Microsoft Pocket PC Software Previewed At Annual Consumer Electronics Show

Casio, Compaq, HP and Symbol Plan to Support Powerful, Versatile, Windows-Powered Pocket PC Software

LAS VEGAS, Jan. 6, 2000 — Today at the 2000 International CES, Microsoft Corp. previewed the next-generation Windows® CE-based Palm-size PC software and gave the devices a new name: Pocket PCs. Hardware vendors that include Casio Computer Company Ltd., Compaq Computer Corp., Hewlett-Packard Co., Siemens Communications Devices and Symbol Technologies Inc. plan to support Pocket PC software in upcoming products expected to be available in the first half of this year. The Pocket PC software, previously code-named "Rapier," puts the best of the PC into a small device, providing users with the freedom to better manage their work and their life anywhere, any time.

"With Pocket PCs powered by Windows, we are continuing to change what people expect from a PDA," said Jonathan Roberts, general manager for Windows CE at Microsoft. "Pocket PCs can help people connect to their most essential information while away from their desks. By introducing advanced software and expandability, these devices can also help people make the most of their downtime."

Ted Clark, vice president of Compaq's iAppliances Division, part of its new Internet Products and Services Group, expanded on the significance of the Microsoft announcement, stating "This new operating system enables Compaq to deliver extremely cool Pocket PC products with the functionality that our customers are asking for."

In his CES keynote address, Microsoft Chairman and CEO Bill Gates demonstrated for the first time two compelling new applications that will ship with the Pocket PC: Microsoft® Reader with ClearType TM display technology and the Microsoft Windows Media TM Player. These applications demonstrate how advanced software and powerful hardware, such as 32-bit microprocessors with plenty of core system memory and support for industry-standard expansion slots such as CompactFlash, combined with bright color screens and stereo output, will make Pocket PCs outstanding productivity devices. Pocket PCs are versatile and can be expanded to meet a broad range of customer interests and requirements.

"With the Pocket PC software, Microsoft has enhanced an already versatile platform, making it even easier to use and more essential as an everyday tool," said Helen Chan, worldwide marketing manager for HP's Asia Pacific PC Division.

"Siemens believes strongly in the future success of the mobile Internet devices market," said Peter Zapf, president of Siemens Communication Devices. "The Pocket PC, through its improved connectivity, fits into our strategy to create exciting products for this market together with our new partner Casio." Siemens and Casio recently announced their plan to jointly develop, manufacture and market Pocket PCs with multimedia, wireless Internet and mobile phone capabilities.

The Microsoft Reader electronic book software is designed to deliver an on-screen computer reading experience that, for the first time, approaches the convenience and quality of reading text printed on paper. Microsoft Reader also adheres to the traditions and benefits of good typography. It offers a clean, uncluttered display; ample margins; proper spacing, leading and kerning; and powerful tools for book-marking, highlighting and annotation. Microsoft Reader includes a built-in dictionary as well as a library that can store and manage a large collection of books and other documents. It also features a flexible copy-protection system that allows publishers to distribute titles protected from piracy and illegal copying.

The Windows Media Player will provide consumers with access to music in Windows Media and MP3 formats from their own digital music library created with personal jukebox software or downloaded from the Internet. Consumers selecting the Windows Media format will get two hours of CD-quality playback on a typical 64MB device and one hour of playback using MP3. The Windows Media Player also includes support for Microsoft's digital rights management (DRM) technology, which offers access to secure music from major record labels including Sony, EMI, BMG and Warner Music. Windows Media DRM allows music labels to protect their artists' rights and interests and, in turn, delivers a wider selection of Internet-based music to consumers.

Beginning in February 2000, the Windows Media Player will be available for download to existing Palm-size PCs, including the Casio E-100 and E-105, the Compaq 1530 and 2130 and the HP Jornada 430se Palm-size PC. Windows Media Player will ship preinstalled on Pocket PCs when they become available at retail later this year.

Founded in 1975, Microsoft (Nasdaq "MSFT" ) is the worldwide leader in software for personal and business computing. The company offers a wide range of products and services designed to empower people through great software -- any time, any place and on any device.

Microsoft, Windows, ClearType and Windows Media are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

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Brooke Richardson, Waggener Edstrom, (408) 986-1140, brooker@wagged.com

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