InPlay Technologies and BSQUARE Partner to Develop New Digital Pen Input Device

InPlay Technologies (NASDAQ: NPLA), a developer of innovative human input devices for electronic products, today announced that it has partnered with BSQUARE Corporation (NASDAQ: BSQR), a leading provider of Windows Embedded solutions to the global embedded device community, to produce an innovative new pen input device aimed at the educational market in China and India. The new device is a bridge between traditional pen-and-paper and digital pen input commonly used with tablet PCs. Set up with a single-board digitizer behind the screen, the system is connected to the computer via a USB cable. It is designed to be used alone or underneath a common pad of paper. Writing on the pad using InPlay’s battery-powered digital pen technology, the pen inks on the paper and captures the digital input through the digitizer below. The pen can also be flipped over to allow it be used as an active tablet stylus. "InPlay has a market-ready, viable solution for Windows Embedded device manufacturers that need a state-of-the-art input device that is accurate, power-efficient, and cost-effective,” said Carey Butler, Vice-President of Professional Engineering Services, BSQUARE. "InPlay’s digital technology enables unique features like the hover capability and security coding not available elsewhere.” BSQUARE designed the product using InPlay’s patented FinePoint digital pen technology. Production of this device is expected to begin in the second half of 2008. "Working with BSQUARE, we have developed a product that expands digital pen input beyond traditional tablets,” said Ramesh Ramchandani, President and COO, InPlay. "With our digital platform, we hope to make the pen a standard user interface that can be used for a wide range of electronic devices.” InPlay's FinePoint digital computing system (the only of its kind in the industry) is designed and engineered to optimize power consumption while maintaining high accuracy, high resolution and low noise performance, all while enabling advanced functions such as hover capability and security coding in a compact, competitively-priced device. This pen-and-digitizer system allows the pen itself to interact with the computer and gives the OEM the capability to incorporate a wide variety of functions and pen outputs, via a side-mounted button. About BSQUARE BSQUARE is a software solution provider to the global embedded device community. Committed to delivering quality, lowering project risk and time to market, our teams collaborate with smart device makers at any stage in their device development. For more information about BSQUARE, visit www.bsquare.com. (BSQUARE is a registered trademark of BSQUARE Corporation.) About InPlay Technologies InPlay Technologies is a developer of innovative human input devices for electronic products. The company's FinePoint division offers the only digital-based pen-input solution for the rapidly growing mobile computing market. With InPlay’s digital technology, OEMs have an almost limitless roadmap for development of new features and functions for their product designs. The Company’s Duraswitch® brand of electronic switch technologies couples the friendly tactile feedback of mechanical pushbuttons and rotary dials with the highly reliable, thin profile of membrane switches enabling OEMs to create ergonomic, space saving input panels for a wide range of applications. Visit www.inplaytechnologies.com for more information. This news release contains certain "forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include statements regarding our expectations for launch of this new product using our digital pen technology. Risks and uncertainties that could cause results to differ materially from those projected include changes in orders or timing from our customers and other uncertainties described from time to time in our documents filed with the Securities and Exchange Commission, including our Annual Report on Form 10-KSB for the year ended December 31, 2006 as filed with the Securities and Exchange Commission on April 2, 2007. These forward-looking statements represent our beliefs as of the date of this press release and we disclaim any intent or obligation to update these forward-looking statements.