WinDK Extension for Bluetooth Now Shipping With Qualified Bluetooth Software Stack.

Business/High-Tech Editors

BELLEVUE, Wash.--(BUSINESS WIRE)--Sept. 21, 2000

WinDK Extension for Bluetooth Now Available

to Provide Seamless Integration of Bluetooth

Capabilities On Windows-based Intelligent Devices

BSQUARE Corporation (Nasdaq:BSQR) is now shipping its WinDK(TM) Extension for Bluetooth(TM) with a fully qualified Bluetooth Software stack.

The WinDK Extension for Bluetooth is a new addition to BSQUARE's portfolio of wireless solutions for the intelligent device market. With WinDK Extension for Bluetooth and the Bluetooth Software stack, developers can seamlessly attach any Bluetooth hardware to a supported Microsoft(R) Windows(R) operating system. Developers will receive the confidence that the Bluetooth software conforms to the worldwide Bluetooth standards.

"Bluetooth wireless technology promises to dramatically change the way intelligent computing devices communicate with one another," said Paul Lever, director of BSQUARE's Platform Technologies Group. "BSQUARE is proud to be on the leading edge of this Bluetooth technology. Our new Bluetooth tools will help developers rapidly develop and deploy their Bluetooth-solutions enabling them to participate in the rapid growth of the Bluetooth market. Additionally, because our Bluetooth stack is qualified by the Bluetooth Special Interest Group, developers are assured of receiving a tested, proven, standards-based solution."

Bluetooth wireless technology is a de facto standard and specification for small-form factor, low-cost, short-range radio links between mobile PCs, mobile phones and other portable devices. The Bluetooth standard is aimed at enabling a wide variety of devices to exchange digital voice and data over short distances. According to Allied Business Intelligence (ABI), the steady growth of devices communicating via Bluetooth technology will grow to over 1.4 billion by 2005 compared to just 56 million next year. However, Bluetooth's scope of adoption is not limited to these devices; the first Bluetooth-enabled devices are due to become generally available in the fourth quarter of this year and Bluetooth transceivers embedded in everything from PC equipment to industrial control devices will begin appearing in the market in 2001. The WinDK Extension for Bluetooth and Bluetooth stack provide the solutions needed by Bluetooth developers in these new and rapidly growing markets.

About WinDK Extension for Bluetooth

BSQUARE is the first company to market a complete Bluetooth solution for integrating any Bluetooth hardware with Microsoft Windows operating systems. Using BSQUARE's WinDK Extension for Bluetooth and its qualified Bluetooth Software stack, developers can greatly reduce their development time and time to market for their Bluetooth enabled devices.

Qualification of the Bluetooth Software stack by the Bluetooth Special Interest Group (SIG) also ensures compatibility of the Bluetooth stack with worldwide Bluetooth technology standards and interoperability with other devices using Bluetooth technology. The Bluetooth stack is an adaptation of the widely used Digianswer Bluetooth Software stack and is one of three elements comprising a full-featured, fully qualified Bluetooth software suite. Other elements include Bluetooth applications and Bluetooth implementation profiles.

"Combining Digianswer's expertise in Bluetooth with BSQUARE's extensive device driver tools product line brings a compelling product to the market," said Thomas Kjaer Nielsen, Manager, PC Software Development, Digianswer A/S. "This combined technology will radically increase the rapid deployment and acceptance of Bluetooth."

The WinDK Extension for Bluetooth toolkit and its Bluetooth Software stack contain a set of driver development tools and Bluetooth software for creating high performance drivers and for seamlessly integrating any Bluetooth hardware on Microsoft Windows 2000. Support for Windows NT 4.0 and Windows NT Embedded, Windows CE, Windows Millennium and Windows 98 will be in an upcoming release. The toolkit leverages the code in WinDK and contains a code generation wizard, header files, libraries and samples. The Wizard generated code targets Bluetooth hardware on PC cards, USB, PCI, and Generic Internal (including ISA) buses, as well as a layered approach for handling other transports such as RS-232. In addition, the WinDK Extension for Bluetooth and its Bluetooth Software stack frees developers to deal with hardware interfaces, rather than having to develop complex protocol code, as well as enabling these developers to use their existing Win32 applications.

Price and Availability

The WinDK Extension for Bluetooth is available immediately. The estimated price is $14,995.00 USD and run-time royalties are negotiated per unit. A product subscription program that provides CD updates, additional high priority product technical support, provided by device driver engineers and developers, is also available.

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 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.

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.