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BSQUARE Builds Momentum with OEM Customers for Windows XP Embedded; Bally Gaming and Other Leading Device Makers Leverage BSQUARE Expertise

08/23/04 at 9:01 am EDT

BELLEVUE, Wash.--(BUSINESS WIRE)--Aug. 23, 2004--BSQUARE (Nasdaq:BSQR) today announced significant momentum for its solution offerings for Microsoft Windows XP Embedded, with a substantial increase in overall market demand arising from OEMs for Windows XP Embedded-related services and licensing. Demand has grown as companies are planning to migrate from classic versions of Microsoft embedded operating systems, as well as from OEMs evaluating Windows XP Embedded versus Linux.

"The market is beginning to see considerable growth and momentum of devices running Windows XP Embedded, particularly thin clients, point-of-sale terminals, gaming devices, kiosks, and ATMs," said Chris Lanfear, senior analyst, Venture Development Corporation. "OEMs are increasingly choosing the adaptability and scalability of Windows XP Embedded-related services to get their devices to market faster. We expect the upcoming release by Microsoft of Windows XP Embedded Service Pack 2 to stimulate further market demand."

"In Q2 alone, we experienced a 200% increase in the delivery of 'Windows XP Embedded JumpStart' service packages and a 55% increase in the number of toolkits sold," said Tracy Rees, senior vice president of sales, marketing and international operations at BSQUARE. "These are both leading indicators for downstream Windows XP Embedded-related product and service opportunities and further proof of our market position as the trusted partner for Windows Embedded smart device solutions."

BSQUARE provides a comprehensive suite of Windows XP Embedded-based solution offerings for OEMs throughout the device development lifecycle, including Microsoft Windows Embedded Studio toolkits and operating system licenses, JumpStart services, Microsoft-certified training, Sygate endpoint security solutions and technical support. OEM customers, such as Bally Gaming, have leveraged the company's Windows XP Embedded JumpStart service to get to market rapidly with an optimized solution. Through the service, BSQUARE's engineering experts port the customer's applications to Windows XP Embedded and then deliver a componentized image.

"Because we're the leading provider of gaming industry solutions, our casino customers expect reliable and sophisticated video slot machines," said Jim Morrow, vice president of advance development, Bally Gaming. "When BSQUARE customized a Windows XP Embedded-based video slot machine image for us, they succeeded in reducing the memory size by 30%, which dramatically improved performance and boot time - all in very short order. BSQUARE's technical expertise and support raises the bar for everyone else."

"By enabling our mutual customers to identify high-quality solutions and services, Windows Embedded Gold-level Partners, like BSQUARE, are key in driving momentum for Windows XP Embedded," said Jane Gilson, group product manager of the Mobile and Embedded Devices Division at Microsoft Corp. "Windows XP Embedded combines key features with the power, reliability, compatibility and integration of the Windows XP platform. This translates into lower life-cycle costs, rapid deployments, and decreased maintenance and hardware acquisition costs."

About BSQUARE's Windows XP Embedded Solutions

BSQUARE offers products and services at every stage of the device development cycle to help OEM's get their smart devices to market faster. The offerings include consulting and engineering services, Microsoft licensing, Sygate Security Software, training and technical support. To learn more about BSQUARE's solutions for Windows XP Embedded visit .


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, Vodafone U.K., 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 65 top-tier smart device makers. For more information, visit BSQUARE at or call 888-820-4500.

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             Scott Sedlik, VP of Marketing, 425-519-5900
             Communique Public Relations
             Colleen Moffitt, 206-282-4923