BSQUARE Solutions Help Power New MSN Companion By eMachines

Business Wire, Oct 9, 2000

Business/High-Tech Editors

BELLEVUE, Wash.--(BUSINESS WIRE)--Oct. 9, 2000

eMachines Relies On BSQUARE to Provide Technology,

Assist in the Development of New Internet Appliance for Consumers

BSQUARE Corporation (Nasdaq:BSQR), a world leader in providing products and services for the development and deployment of intelligent computing devices, provided a comprehensive set of software solutions to help power the new MSN Companion by eMachines, announced today by MSN and eMachines, Inc. (Nasdaq:EEEE).

The MSN Companion by eMachines is a home Internet appliance that makes it simple for users to get online, surf the Internet and communicate with others. BSQUARE licensed intellectual property and provided a host of engineering services during the development phase of the project.

"This is an example of how next generation Internet appliances enhance the Internet experience," said William Baxter, president and CEO of BSQUARE. "BSQUARE worked closely with eMachines and MSN to put together a powerful intelligent computing device solution perfect for consumers who would like instant Internet access. When you combine the ease and familiarity of Windows with simple Internet access you have a very versatile tool that delivers on the Internet's promise of `information, anywhere, anytime.' Our innovative technology and full service solutions reduced development costs, significantly increased product functionality, and helped deliver this exciting new product to market in a short period of time."

eMachines is the third largest vendor of desktop PCs sold through U.S. retailers. eMachines' MSN Companion device will provide consumers with an easy, affordable and personal experience on the Web as well as a way to communicate with others via the Internet. The eMachines device, designed for consumers who are new to using e-mail and the Internet, will power on instantly, access the Web using the MSN Internet Access service, and automatically connect users to the best-of-breed services from MSN such as the MSN Hotmail(R) Web-based email service, MSN eShop and MSN Search, while providing users with full access to the entire Web. The MSN Web Companion by eMachines is based on the Windows CE operating system.

For eMachines, BSQUARE delivered a portfolio of solutions for the development and additional functionality of the device, including:

-- Licensing of BSQUARE's CE Xpress Kit

-- Software engineering services to adapt the Windows CE operating system to
the eMachines platform

-- Software engineering services to develop several custom device drivers,
including drivers for the serial port, display, audio, storage device, USB
mouse, and others

-- Licensing of Java Virtual Machine technology from BSQUARE partner Insignia
Solutions

-- Software engineering services to integrate the JVM technology with the
eMachines platform

-- Custom quality assurance services.

"When we decided to base our Internet appliance on the Windows CE operating system and the MSN Companion platform, we came to BSQUARE for the additional technologies and services we needed," said Stephen Dukker, president and CEO of eMachines, Inc. "BSQUARE is the leader in the industry when it comes to software and integration of Windows-based intelligent computing devices, and their technologies for Windows CE and knowledge of Internet appliances made the choice easy. We're pleased to incorporate BSQUARE solutions into our exciting new Internet appliance."

In addition to the products and services provided to eMachines, BSQUARE provides a full line of solutions for rapidly developing Internet appliances such as:

-- SmartBuild(TM) turnkey design solutions for multiple device

types, including web pads, web phones, Pocket PCs and more

-- In-demand applications such as bInTouch(TM) Voice Over IP and

BSQUARE Messenger instant messaging

-- Customized user interface (UI) design services

-- Design Verification and Manufacturing Test through its

CEValidator test products

-- Remote device management and update software.

According to International Data Corporation, Internet appliances will exceed PC shipments by 2004. By 2002, IDC anticipates that Internet appliance shipments will leap to almost 42 million units.

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 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. eMachines is a trademark of eMachines, Inc. All other names, product names, and tradenames are trademarks or registered trademarks of their respective holders.