Microsoft moves ahead with plans to license, ship OS/2 2.0

Business Wire

July 3, 1991

REDMOND, Wash. -- Microsoft Corp. is extending contracts for current licenses of OS/2 version 1.3 to allow computer manufacturers (OEMs) to sell version 2.0 when it begins shipping sometime around the end of the year.

Microsoft said the extended contracts will allow OEMs to stay competitive with IBM Corp. in terms of pricing and availability.

OS/2 is developed as part of a Joint Development Agreement (JDA) between Microsoft and IBM. The two companies announced last fall that IBM was taking over development of version 2.0 while Microsoft focused on version 3.0. IBM has announced plans to ship version 2.0 before the end of 1990. Microsoft's OEMs will be able to ship OS/2 at the same time.

Under the JDA, Microsoft will provide OEMs with exactly the same OS/2 code that IBM ships. This means that products such as OS/2 Extended Services/2 and OfficeVision will run on OS/2 from other manufacturers.

``IBM, recognizing the speed with which customers are moving to Windows applications, is promising that this first release of 2.0 will provide `better Windows than Windows,' and has defined running Windows 3.0 applications as a requirement for OS/2 to succeed,'' said Steve Ballmer, Microsoft senior vice president, systems software. ``We are pleased that IBM has taken to heart the need to do a great job of supporting Windows users in the first release of OS/2 2.0, but we believe IBM's commitment is very aggressive.''

More than 50 OEMs license OS/2 version 1.x from Microsoft, and Microsoft expects them to offer version 2.0.

``Microsoft wrote the bulk of version 2.0, prior to our handing it over to IBM,'' Ballmer said. ``OS/2 1.3 and LAN Manager form a foundation for server applications, and OS/2 2.0 needs to continue that tradition.''

Microsoft is the only vendor to supply OEMs with a full line of Intel-based operating systems -- DOS(a), Windows, and OS/2. Microsoft will enable OEM customers to easily offer all these systems, and market forces can determine their respective success. Microsoft strategy and focus for the desktop remains centered on Windows.

Microsoft Corp. (NASDAQ:MSFT) develops, markets and supports a wide range of software for business and professional use, including operating systems, network products, languages and applications, as well as books, hardware and CD-ROM products for the microcomputer marketplace.

(a) As used herein, ``DOS'' refers to MS-DOS and PC-DOS operating system.

NOTE:

-- Microsoft, the Microsoft logo and MS-DOS are registered trademarks and Windows is a trademark of Microsoft Corp.

-- OS/2 is a registered trademark licensed to Microsoft Corp.

-- Intel is a registered trademark of Intel Corp.

CONTACT: Microsoft Corp., Redmond Marty Taucher, 206/882-8080 For General Sales and Product Information, 800/426-9400 or Waggener Edstrom, Portland, Ore. Collins Hemingway, Pam Edstrom, 503/245-0905 12:38 ET