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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 31, 2002, we had an accumulated deficit of $36.4
million. Although we achieved net income in 2002 for the second year in a row,
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. Our ability to
increase revenues and achieve sustained profitability and positive cash flow
over the next several years will depend primarily upon market acceptance of, and
achievement of material sales from, new products, including the ReVolution, of
which there can be no assurance.


OUR NEWEST PRODUCT, REVOLUTION, WAS RELEASED LATER THAN ORIGINALLY PLANNED

         We currently expect to derive a significant portion of our revenues in
fiscal 2003 from sales of our newest product, the ReVolution. However, we have
experienced significant delays in its production. This product originally was
scheduled for release in August 2002, but the release was delayed to March 2003.
Because of the delays in production, some customers who previously placed orders
for this product have since canceled their orders. In addition, some of our
competitors have been able to introduce similar products to their customers
during the past seven months. Therefore, even though the ReVolution is now
available to customers, there can be no assurance that our customers will choose
to purchase the ReVolution instead of products sold by our competitors. As a
result, our success is dependent in part upon the success of the ReVolution
product.


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
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, utilities, and
other field service organizations, 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.

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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, mobile computing and communication
applications in the government, military, public services, utilities and other
field service 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

         We depend on third-party manufacturers, some of whom are located
outside the United States, to manufacture and assemble some of our products. For
example, our newest product, ReVolution, is being manufactured in Taiwan. This
reliance on third-party manufacturers 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; Northrup
Grumman; 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, tablet 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.



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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

         In the year ended December 31, 2002, international sales represented
approximately 13% 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 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:


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

         o    changes in customer buying patterns;

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

         o    the timing and nature of customer returns;

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

         o    our competitors' tactics;

         o    technological developments; and

         o    the overall strength of the economy.

         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



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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
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 2003 BUT MAY NOT BE ABLE TO DO SO

     Kontron AG ("Kontron") has 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 twelve-month period ended December 31, 2003. We also have a line of
credit in place with an existing bank to fund potential cash requirements in
excess of our current cash flow projection, if necessary. 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 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 owns approximately 65% of our Common Stock, assuming conversion
of our outstanding shares of Preferred Stock. 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.



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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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