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                                                                    Exhibit 99.1

                              CAUTIONARY STATEMENT

     Kontron Mobile Computing, Inc. ("we" or "us"), or persons acting on our
behalf, or outside reviewers we have retained who are making statements on our
behalf, or underwriters, from time to time, may make, in writing or orally,
"forward-looking statements" as defined under the Private Securities Litigation
Reform Act of 1995 (the "Act") and incorporated in Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. This Cautionary Statement is for the purpose of qualifying for the
"safe harbor" provisions of the Act and is intended to be a readily available
written document that contains factors which could cause results to differ
materially from those projected in the forward-looking statements. These factors
are in addition to any other cautionary statements, written or oral, which may
be made or referred to in connection with any forward-looking statement.

     The following matters, among others, may have a material adverse effect on
our business, financial condition, liquidity, results of operations or
prospects, financial or otherwise. Reference to this Cautionary Statement in the
context of a forward-looking statement shall be deemed to be a statement that
any one or more of the following factors may cause actual results to differ
materially from those that we have projected, forecast, estimated or budgeted in
any forward-looking statement or statements:

                         Risks Related to Our Operations

We have a history of losses

     As of December 30, 2001, we had an accumulated deficit of $36.6 million.
Although we achieved net income and a positive operating cash flow in 2001 for
the first time in our history, we expect to continue to incur significant
operating expenses and, as a result, will need to generate significant revenues
to sustain profitability, which may not occur. Even if we do sustain
profitability, we may be unable to increase profitability on a quarterly or
annual basis in the future.

We cannot assure you that we will generate sufficient sales to allow us to
continue to operate profitably

     The market for the kind of computing platforms and solutions we sell is
relatively new and limited. The rugged computing platforms that we use are both
heavier and more expensive than most consumer portable personal computers. Our
success will depend upon our ability to expand the tools and services we offer,
penetrate our key vertical markets of government, military, public services, and
utilities, and continue our reduction in product costs and time to market. We
cannot assure you that our current or new products will gain widespread
acceptance or that we will generate sufficient sales to allow us to continue to
operate profitably. We will in particular suffer adverse effects if the market
for the kind of computing solutions and products we sell declines.

Our ability to develop solutions around our rugged platforms will influence our
ability to compete in the marketplace

     We have had a history of designing and delivering hardware platforms for
extreme environments and will continue to capitalize on this strategy. Our
strategy is to be a key provider of tools and services to facilitate field data
acquisition, test and measurement, telemetry, and mobile communication
applications in the government, military, public services, and utilities markets
worldwide. To produce these solutions, we combine appropriate hardware, software
and peripherals and also provide service and support. To succeed with this
approach, we will need to design, develop, conceptualize and support computing
solutions that address the needs of these vertical markets. We cannot guarantee
that we will be able to do this in a timely, cost-effective manner or that our
target markets will accept the solutions that we do introduce.

We depend on third-party manufacturers to produce some of our products

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     We depend on third-party manufacturers to manufacture and assemble some of
our products. This results in dependence on the timely delivery of high quality
products from these manufacturers and may leave us with less flexibility and
control over the manufacturing process than if we conducted all of these
operations internally. These manufacturers (including the manufacturers of
subassemblies included in our final products) may not timely deliver the items
they are expected to produce. Any occurrence of this sort could compromise our
ability to deliver our products and solutions in a timely fashion. It could also
require us to make alternative arrangements, which might not be available on
acceptable terms or on a timely basis. If we were unable to make alternative
arrangements, our business and financial condition could suffer.

Our failure to anticipate or rapidly respond to changing customer demands could
adversely affect our market position

     Both the computer industry and the diagnostic and data collection
instrument industry are characterized by rapid technological change, including
changes in customer requirements, frequent new product introductions and
enhancements, and evolving industry standards. Our success will depend in part
on our ability to keep pace with technological developments and emerging
industry standards and to respond to customer requirements by enhancing our
current products and developing and introducing new solutions and products. Our
market position will be adversely affected if we do not adequately anticipate or
rapidly respond to changes of this type. Technological advances may also
increase the level of competition in our market niche.

Intense competition could reduce our market share and harm our financial
performance

     We occupy a niche in the portable computer market. In this niche, our
products face direct competition from companies producing portable computers
intended for field use such as Dolch Computer Systems; Getac Corp.; Itronix
Corp.; Paravant Computer Systems, Inc.; Motorola, Inc.; Data 911, Litton
Industries, Inc., and Panasonic Personal Computer Company. Our computing
platforms also face indirect competition from a variety of different companies
and products, including consumer portable personal computers, customized
portable personal computers and single-purpose diagnostic and data collection
instruments.

