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DATE 2005-09-01

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DATE	2005-09-14
FROM	swd
SUBJECT	Subject: [NYLXS - HANGOUT] BSQUARE Announces SDIO Now! Linux Product
First Customer Will Use BSQUARE Technology to Enable SDIO Wi-Fi Cards Bellevue, WA â€“ September 14, 2005 â€“ â€“ BSQUARE (Nasdaq: BSQR), a leading provider of smart device solutions, today announced the availability of SDIO Now! for Linux. SDIO Now! is a software stack that enables the use of MultiMediaCard (MMC) and Secure Digital (SD) memory cards for storing pictures, video, and data as well as the use of Secure Digital Input/Output (SDIO) peripheral devices such as digital cameras, GPS receivers, Wi-Fi cards, and RFID readers on mobile devices. This announcement is significant as BSQUARE has historically only provided its SDIO product for devices running Windows CE and Windows Mobile operating systems. â€œWe are pleased to announce that our first customer, a Taiwanese semiconductor manufacturer, will use SDIO Now! to enable SDIO Wi-Fi cards for Linux devices,â€ said Brian Crowley, president and chief executive officer of BSQUARE. The expansion of our SDIO product line is an important part of our overall strategy to diversify our revenue stream with proprietary software products which will not only help to grow overall revenue but also expand gross margins. BSQUARE expects SDIO Now! for Linux to begin to contribute meaningfully to revenue and operating margins in mid-2006 after customers incorporate the product in their device designs. â€œWe believe that by offering SDIO Now! for Linux, BSQUARE is effectively doubling the potential addressable market for our SDIO stack, and we expect this product line addition to increase our SDIO Now! revenue accordingly,â€ said Pawan Gupta, Vice-President of Products, BSQUARE. â€œTwice as many device users will now potentially benefit from our technology, one that has been successfully field tested for more than two years in Windows Mobile devices.â€ BSQUAREâ€™s SDIO platform enables customers to offer high performance expansion solutions, to stay current with the ever-changing requirements of higher density memory cards, and to provide advanced security capabilities for mobile devices. SDIO Now! also eliminates the need for engineers to develop individual drivers for each device thereby reducing time to market and development costs. â€œWe believe that the prospects for our SDIO product line have increased significantly given this announcement and the collective forecast for growth in the converged device marketplace,â€ Crowley continued. According to IDC, a leading provider of global IT research and advice, Microsoft Windows Mobile and Linux were used in 13% and 11%, respectively, of the 22 million converged mobile devices shipped in 2004. Converged devices, or smartphones, typically support secure digital storage cards and secure digital I/O functionality. IDC forecasts that Microsoft Windows Mobile and Linux will be used in 34% the projected 167 million converged devices forecasted to ship in 2009. About BSQUARE BSQUARE is a solution provider to the global embedded device community. Committed to delivering quality, lowering project risk and time to market, our teams collaborate with smart device makers at any stage in their device development. Our solution portfolio includes software and hardware development, systems integration services, reference designs, board support packages, middleware, and applications. As a full service provider, device makers can also license best-in-class software products and operating systems. Since 1994, BSQUARE has completed hundreds of successful projects and has become a trusted partner to smart device makers worldwide. BSQUARE is a registered trademark of BSQUARE Corporation. Other product or service names mentioned herein are the trademarks of their respective owners.