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BSquare to Acquire New Telematics Technology With Purchase of InfoGation

March 11, 2002

BSquareCorporation announced March 11 the acquisition ofprivately-held InfoGation Corporation in a cash and stock transactionvalued at approximately $8 million.

InfoGation is a company in the development ofon-board and handheld vehicle navigation systems, one of the larges smart device market segments. With thisacquisition, BSquare will increase its presence in the telematicsmarket with a new line of product and service offerings, according to the company.

InfoGation will become a wholly owned subsidiary of BSquare and its 26employees will continue to operate out of its San Diego, Californialocation.

Since 1996, InfoGation has been dedicated to developing telematics solutions for the global automotive industry.Along with Microsoft and Clarion Co. Ltd., InfoGation created thefirst in-car computing device, AutoPC, powered by the MicrosoftWindows CE for Automotive operating system.

"InfoGation's reputation as a premier automotive navigationinnovator with an outstanding commitment to customer servicecomplements BSquare's expertise in embedded systems and dedication todelivering superior solutions to the smart device market," saidClarion's Dr. Yasuhiko Nakagawa, director and GM of Product Strategy."Clarion will benefit from their collective technology and serviceofferings."

"One of the fastest growing segments of the smart device market,telematics provide users access to emergency assistance, navigation,and communications tools while on-board their vehicle," said WilliamBaxter, president and CEO of BSquare. "The quality of products,customers and employees acquired through the InfoGation transactionenhances our current offerings and allows us to deliver high qualitynavigation and computing products to the market. We are confident ofour combined ability to provide increasingly integrated solutions, andwe believe InfoGation products and services will be accretive to ourrevenue in early 2003."

According to BSquare, with the convergence of the Internet, wireless communications andinformation and commerce services, InfoGation's software and servicesconnects cars to the Internet and enables car manufacturers and fleetoperators to differentiate their products. Dr. Kent Pu, founder ofInfoGation said, "Having InfoGation join the BSquare team willstrengthen our position as a leading supplier of telematics solutionsdue, in part, to the advantages of BSquare's business infrastructureand complimentary BSquare technology. We believe this merger will helpboth groups achieve greater success and penetration in the smartdevice market."

The transaction will be accounted for as a purchase of stock.Consideration includes the exchange of approximately 1.3 millionshares of BSquare Common Stock and approximately $3.65 million in cashfor all of the issued and outstanding common and preferred shares ofInfoGation. In addition, each option to purchase shares of InfoGationCommon Stock outstanding at the effective time of the Merger will beassumed by BSquare and will be treated as an option to purchase thatnumber of shares of BSquare Common Stock as calculated by the exchangeratio.

The definitive agreement has been signed, and closing of thetransaction will occur upon completion of standard closing conditions.InfoGation's revenue and net loss were approximately $3.2 million and$(1.9) million in fiscal year 2001, respectively; and had net equityof approximately $600,000 at December 31, 2001.

About InfoGation

InfoGation Corp. is a developer of navigation andcommunication applications, integration services and real-time contentdelivery. According to the company, its products and services enhance safety, security,productivity and the overall driving experience. InfoGation enablescar manufacturers, Tier-1 auto suppliers, fleet operators and wirelesscarriers to provide value-added services, enabling productdifferentiation, increased customer retention and incrementalrevenues.

The company's customers and partners include some of the world'sleading car manufacturers, Tier-1 automotive suppliers and wirelessportal companies such as Microsoft, Clarion, Visteon, Peugeot Citroenand Navigation Technologies. Founded in 1996, InfoGation isheadquartered in San Diego, California. More information on InfoGationCorporation can be found at www.infogation.com.

About BSquare

BSquare Corporation providessolutions for smart devices in consumer, enterprise, industrial, andautomotive markets. As a Windows Embedded Partner Gold-level Memberfor Microsoft, BSquare empowers the creation, connection, andmanagement of Windows Powered smart devices through software,hardware, and service solutions. BSquare provides engineering servicesincluding device development, quality assurance, and systemintegration as well as services for managing client devices deployedinto the market. For more information, visit BSquare atwww.bsquare.com or call 888/820-4500.

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