     Both the computer industry and the diagnostic and data collection
instrument industry are intensely competitive. To the extent that we and our
current direct competitors expand and develop the market niche that we currently
service, other manufacturers may turn their attention to it and begin to produce
products directly competitive with those we offer. Many of the companies that
produce or may produce devices that compete or may compete, directly or
indirectly, with ours have greater name recognition, larger client bases and
substantially more financial, technological and marketing resources than we do.
These factors may provide them with significant advantages over us. Among other
things, these factors may allow them to adapt more rapidly and effectively to
changes in technology or in the market or to develop or market products that
will be more widely accepted. Competitive pressures could result in reduced
market share, price reductions, reduced margins and increased spending on
marketing and product development, any of which could adversely affect our
business.

If we do not adequately manage our inventory we may be required to make
write-offs in the future

     In the past, we have written off portions of our parts inventory that have
become obsolete. If our current policies aimed at preventing a recurrence prove
ineffective, we may be required to do so again. Any significant future
write-offs could have an adverse effect on our financial condition.

We may not succeed in attracting and retaining the personnel we need for our
business

     Our future success depends substantially on our ability to attract and
retain the personnel we need for our business. Our personnel needs include
highly trained personnel for management, sales and engineering. Qualified
individuals in these areas are in high demand and are often subject to competing
employment opportunities. In recent years there has been great demand for
qualified employees in the Minneapolis area, where our headquarters are located.
We may not succeed in attracting and retaining the personnel we need for our
business.

Adverse events with respect to our international sales could have an adverse
effect on our business and financial condition

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     In the year ended December 30, 2001, international sales represented
approximately 14% of our net sales. All of our export sales are currently
denominated in United States dollars. An increase in the value of the United
States dollar relative to foreign currencies could make our products more
expensive and, therefore, potentially less competitive in foreign markets. In
the future, if we were to denominate our export sales in foreign currencies, our
financial condition and results of operations would become subject to foreign
currency translations and the possibility of currency exchange or price controls
or other restrictions on foreign currencies. If any of these events occurred, it
could have an adverse effect on our business and financial condition.

We depend on resellers for our product distribution

     We distribute a substantial portion of our products through independent
sales representatives and distributors. We also sell our products to
value-added-resellers (known as VARs) and systems integrators. Our success
depends in large part upon the performance of these resellers and on our ability
to attract new resellers. Many of our resellers also carry -- and may have
incentives to encourage purchase of -- competitive products. Most of our
resellers may terminate their written agreements with us with or without cause
by giving us 30 days' written notice. The loss of any of our major resellers or
a failure to make acceptable arrangements with resellers in new markets could
have a material adverse effect on us.

We obtain a number of our components from single sources

     Our rugged computing platforms employ a number of components not generally
used in off-the-shelf personal computers, such as special hard disk drives,
CD-ROM drives, floppy disk drives, displays and power supplies. We currently
obtain a number of these components from single sources. It could create
uncertainty and be costly and time-consuming if we had to change suppliers. If
we could not obtain adequate or timely quantities of necessary components from
our current suppliers, we might not be able to identify or access alternative
sources within a reasonable period of time, on acceptable terms, or at all. Some
of our current vendors use tools that have been designed for us and are our
property. If we were required to change suppliers for these components, we would
need either to move the necessary tools or to obtain new tools, either of which
could entail significant cost and delay. Moreover, our buying power may be
limited by our small volume and we may receive less favorable allocations and
other terms such as price, timing or other factors than larger companies buying
from the same suppliers. Any of these factors or a significant increase in the
price of components could have a material adverse effect on our ability to
manufacture and market our products.

Potential fluctuations in our quarterly financial results make financial
forecasting difficult

     Our quarterly operating results may fluctuate significantly in the future
as a result of a variety of factors, many of which are outside our control.
These factors include:

     .    long customer sales cycles (especially for customers that are
          government agencies or large corporations);

     .    changes in customer buying patterns;

     .    orders from significant customers in one quarter that are
          disproportionate in size or value compared to our other orders;

     .    the timing and nature of customer returns;

     .    the timing of the introduction of new products by us or our
          competitors;

     .    our competitors' tactics;

     .    technological developments; and

     .    the overall strength of the economy.

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     All of these factors, along with the uncertainties associated with the
introduction of any new product or product enhancement, in gauging ultimate
customer demand, and in predicting general trends in the market for our tools
and services, may limit our ability to plan for production and to forecast
quarterly results of operations accurately. We believe that quarter-to-quarter
comparisons of our operating results may not be a good indication of our future
performance. Stockholders should not rely on our operating results for any
particular quarter as an indication of our future operating results.

