"Bluetooth is powerful new technology that we anticipate will be adopted by developers of many different types of computing devices," stated Paul Lever, director of Platform Technologies for BSQUARE. "Our WinDK product has had great success because it significantly reduces the development time and time to market for hardware and software developers. By adding this extension to the existing library code of WinDK, developers wanting to add Bluetooth capabilities will be able to spend much less time dealing with complex operating systems issues such as Plug and Play and Power Management and spend more time bringing their Bluetooth solutions to market."

The Bluetooth Extension to WinDK consists of a set of driver development tools for seamlessly integrating Bluetooth hardware on Microsoft Windows operating systems, including Windows 2000, Windows NT(R) 4.0, Windows NT Embedded and Windows 98. Support for Windows CE will be in an upcoming release. The Bluetooth Extension to WinDK allows developers to leverage the tested Digianswer stack to enable any Bluetooth hardware on a Windows platform.

Additional features of the Bluetooth Extension include:

-- Supports the development of hardware drivers for USB, PCI and PCMCIA buses, as well as serial interfaces

-- Enables hardware developers to use other supported bus types with no unnecessary restrictions

-- Supports access to the hardware using any combination of Port I/O, Memory I/O, interrupts and DMA.

The Bluetooth Extension to WinDK contains two important driver samples: a Hardware Driver sample for the Digianswer Bluetooth Demo PC Card and a Protocol Driver Sample. The Hardware Driver sample contains a console (DOS prompt) user-mode test application that exercises the driver's upper-level interface. The sample demonstrates the basic NT/WDM hardware features such as Port I/O, Memory I/O, and interrupt processing. This sample is source-code compatible for Windows NT, Windows 2000 and Windows 98.

The Protocol Driver Sample contains a console user-mode test application that exercises the driver's upper-level interface. This sample demonstrates the use of the protocol driver lower-level interface (L2CAP's upper-level interface), the use of a driver-specific upper-level interface and basic NT/WDM layered driver features such as building and sending IRPs and completion processing.

Price and Availability

Beta release of the Bluetooth Extension to WinDK is available immediately and final release will be available early summer through BSQUARE and authorized distributors worldwide for an estimated price $14,995.00 USD.

About Bluetooth

The Bluetooth wireless technology is a specification for a small form factor, low-cost radio solution providing links between mobile computers, mobile phones and other portable devices for the transmission of voice and data in real-time. The use of radio transmissions enables Bluetooth to replace the proprietary cables used today. Bluetooth is led by a consortium of leaders in the telecommunications and computing industries, including Microsoft, Ericsson, 3-Com, Lucent Technologies, Motorola and more, that are driving development of the technology and bringing it to market. Additional information on Bluetooth wireless technology is at http://www.bluetooth.com.

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.

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