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BSQUARE and Insignia Team to Deliver Jeode Java Solution to Developers of Windows Powered Intelligent Computing Devices

BSQUARE to include Java technology in product and service offerings

BELLEVUE, WA, February 14, 2000 - To fulfill demand for an accelerated Java solution in the market for Internet-enabled intelligent computing devices, BSQUARE Corporation (Nasdaq: BSQR) and Insignia Solutions (Nasdaq: INSGY) announced an agreement today in which BSQUARE will distribute Insignia's Jeode platform to developers of devices based on the Windows(r) Embedded family of operating systems.

"BSQUARE is Microsoft's premier porting partner and has an unmatched reputation in the Windows CE and Embedded NT systems integration business," said Mark McMillan, senior vice president of worldwide sales and marketing for Insignia Solutions. "We are very pleased that they have joined the Insignia team to make the Jeode platform the accelerated Java solution of choice for Internet appliance developers using Windows CE and Embedded NT. By combining BSQUARE's global sales organization and world class system integration capabilities with Insignia's high performance Java solutions for Windows CE and Embedded NT, we are well-positioned to play a significant role in the rapidly growing Windows-based intelligent computing device market."

"Java as a technology is an important component in the future of intelligent computing devices," said William Baxter, president and CEO of BSQUARE Corporation. "Many of our customers are seeking to incorporate Java capability in Windows powered devices without the heavy overhead of Java virtual machine technology or full Internet browsers. We tested Insignia's Java solution and found it to be several times faster and much smaller in memory footprint than other solutions. We are pleased to be adding their technology to our comprehensive product line for the development of intelligent computing devices."

The Jeode Platform Adds Java Functionality to Internet-Enabled Intelligent Computing Devices

Insignia's Jeode platform allows developers to create applications for Internet-enabled intelligent computing devices using Java technology. It is comprised of two primary components: the development tool suite and runtime environment. The Jeode development tool suite allows software developers to use Java technology as the foundation for reliable, efficient and predictable Internet-enabled intelligent computing devices. The Jeode runtime environment consists of the highly-configurable Embedded Virtual Machine(tm) (EVM(tm)) and embedded class libraries, including AWT. The Jeode EVM was the first independently-developed virtual machine to pass Sun Microsystems' required compatibility tests to earn the distinction of "Sun Authorized Virtual Machine," signifying full compatibility with the PersonalJava (tm) platform and EmbeddedJava(tm) technology specifications.

The Jeode platform employs Insignia's patented adaptive dynamic compilation and precise concurrent garbage collection technologies to achieve an optimal balance of accelerated performance and robustness in a small memory footprint.

There are several advantages to OEMs seeking to enhance the functionality of their intelligent computing devices with Java technology. By including Jeode's Java solution, OEMs will be able to deliver a Windows powered device that enables end-users to access rich web sites using Java technology. Additionally, the small footprint of the technology will save precious ROM space in any Windows NT Embedded or Windows CE-based device.

BSQUARE will offer the Jeode platform to customers as a component of product and service offerings. Initially, BSQUARE will port the Jeode platform to targeted Windows CE-supported microprocessors. BSQUARE will also license and integrate the technology as a component as requested in any custom adaptation and software development projects for original equipment manufacturers (OEMs) designing Windows powered computing devices. In the future, the Jeode technology will be offered as a component in BSQUARE products, such as software development kits for web pads, interactive television set-top boxes, and Windows-based Terminals.

The Market for Internet-Enabled Intelligent Computing Devices Internet appliances include digital set-top boxes, web phones, smart phones, wireless PDAs, Internet-enabled gaming devices, and automotive Internet access devices. International Data Corporation (IDC) estimates that the number of Internet appliance devices shipped will grow from 11 million in 1999 to more than 89 million in 2004. In addition, IDC estimates that total revenue for the Internet appliance market during this time period will grow from $2.4 billion in 1999 to $17.8 billion by 2004, and that Internet access devices will surpass consumer personal computers in shipments by 2002.

Many of these products will be Windows-powered. Some of the companies that have announced that their products will be based on either Windows CE or Embedded NT include AT&T, Boundless Technologies, Compaq Computer Corporation, Hewlett-Packard, Harris Corporation, Honeywell, National Semiconductor, Network Computing Devices, NTT Data Corp, Siemens AG, Symbol Technologies, Telxon Corporation, Total Control, Unisys, WebTV and others.

About BSQUARE
BSQUARE Corporation (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 is a supplier of software products and services for 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 further information contact BSQUARE at 888-820-4500 or visit http://www.bsquare.com.

About Insignia Solutions
Insignia Solutions is the leading provider of accelerated Java solutions that dynamically optimize the use of available system resources. The Jeode platform is Insignia's accelerated implementation of Sun Microsystems' (NASDAQ:SUNW) PersonalJava(tm) and EmbeddedJava(tm) specifications tailored for Internet appliances and embedded devices. At the core of the Jeode platform is the Sun-authorized Embedded Virtual Machine(tm) (EVM(tm)), an accelerated runtime engine that delivers an optimal balance of performance and predictability in a smaller memory footprint. Using a proprietary techique called adaptive dynamic compilation, the Jeode EVM can execute Java applications on average six times faster than interpretive VMs.

For additional information on Insignia and its products, call 800/848-7677 or visit http://www.insignia.com.

BSQUARE Corporation Insignia Solutions
Michelle Manson Gary M. Katz
Corporate Communications Public Relations
(425) 519-5900 (510) 360-3820
press@bsquare.com gary.katz@insignia.com

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, factors that may affect BSQUARE's ability to complete work under contract, 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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