                     Risks Related to Intellectual Property

Failure to protect our intellectual property rights could harm our brand and our
ability to compete effectively

     We rely on a combination of unpatented trade secrets and know-how and on
the expertise of our employees. We do not rely on patented processes or
technologies. The protective steps we have taken may be inadequate to deter
misappropriation of our proprietary information. We may be unable to detect the
unauthorized use of, or take appropriate steps to enforce, our intellectual
property rights. Effective trade secret protection may not be available in every
country in which we offer or intend to offer our products and services.
Likewise, others may independently develop or otherwise acquire unpatented
and/or patented technologies or products similar or superior to ours. We claim
trademark rights in three marks we use in connection with our products in the
United States. We are aware that there are third parties that have claimed or
may claim superior rights, in some U.S. territories, to use marks in which we
claim rights. One or more of these third parties may contest our right to use or
register our trademarks. We do not know whether any of the trademarks covered by
our applications for registration will be found registrable, that registrations
will issue, or that we can support the cost of defense of our trademarks.
Failure to protect our intellectual property adequately could harm our brand and
affect our ability to compete effectively. Defending our intellectual property
rights could also result in the expenditure of significant financial and
managerial resources, which could materially adversely affect our business.

Loss of software licenses could have an adverse effect on us

     We license some of the software that we include in our products from third
parties. If any licensor terminated any of these licenses, we might not be able
to license similar software from another party in a timely fashion, on
acceptable terms, or at all.

We may have to defend against intellectual property infringement claims, which
could have an adverse effect on us whether or not we prevailed

     Disputes over intellectual property are frequent in the high technology
area. Although we believe that our business activities do not infringe the
intellectual property rights of others, other parties may assert infringement
claims against us or claim that we have violated a patent or other proprietary
right belonging to them. Likewise, disputes may arise in the future with respect
to ownership of technology developed by employees who were previously employed
by other companies. Infringement claims, even if not meritorious, could result
in the expenditure of significant financial and managerial resources. An adverse
determination could subject us to significant liabilities, require us to seek
licenses from or pay royalties to third parties or require us to develop
appropriate alternative technology. We might not be able to do any of these
things on acceptable terms, at an acceptable price, or at all. Any of these
results could materially adversely affect our business.

                    Risks Related to Our Financial Condition

Our Common Stock was delisted by Nasdaq and currently is traded on the Over The
Counter Bulletin Board

     In August 2000, our Common Stock was delisted from the Nasdaq SmallCap
Market for failure to demonstrate sustained compliance with the net tangible
assets listing requirement, and began trading on the Over The Counter Bulletin
Board. There can be no assurance that our Common Stock will continue to meet the

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requirements required for listing on the Over The Counter Bulletin Board or that
our Common Stock will continue to be publicly traded.

We may need to raise additional cash during 2002 but may not be able to do so

     On January 29, 2002, Kontron Embedded Computers AG (Kontron) agreed to
provide us financial support to enable us to meet our cash flow needs and
obligations as and when they become due through the period ended December 31,
2002. We are also in the process of finalizing a line of credit with an existing
bank. Nevertheless, we may need to raise additional capital. We may not be able
to access sufficient capital when required on favorable terms, if at all. If we
raise additional funds by issuing equity securities, existing shareholders may
experience dilution in their ownership interest. If we raise additional funds by
issuing debt securities, we may incur significant interest expense and become
subject to covenants that could limit our ability to operate and fund our
business. If we cannot obtain additional funds when required, we may be unable
to realize our current plans and may even be forced to cease operations.

Our loan agreements with Kontron are valued in Euros and our foreign currency
forward contract may negatively impact our cash flow

     In 2001, we began utilizing foreign currency forward contracts to protect
against significant fluctuations in net income (loss) caused by the valuation of
our loan agreement with Kontron. Our practice is to enter into a forward
contract at the beginning of each quarter and settle the contract at the end of
the quarter. Depending on the currency fluctuation of the Euro, we either pay
out cash or receive cash when we mark-to-market each quarter. The uncertainty of
the fluctuation of the Euro could cause cash flow problems.

                    Risks Related to Our Corporate Structure

One of our shareholders, together with its affiliates, owns a significant
percentage of our outstanding stock and by virtue of that ownership and various
contractual rights has significant influence over our operations and strategic
direction

     Kontron, together with certain of its affiliates, owns approximately 65% of
our Common Stock, assuming conversion of the shares of preferred stock owned by
them. In addition, two designees of Kontron currently serve on our Board of
Directors. Kontron's majority ownership stake gives Kontron the ability to
control the outcome of votes of our shareholders, and therefore results in
Kontron having significant influence on our operations and strategic direction.
Kontron's ownership may also have the effect of delaying, deterring or
preventing a change in control or a change in the composition of our Board of
Directors.

Our charter documents and Minnesota law may discourage a takeover of our company

     Provisions of our articles of incorporation, bylaws and Minnesota law could
make it more difficult for a third party to acquire us, even if doing so would
be beneficial to our shareholders.

We do not intend to pay dividends

     We currently intend to retain any earnings for use in the operation and
expansion of our business and therefore do not anticipate paying any cash
dividends in the foreseeable future.

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