Bellevue, WA and Morgan Hill, CA (04/03/07) —- Corvalent, a pioneer in the design and manufacture of long-life Intel®- processor-based motherboards and systems for vertical market applications and BSQUARE (Nasdaq: BSQR), the Microsoft Windows Embedded Systems Integrator of the Year for 2006, have partnered to enable Corvalent to deliver complete Microsoft Windows Embedded-based software solutions for Corvalent’s North American OEM customers.

Corvalent and BSQUARE, two best-of-breed companies that are also Intel®Communications Alliance Affiliate members, will collaborate to enable Corvalent to create turnkey medical, security, industrial automation, and retail system solutions. BSQUARE will develop and test Microsoft Windows Embedded system software, applications and user interface solutions. Corvalent will integrate the BSQUARE software with its hardware for its industrial and embedded designs.

“Our new strategy will enable our customers to receive high-quality, reliable turnkey Windows Embedded systems while increasing our software integration capabilities through this partnership,” said Ed Trevis, president and CEO, Corvalent. “By combining Corvalent’s knowledge of building long-life Intel-processor-based single board computers and motherboards with BSQUARE’s expertise in Windows Embedded, Corvalent’s customers will benefit from higher-value Windows Embedded-based solutions.”

“Partnering with Corvalent is part of BSQUARE’s broader channel strategy in which BSQUARE partners with hardware manufacturers serving specialty markets who want to create and deliver complete Windows Embedded solutions. Leveraging BSQUARE’s engineering services, software products, and licensing enables these companies to grow their businesses,” said Brian Crowley, president and CEO, BSQUARE.

“Corvalent’s customers will benefit from BSQUARE’s expertise in the Windows Embedded platform,” said Ilya Bukshteyn, director of Windows Embedded Marketing at Microsoft Corp. “As a valued part of the Windows Embedded ecosystem, BSQUARE is an ideal industry partner to integrate Windows XP Embedded, Windows Embedded for Point of Service and Windows Embedded CE into Corvalent solutions.”

About Corvalent

Founded in 1993, Corvalent is the only embedded computing design and manufacturing provider to deliver long-life products, long-term cost savings and lasting relationships with customers, partners and employees. Corvalent is the only provider to deliver ten year product longevity.  Corvalent’s x86 platform has a proven track record of providing robust Intel-based solutions for industrial applications, including oil and gas, industrial automation, defense/military, automotive, mobile/rugged, security and surveillance, and medical applications.  As a single source delivering industrial design through full-scale manufacturing, Corvalent offers flexibility and growth through turnkey solutions, including rack mounted systems, mobile/handheld devices, embedded motherboards, embedded systems, and industrial display systems.

About BSQUARE

BSQUARE is a software 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. For more information about BSQUARE, visit www.bsquare.com.

Corvalent and BSQUARE are Affiliate Members of the Intel Communications Alliance, a community of communications and embedded developers and solution providers. Intel has been providing silicon with life-cycle management to the embedded market for 30 years. For more information, please visit www.intel.com/go/ica.