BSQUARE and Sierra Wireless Collaborate to Reduce Development Time and Cost for OEMs Adding 3G Cellular Capability to Embedded Devices

Bellevue (Washington) and Vancouver (Canada)-January 15, 2008

BSQUARE (Nasdaq: BSQR) and Sierra Wireless (NASDAQ: SWIR - TSX: SW) today announced a strategic technology initiative designed to reduce development time and cost for original equipment manufacturers (OEMs) integrating Sierra Wireless embedded modules into Windows Mobile and Windows Embedded CE powered devices. These devices may be used for applications as varied as data collection, navigation, and point-of-sale solutions.

Under this initiative, Sierra Wireless customers developing Windows Mobile and Windows Embedded CE powered devices now have access both to Sierra Wireless professional integration services and to BSQUARE’s go-to-market radio integration service package for Sierra Wireless modules. The BSQUARE radio integration service package includes Windows Mobile and Windows Embedded CE radio interface layer (RIL) software that has been pre-integrated, pre-tested and performance-optimized for use with the Sierra Wireless radio drivers and with the Microsoft Windows CellCore radio stack. BSQUARE will also offer a Sierra Wireless-based cellular 3G hardware option within its DevKit hardware development platform product line, which will ship with the same optimized software. The new DevKit product is targeted to ship in Q2 2008.

Both the radio integration service package and the DevKit option support Sierra Wireless embedded modules for GSM and CDMA technology. Together, they can significantly reduce the development time and cost for Windows Mobile and Windows Embedded CE OEMs. 

“Sierra Wireless is focused on bringing best-in-class wireless modules to market in a variety of devices and applications, and BSQUARE is highly respected as an industry expert in Windows Mobile and Windows Embedded CE development and testing, ” said Trent Punnett, senior vice president, Marketing and Corporate Development, for Sierra Wireless. “Collaborating with BSQUARE provides our growing Windows Embedded CE and Windows Mobile category with an unmatched complementary solution, eliminating historical time-to-market and integration cost barriers and providing our Windows Embedded CE and Windows Mobile device customers with a platform for continuing innovation.”

“BSQUARE offers deep expertise in system-level software, including RIL software for both CDMA and GSM radios,” said Brian Crowley, president and CEO of BSQUARE. “This initiative with Sierra Wireless enables us to lower time and cost barriers for customers of all sizes, improving their return on investment and helping them meet the growing demand for cellular radio functionality in embedded devices.”

About BSQUARE
BSQUARE is a software solution provider to the global embedded device community.  Our teams are committed to delivering the highest quality, lowering project risk, and reducing time to market, and can collaborate with smart device makers at any stage of device development.  For more information about BSQUARE, visit www.bsquare.com.

About Sierra Wireless
Sierra Wireless modems and software connect people all over the world with mobile broadband networks that keep them in touch, informed, and productive from wherever they need to be. The Company offers a diverse product portfolio addressing enterprise, consumer, original equipment manufacturer, machine-to-machine, and specialized vertical industry markets, and provides professional services to customers requiring expertise in wireless design, integration, and carrier certification. Sierra Wireless (NASDAQ: SWIR – TSX: SW) is headquartered in Richmond, British Columbia, Canada with additional offices in Carlsbad and Hayward, California; London; and Hong Kong. For more information about Sierra Wireless, visit www.sierrawireless.com.

Sierra Wireless Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, supply conditions, channel and end customer demand conditions, revenues, gross margins, operating expenses, profits, and other expectations, intentions, and plans contained in this press release that are not historical fact. Our expectations regarding future revenues and earnings depend in part upon our ability to successfully develop, manufacture, and supply products that we do not produce today and that meet defined specifications. When used in this press release, the words "plan", "expect", "believe", and similar expressions generally identify forward-looking statements. These statements reflect our current expectations. They are subject to a number of risks and uncertainties, including, but not limited to, changes in technology and changes in the wireless data communications market. In light of the many risks and uncertainties surrounding the wireless data communications market, you should understand that we cannot assure you that the forward-looking statements contained in this press release will be realized.

BSQUARE is a registered trademark of BSQUARE Corporation. Other product or service names mentioned herein are the trademarks of their respective owners.