BSQUARE Corp. –

BELLEVUE, Wash. – BSQUARE Corp., an Internet-accessible appliance company, went public October 20, offering 4 million shares at $15 apiece. The stock priced above its $12 to $14 filing range.

There were 32.2 million shares outstanding after the offering, which was underwritten by Credit Suisse First Boston, Lehman Brothers, A.G. Edwards & Sons Inc. and Wit Capital Corp.

TA Associates Inc. and Encompass Group were venture backers. There were no selling shareholders.

The company provides a broad range of software products and services that facilitate the integration of the Microsoft Windows CE operating system into a variety of intelligent computing devices, or ICDs. The software enhances the functionality of these devices, which include palmtop computers, digital organizers, TV set-top boxes and hand-held data collectors.

The company expects the $54.8 million in proceeds from the IPO to be used for general corporate purposes, including capital equipment purchases.

BSQUARE has always been profitable, earning $3.8 million in 1997 and $2.3 million in 1998.

Jeffrey Chambers, a managing director at TA Associates, joined the company’s board of directors in February 1998, along with Scot Land, a managing director at Encompass Group.

BSquare – Selected Financial

(in thousands, except per share data)

July 15 (inception) Year Ended December 31, Six Months Ended June 30,

to December 31, 1994* 1995* 1996* 1997* 1998* 1998* 1999*

Total revenue 151 1,573 4,179 14,405 24,612 10,802 18,543

Net income 64 693 1,971 3,806 2,300 1,217 866

Net income per share 0.03 0.09 0.18 0.12 0.06 0.04

*Unaudited