BSQUARE has acquired assets of privately held TestQuest, a provider of test automation and management solutions for mobile and embedded devices and applications. With the addition BSQUARE will expand its customer base in the United States, China, Korea, Japan and Europe, plus add new customers building devices and developing applications on multiple embedded operating systems such as Windows Mobile, Symbian, Linux, RIM BlackBerry, QNX and others.

The asset purchase price is expected to be approximately $2.2 million in cash. $1.9 million in cash has been paid as of the November 18, 2008 closing date. Assets acquired primarily include TestQuest's intellectual property, accounts receivable and equipment. BSQUARE will be hiring 22 employees of TestQuest. During the twelve months ended September 30, 2008 TestQuest generated $4.8 million in revenue (unaudited), of which $.6 million was service-related. BSQUARE had a 2007 revenue of $ 59.4 million and a net income of $ 2.8 million.