Microsoft Introduces Palm PC, PC Companion Powered by Windows CE 2.0

Seven OEMs Commit to Extending Windows Into Your Palm

LAS VEGAS - Jan. 8, 1998 - Microsoft Corp. today announced the Palm PC (P/PC), the latest addition to the PC Companion line of products powered by the Windows® CE operating system version 2.0, putting the benefits of desktop information, synchronization, offline Web viewing and support for wireless communication into a device that fits in the palm of your hand. Seven hardware manufacturers - Casio Computer Company Ltd., FIC Group (Everex/LEO), LG Electronics Inc., Palmax Technology Company Ltd., Philips Electronics North America Corp., Samsung Electronics America Inc. and Uniden Corp. - have announced support for the Palm PC platform. Microsoft plans to ship the Palm PC software to OEMs in the first quarter of 1998.

"Palm PCs bring users everything they'd get from a connected organizer, but they also enable them to access e-mail with attachments, create and access voice recordings, view Web content offline and use multiple input methods," said Craig Mundie, senior vice president of the consumer platforms division at Microsoft. "In addition, the Windows CE 2.0 operating system guarantees that there will be thousands of developers able to create compelling solutions for these devices."

"We at Philips have chosen to leverage the success of the Velo 1 by extending our handheld companion product line with the Nino 300 and, in turn, providing a choice of Windows CE-based products for our customers," said Alan Soucy, general manager of Philips Mobile Computing Group. "We believe that with Windows CE, Microsoft has created a powerful platform that is familiar and easy to learn, and is open to a base of developers that seems limitless."

"Windows CE 2.0 is a great platform for the new Palm PC product," said Gary Rado, executive vice president of Casio's Handheld PC division. "The Palm PC is a natural extension for Microsoft Windows CE and puts it into another consumer-friendly and useful product category. We at Casio are excited about the future growth prospects and market opportunities presented by this new category of Windows CE-based products."

Palm PCs enable users to carry their vital desktop information - calendar, contacts, tasks, inbox, and Internet and intranet information - in one convenient, palm-sized design with easy-to-use one-handed operation. Users can easily share business and personal information with office and home PCs as well as with other Windows CE-powered PC Companion devices. With ActiveSync™ technology capabilities in Windows CE 2.0, Palm PC users can update key information from the desktop to the Palm PC and back, quickly and automatically.

A key design feature of the Palm PC is users' ability to input and retrieve information in a variety of formats. The Palm PC allows users to quickly access and input information by voice, ink, a soft keyboard or handwriting recognition, using natural and simplified characters.

Like the entire PC Companion line of products, the Palm PC was designed to be upgradable via ROM replacement; expandable, with a compact flash slot for storage and i/o modules (such as modems, Ethernet and wireless); and open for third-party applications and add-ons.

"Creating a broad Windows CE development platform for the Palm PC will be a key ingredient for making these devices successful," said Tim Bajarin, president of Creative Strategies Inc. "This will allow developers to create important and exciting applications that can make the Palm PC an indispensable tool for business and personal use."

"The more we work with Windows CE, the more confident we are that it is the mobile operating system of the future," said John Hewitt, vice president of equities for Goldman, Sachs & Co. "Our technology team is impressed with the richness of the system and what the supporting hardware provides in multiple form factors. Our brokers and traders are looking forward to our 1998 Windows CE implementation on the New York Stock Exchange floor, when we'll use Palm PCs and Handheld PCs to transact our business."

"Nalleys is committed to providing first-class systems support throughout the organization," said David Stenhouse, MIS manager of Nalleys Canada Ltd. "Our mobile Direct Store Delivery (DSD) system needs to integrate with the Nalleys ERP, customer management and office systems. The Palm PC form factor and Windows CE operating system environment provide us with a powerful, cost-effective and nonproprietary framework in which to more successfully integrate and manage our DSD sales channel."

Palm PCs come with a variety of useful applications, including the following:

• Pocket Outlook™. Includes Calendar, Contacts, Tasks and Inbox
• Note Taker. Captures ink and text notes and converts them to rich text format or Word on the desktop PC
• Voice Recorder. One-handed recording of voice notes for easy playback
• Mobile Channels. Enable viewing of Web content offline

Founded in 1975, Microsoft (NASDAQ "MSFT") is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and

personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.

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Other product and company names herein may be trademarks of their respective owners.

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