BELLEVUE, Wash. and SAN JOSE Calif. – October 1, 2007 – BSQUARE (Nasdaq: BSQR), a leading provider of Microsoft Windows Embedded-based solutions, and DT Research, an industry leader in the development of information appliances for vertical markets, today announced that the DT Research WebDT™ Signage System will run on the Microsoft Windows XP Embedded operating system. The partnership between DT Research and BSQUARE has resulted in a comprehensive digital signage system running on the world's most pervasive operating system. The Windows XP Embedded operating system brings superior compatibility, a rich feature set and simplified day-to-day management to the WebDT Signage System –- the first interactive digital signage system designed specifically for commercial use.

"The popularity of digital signage is increasing dramatically due to the unique capability to provide dynamic control over when and where messages are delivered," said Daw Tsai, president of DT Research. "We chose the Windows XP Embedded operating system based on its compatibility with the majority of applications and devices on the market today. We selected BSQUARE as our partner because of their expertise in Windows XP Embedded systems and their ability to deliver toolkits and licenses as well as engineering services, products, training, and support. These resources help meet our customers' time-to-market objectives as they deploy our new WebDT Signage Systems."

"Retail stores, hotels, restaurants and other businesses that run applications on Windows XP Embedded now have the option of using existing applications as digital signage and/or kiosk content," said Brian Crowley, CEO and president of BSQUARE. "This capability will allow companies to save some of the time and costs associated with creating new content and applications for a digital sign system."

"As companies integrate digital signage into their business infrastructure, the benefits of having these systems run on a Windows operating system are clear," said Jeff Felbeck, senior partner marketing manager, Americas at Microsoft Corp. "Since most IT professionals are familiar with Windows XP Embedded, the deployment and maintenance of the WebDT Signage System will be fast and easy. Additionally, the number of features available within the Windows XP Embedded operating system offers superior flexibility for digital sign applications and content."

The WebDT Signage System is a comprehensive solution with fully integrated hardware and software. The unique modular design comprises of content management software, device management software, and a display-integrated media player, or a separate signage appliance that can be added to any display. The system offers the largest industrial-grade computing display with optional integrated infrared (IR) touch, facilitating simultaneous digital sign and kiosk functionality. (See related press release - DT Research Unveils First All-in-one Digital Signage System with an Industrial, Modular Design - October 1, 2007.)

For DT Research customers leveraging existing applications for their new WebDT Signage system, BSQUARE has introduced an Application Porting Jumpstart service. For more information, visit www.bsquare.com/services/appsoftware.asp.