new Windows-based Net Display Modules that enable OEMs to create the world's thinnest, lightest Web tablets, information displays, kiosks and thin clients. "When it comes to Internet appliances, only BSQUARE offers the critical software technologies we need to complete our Windows-based Net Display Modules," said Amir Shademan, director of marketing of Philips Components' Net Displays Group. "Their top quality software and engineering expertise are helping us complete development and deliver our product to market, with the functionality that fully satisfies our customers requirements."

National Semiconductor has licensed a demonstration version of iWin for inclusion on its Geode(TM) WebPAD(TM) and thin client reference designs, enabling National partners to quickly bring products and services to market. "Our OEMs rely on National's reference designs and our partners for fast time-to-market development solutions, and BSQUARE is one of our prime partners," said Michael Polacek, vice president of National's Information Appliance group. "We are providing BSQUARE's iWin on our reference design as a world class, convenient solution that helps our customers get to market faster, with the technology they need for a successful information access device."

Sageport, based in Bellevue, WA, creates and administers customized end-to-end Internet appliance solutions that enable businesses to fully leverage their existing Internet assets by bringing seniors and other novice users online. BSQUARE's iWin technology provides Sageport with the framework to easily create custom, dynamic user-interface designs and to integrate additional functionality into their browser software. BSQUARE's Remote Device Administrator also allows Sageport to remotely manage and support Internet appliances to further enhance customer relationship management for their clients. "The flexibility of BSQUARE's Internet appliance software will play a major role for Sageport as we and our corporate customers open the Internet to millions of Americans currently offline," said Sageport CEO, Brian Deutsch.

About BSQUARE

BSQUARE (Nasdaq:BSQR) is innovating tomorrow's devices through software solutions 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 handheld computers, set-top boxes, web pads, Internet appliances, industrial automation devices, Windows-based terminals, and other mobile and wireless intelligent computing devices. From development tools to software infrastructures to end-user applications, the BSQUARE touch is on many intelligent Windows-based devices available in the market today. For more information, visit BSQUARE at http://www.bsquare.com or call 888/820-4500.

BSQUARE is a registered trademark of BSQUARE Corporation. All other 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 the 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 "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.