BSQUARE Regains Full NASDAQ Compliance

Market Wire, December, 2004

BSQUARE Corporation (NASDAQ: BSQR) today announced that it has received notification from The NASDAQ Stock Market stating that the company has regained compliance with the NASDAQ National Market $1.00 minimum bid price continued listing requirement.

About BSQUARE

BSQUARE is a leading global provider of software, engineering services and consulting for the smart device market. Since 1994, BSQUARE has provided world-class device makers with the building blocks necessary to design, develop, and test innovative products quickly and cost effectively. A sample of BSQUARE customers includes Motorola, Hewlett-Packard, Texas Instruments, NEC, Sierra Wireless, HTC, Microsoft and others. BSQUARE is one of Microsoft's largest value-added partners worldwide for Windows Embedded software, a Gold-level Systems Integrator of the year and a leading Windows Mobile solutions provider for Smartphone and Pocket PC. BSQUARE is a Texas Instruments-licensed Independent OMAP(TM) (Open Multimedia Application Platform) Technology Center. The company's SDIO Now! technology has been adopted by over 75 top-tier smart device makers. For more information, visit BSQUARE at www.bsquare.com or call 888-820-4500.

BSQUARE is a registered trademark of BSQUARE Corporation. All other product and company names herein may be trademarks of their respective owners.

Contact: BSQUARE Corporation Scott Mahan, CFO (425) 519-5900 investorrelations@bsquare.com